'Serious consumer protection concerns': Insurance watchdog moves to ban controversial fee

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Ontario\u0027s insurance watchdog is proposing to ban a controversial fee, following in the footsteps of the mutual fund industry. Read on.

is proposing to eliminate deferred sales charges — a potentially hefty commission levelled on customers who withdraw funds before the end of a contract — on new segregated fund contracts beginning June 1, 2023.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc.

The ban in the mutual fund industry prompted the new proposal from FSRA, which regulates the insurance industry in Ontario. In the debate over their use in the mutual fund industry, investor advocates argued that there was an inherent conflict of interest because the longer-term commitment with the prospect of early redemption fee would be arguably more beneficial to the fund seller than to the investor.

 

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'Serious consumer protection concerns': Insurance watchdog moves to ban controversial feeOntario\u0027s insurance watchdog is proposing to ban a controversial fee, following in the footsteps of the mutual fund industry. Read on.
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