Securities regulators have granted an exemption from the mutual fund sales practices rule to allow TD Asset Management Inc. to help fund conferences to be put on by the Independent Financial Brokers of Canada (IFB).
The Ontario Securities Commission has granted relief subject to certain conditions. The exemption permits TD Mutual Funds to pay a portion of the cost incurred by the IFB in organizing its regional summits to be held in April, May and November this year, and other conferences and seminars organized and presented by IFB in the future.
Generally, the sales practices rule prohibits a mutual fund company from sponsoring the costs or expenses relating to a conference, seminar or course that is organized and presented by trade or industry association.
However, it provides an exemption to permit members of the organization of a mutual fund to sponsor conferences in accordance with certain conditions:
- the primary purpose is the provision of educational information about financial planning, investing in securities, mutual fund industry matters and matters relating to mutual funds generally;
- the firm will not pay more than 10% of the total direct costs;
- the selection of a representative of a participating dealer to attend will be made exclusively by the participating dealer, uninfluenced by the fund company;
- and the summits will be held in Canada.