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Weekly Reports

Updates for the week ending March 25, 2022

81-525 - Temporary Exemptions from the OEO Trailer Ban to Facilitate Dealer Rebates of Trailing Commissions and Client Transfers

Temporary exemptions from the OEO trailer ban to accommodate dealer rebates of trailing commissions and client transfers – local blanket orders: The CSA is publishing temporary exemptions on a date to be determined in March 2022 to ensure investment fund managers and OEO dealers can transition away from mutual fund series with trailing commissions. The exemptions will come into force on June 1, 2022, the effective date of the OEO Trailer Ban. OEO dealers and fund organizations will be exempted from the OEO trailer ban to facilitate dealer rebates of trailing commissions to clients holding mutual funds in OEO dealer accounts prior to June 1, 2022, as well as clients who transfer mutual funds to OEO dealer accounts on or after June 1, 2022. Dealer rebates will be provided to clients where switches to an equivalent or a substantially similar series or class of mutual fund securities of the same fund are not available and where a management fee rebate of the trailing commission is also not available. The CSA is implementing the temporary exemptions through local blanket orders that are expected to be substantially harmonized across the country.

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