IFIC Mutual Funds Licensing Practice Exam · Question
Effective June 1, 2022, what is the primary regulatory implication for dealers regarding mutual funds with a deferred sales charge (DSC) option?
As of June 1, 2022, regulatory changes prohibit dealers from making new purchases of mutual fund securities that are subject to a deferred sales charge option,
Start free practice for IFIC Mutual Funds Licensing Practice Exam
355 questions · no signup required · 40 free questions per day
Question: Effective June 1, 2022, what is the primary regulatory implication for dealers regarding mutual funds with a deferred sales charge (DSC) option?
Answer options:
- DSC options can only be offered to institutional investors. ✅ Dealers are prohibited from making new purchases of mutual fund securities that are subject to a DSC option.
- Clients can still initiate new DSC purchases, but the redemption fee schedule has been standardized.
- The DSC option is replaced with a trailing commission for all new purchases.
Correct answer: Dealers are prohibited from making new purchases of mutual fund securities that are subject to a DSC option.
Explanation: As of June 1, 2022, regulatory changes prohibit dealers from making new purchases of mutual fund securities that are subject to a deferred sales charge option, effectively phasing out new DSC sales, as per national instruments (e.g., NI 81-101 and 81-102).
Start free practice for IFIC Mutual Funds Licensing Practice Exam
355 questions · no signup required · 40 free questions per day
More about IFIC Mutual Funds Licensing Practice Exam
More for IFIC Mutual Funds Licensing Practice Exam candidates
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free IFIC Mutual Funds Licensing Practice Exam Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.