Effective June 1, 2022, a Canada-wide ban on new purchases into DSC and LL versions of mutual funds will take effect.  Some fund companies will be implementing the ban earlier – for example, the last day to purchase DSC and LL funds with CI Investments is May 13, 2022.

We understand that this may be a significant change for some of our representatives, so we have provided some important information, reminders, and guidelines below: 

  • Purchases into DSC and LL funds will no longer be permitted as of June 1, 2022
  • Some fund companies will be ending purchases into these load types prior to June 1st
  • For clients with systematic investment plans into DSC or LL funds, most fund companies will automatically move these systematic investments into the FE version of the same fund
  • Investments made into DSC and LL funds prior to June 1st will remain in these funds
  • Investments made into DSC and LL funds will keep the same redemption schedule as established in the prospectus and Fund Fact, based on the date of the last purchase into the fund
  • Redemptions made in DSC and LL funds prior to the end of the redemption schedule will be subject to redemption fees.  Fees will be charged on a declining scale, per the fund prospectus/Fund Fact document

Options that should be considered prior to selling investments and transferring the proceeds in cash:

  • Can the investments be transferred in kind and held until the DSC and/or LL schedule has ended, at which point the investments can be sold and no fees will be incurred by the client
  • If the investments cannot be transferred in kind (e.g. they are proprietary funds), is it in the best interest of the client to leave them with their current dealer until they have fully matured and can be redeemed without incurring DSC/LL fees

For information on how a specific fund company will be handling the ban on DSC and LL funds, please reach out to your Wholesaler directly.

Please contact your Regional Compliance Officer if you have any questions or need additional guidance.

Cheryl Hamilton
Vice President Risk Management and Chief Compliance Officer