Compliance Memo

CM_2021-04; Elimination of DSC Purchase Option

For more information, contact:

Compliance Team
compliance@gpwealth.ca

Date Issued:

November 17, 2021

Following an extensive review of our policies in connection to the impending Client Focused Reforms that come into effect in the new year, we will be eliminating all deferred sales charge purchase options as of January 1, 2022, for any new trades.

All existing Pre-Authorized Contributions (PAC) with a DSC purchase option can continue until June 1, 2022, at which time the industry-wide ban on all deferred sales charge purchase options will come into effect. At that time, all existing PAC transactions will be converted to the equivalent front-end load version of the fund.

However, prior to June 1, 2022, if you are updating an existing PAC that is running with a DSC purchase option (e.g., increase or decrease the monthly amount) you must incorporate our new policy and therefore only the front-end version can be used.

All mutual funds sold under the DSC purchase option prior to January 1, 2022, will not have to be converted to another sales charge option (i.e., the redemption schedules on such DSC holdings will run until their scheduled expiry).

Lastly and as a reminder, all mutual funds recommended to a client with a DSC purchase option prior to January 1, 2022, must continue to include detailed notes providing the rationale for the purchase option.

As always, if you have questions or comments, contact the Compliance Department by email at compliance@gpwealth.ca.