IFIC Mutual Funds Licensing Practice Exam · Question
Which of the following statements accurately reflects the current status of Deferred Sales Charge (DSC) options for mutual funds in Canada?
Effective June 1, 2022, new purchases of mutual funds using the Deferred Sales Charge (DSC) option are prohibited across Canada by CIRO (formerly CSA) rules, th
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Question: Which of the following statements accurately reflects the current status of Deferred Sales Charge (DSC) options for mutual funds in Canada?
Answer options:
- DSC purchase options are permitted only for registered accounts like RRSPs and TFSAs. ✅ New purchases of mutual funds using the DSC option were prohibited as of June 1, 2022.
- Existing mutual fund investments held under a DSC schedule are automatically converted to front-end load options.
- The prohibition applies only to mutual funds, and not to segregated funds offered by insurance companies.
Correct answer: New purchases of mutual funds using the DSC option were prohibited as of June 1, 2022.
Explanation: Effective June 1, 2022, new purchases of mutual funds using the Deferred Sales Charge (DSC) option are prohibited across Canada by CIRO (formerly CSA) rules, though existing DSC holdings are allowed to run their course.
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