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At the end of February, 2013, investments in Canadian companies accounted for 58 per cent of all equity mutual fund money invested by Canadians, according to the Investment Funds Institute of Canada. U.S. equity funds accounted for 11 per cent.
At the end of February, 2013, investments in Canadian companies accounted for 58 per cent of all equity mutual fund money invested by Canadians, according to the Investment Funds Institute of Canada. U.S. equity funds accounted for 11 per cent.
(123render/Getty Images/iStockphoto)

Mutual fund trailer fee ban should come soon

Canada’s securities regulators should end the payment of certain well-hidden fees to mutual funds sellers, according to one industry veteran who believes the change could spur the kind of entrepreneurship and clarity investors need.

At a roundtable held by the Ontario Securities Commission, Paul Bates, chair of the OSC’s Investor Advisory Panel, said regulators should commit to winding up “trailer fees,” a sum paid by fund companies to advisers, in the next five years, even though the industry is nowhere close to consensus on the subject.