Industry views diverge widely on the future of embedded fees
Both groups are in agreement that eliminating embedded commissions would have serious repercussions for dealers and their advisors
The organization recommends a variety of measures, including capping trailer fees, in response to the CSA’s consultation paper
New MFDA report also finds that a switch to direct-pay arrangements will “have a greater impact on those smaller advisors who are more reliant on DSCs”
The firm is also plans to cap or eliminate the fees and expenses associated with certain series in an effort to simplify its product offering
DSC is an expensive sales option for mutual fund companies
By yearend, firms must report market value, position cost and DSCs