* an IIROC dealer could subvert this by not offering 0% front load funds
Additionally, Reps should consider the suitability of DSC purchases for accounts in a de-accumulation stage e.g. the suitability of DSC purchases in RRIF accounts. In most cases, suitability will be almost impossible to justify when FEL is an available alternative.
https://m.wealthprofessional.ca/news/mutual-funds/ontario-right-to-oppose-mutualfund-trailer-bans-says-primerica-canada-ceo-249396.aspx?utm_source=GA&utm_medium=20181017&utm_campaign=WPCW-Newsletter-Opener&utm_content=&tu=. Investor advocates argue that clients without a large amount to invest can readily access robos , credit unions and banks without pre- paying for conflicted advice and without being locked in for 7 years in an actively -managed mutual fund. Such clients would also avoid all the dirty tricks that can ( and have been) be played with DSC sold funds. Such a product is clearly not in the best interests of families struggling to save for retirement. Professional advisors are unlikely to recommend DSC sold funds but fund salespersons might. The biggest beneficiary of DSC funds is the salesperson. Caveat Emptor . NOTE: If for some reason you change firms, you will have pre-paid the lion's share of the advice fee ,so your new Rep may want to alter your holdings so that he / she receives compensation related to his / her efforts. That portfolio adjustment can be expensive.