On November 25, the Financial Services Regulatory Authority of Ontario (FSRA) proposed amendments to the existing Unfair or Deceptive Acts or Practices (UDAP) Rule. The amendments would eliminate deferred sales charges (DSC) on new segregated fund contracts effective June 1, 2023. DSCs are payable by clients when they withdraw money from a segregated fund contract before the end of the time period specified in the contract. New requirements would also be introduced with respect to existing DSCs, including customer disclosure and limits on the use of existing DSC options. Comments are the two sets of proposed amendments are due February 23, 2023.
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