Mutual fund fees are an “unnecessary and extra burden” — especially for seniors — and the Ford government is overlooking the concerns of average investors by not banning them, says the provincial NDP’s finance critic.
“This government recently made a decision to ignore the concerns of both investors, investment regulators and seniors’ advocate groups such as CARP (Canadian Association of Retired Persons), who called for the banning of deferred sales charges on mutual funds,” said New Democrat MPP Sandy Shaw in the legislature Tuesday.
The government recently announced that it did not agree with a Sept. 13 proposal from the Canadian Securities Administrators to ban deferred sales charges on mutual funds, a recommendation made after six years of consultations. Deferred sales charges are fees paid by customers if they move their money out of a mutual fund before a certain time period, usually five to seven years, and are paid regardless of how a fund performs.
The national securities administrators had buy-in from all provincial regulators, including the Ontario Securities Commission, to put an end to those, as well as upfront commissions.
“People across our province struggle to save and put a little money aside for their retirement, and these deferred charges are an unnecessary and extra burden on these people,” said Shaw. “Why is the government ignoring the voices of seniors and people who are saving for their retirement?”