The New Brunswick Securities Commission (NBSC) has approved in principle Advocis’ position that a corporation controlled by an individual registered advisor may receive payments of commissions and fees from the advisor’s registered dealer.
“I was pleased that we could help secure this change on behalf of financial advisors in New Brunswick,” stated Steve Howard, president and CEO of Advocis, in a release. “It was a wise decision all around by the NBSC. For advisors, it ensures that they are on equal footing with their colleagues in the other provinces that currently allow mutual fund payments of commissions into corporations. For their clients, it ensures enhanced continuity in dealing with their financial affairs.”
Advocis has long advocated for this critical change to advisor incorporation through constructive dialogue with the NBSC.
Based on the submissions presented by Advocis and other industry stakeholders, the NBSC determined that to permit the payment of commissions or fees to a corporation that is not registered is not “prejudicial to the public interest.”
The NBSC’s decision was released at the same time as a decision to suspend MFDA Rule 2.4.1, which requires payment of commissions to individuals only. This means that advisors can now use corporate business structures for mutual fund business activities.
Advocis applauds NBSC decision on advisor incorporation
Regulator approves payment of commissions into corporations
- By: IE Staff
- June 4, 2008 June 4, 2008
- 07:30