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.
If the Fund fails the metric test, passive would have to be considered. The DSC issue would automatically be resolved since low cost Index Mutual funds could not pay the 5% upfront commission. If index fund MER’s were increased, then ETF’s would have a field day.
Article shows how the DSC Mutual fund abuses Canadian families saving for retirement.