Securities Law

81-105CP - Mutual Fund Sales Practices [CP]

Published Date: 2009-09-25
Effective Date: 2009-08-28
Document(s):

Concurrently Published:

Table of Contents

PART      TITLE 

PART 1 PURPOSE

1.1 Purpose

PART 2 GENERAL DISCUSSION OF THE INSTRUMENT

2.1 Background
2.2 General Purpose of the Instrument
2.3 Application of the Instrument to Labour-Sponsored Venture Capital Corporations
2.4 Indirect Avoidance of the Instrument

PART 3 DEFINITION OF "REPRESENTATIVE"

3.1 Definition of "representative"

PART 4 DISCUSSION OF CERTAIN ASPECTS OF PART 2 OF THE INSTRUMENT

4.1 The phrase "in connection with the distribution of securities"
4.2 Non-Monetary Benefits
4.3 The phrase "pay for or make reimbursement of a cost or expense incurred or to be incurred by a participating dealer or a representative of a participating dealer"
4.4 Exception for Some Participating Dealers and Representatives

PART 5 COMMISSIONS

5.1 Method of Calculation
5.2 Bonus Commissions
5.3 Trailing Commission Thresholds

PART 6 INTERNAL DEALER INCENTIVE PRACTICES

6.1 Internal Dealer Incentive Practices

PART 7 MARKETING AND EDUCATIONAL PRACTICES

7.1 Definition of "direct costs"
7.2 Cooperative Marketing Practices
7.3 Mutual Fund Sponsored Conferences
7.4 Third Party Sponsored Educational Events
7.5 Meaning of "Location"
7.6 Promotional Items and Business Promotion Activities

PART 8 RECIPROCAL COMMISSIONS AND PORTFOLIO TRANSACTIONS

8.1 Reciprocal Commissions and Portfolio Transactions

PART 9 OTHER SALES PRACTICES

9.1 Commission Rebates
9.2 Tied Selling

PART 10 DISCLOSURE REQUIREMENTS

10.1 Disclosure of Equity Interests
10.2 Disclosure Requirements

PART 11 EXEMPTIONS

11.1 Exemptions