The Ontario Securities Commission has granted regulatory relief to Invesco Trimark Ltd. allowing it to provide co-op marketing support for dealer events dealing with tax and estate planning.

In a decision reported in Friday’s OSC Bulletin, the fund manager was granted an exemption to pay a participating dealer direct costs incurred relating to a sales communication, investor conference or investor seminar prepared by the dealer, whose primary purpose is providing educational information concerning tax or estate planning.

The OSC notes that the exemption will also permit a dealer to solicit and accept payments of direct costs relating to such sales communications, investor conferences or seminars.

Under the sales practices rule, a fund manager is permitted to pay a dealer’s direct costs incurred in a co-op marketing initiative if its primary purpose is to promote, or provide educational information concerning, a mutual fund, a fund family, or mutual funds generally. Managers are also permitted to sponsor events attended by representatives of dealers which have the provision of educational information about, among other things, financial planning, investing in securities or mutual fund industry matters as their primary purpose. But they are prohibited from paying direct costs incurred by the dealer where the primary purpose is to provide educational information about tax or estate planning.

The regulator granted relief to the firm, subject to several conditions, including that dealers and reps aren’t induced to sell the firm’s funds, that the materials contain only general educational information about tax or estate planning matters, and the content is approved by the fund firm, among other things.

http://www.oscbulletin.carswell.com/bb/osc/bb/3146/on3146.htm#2_1_8