This ALERT is for investors who buy mutual funds via a
discount broker. Discount brokers shouldn’t be collecting opaquely disclosed trailer
commissions intended to provide you with investment advice. The obligation to
provide investment advice is contained in Fund Facts , the document you were
given before you bought the fund .A report provided by securities regulators tells
us that about $25 Billion in mutual funds at discount brokers
are A series ( a class of fund with a portion of the cost intended for advice per Fund Facts) which means that investors are being overcharged .Since discount brokers cannot and do not provide
personalized investment advice, clients of A series funds are being robbed of returns.Clients are
not being treated fairly, honestly and in good faith as required by securities
the way, at 1% trailing commission, that amounts to an astounding $180,000,000
each year that isn't going towards the retirement funds of Canadians! Shameful,
no? That 1% is buried inside the MER (Management Expense Ratio) of the fund so it's not readily visible.
ask your discount broker what fee you are being charged to buy and own mutual
funds. If you are being charged an ongoing trailing commission for personalized advice, you are
being charged for a service that is not being provided. Ideally, the charge would be
equivalent to what you’d pay to buy an ETF, around $9.95 .
Securities regulators have banned all trailer commission payments to discount brokers but the effective date of the ban is June 1, 2022! Between now and then , your savings are being harvested , Take action now to eliminate the damage to your life savings.
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