Subject to the terms and conditions of the discount, customers will receive a dealer discount in cases where it is not possible to switch to the same or substantially the same mutual fund series or class within the same fund, and where management fee waiver of the trailing commission is also possible. It is not.
With effect from June 1, OEO dealers and fund organizations will also be exempted from OEO trailer ban for 45 days after acceptance of transfer initiated by the client of the mutual fund to facilitate such transfer.
Affected customers of OEO dealers will also receive communication on how their holdings will be affected. The CSA said those customer communication plans will be outlined in upcoming blanket orders.
The local blanket order enforcing the temporary exemption will go into effect on June 1, the CSA said, the same day the OEO trailer ban goes into effect. The blanket order will expire on November 30, 2023.
“While the effective date of June 1, 2022 will be the same in all jurisdictions, some jurisdictions will not set an expiration date on their local blanket order at this time and will instead revoke their blanket order at a future date,” the CSA said.