From the desk: Coming in June!

Hey there! Trevor here with a dad joke and financial tip.

Something exciting is happening in Ontario this June!

What is it you ask?

The ban on Deferred Sales Charges will come into effect as of June 1, 2022.

Why is this exciting?

Without proper disclosure, some advisors put their clients into what is called a DSC series of mutual funds. This pays the advisor upfront from the fund company but will put the client on the hook if they ever need to take some of the money out in the first 6-7 years. Interestingly enough, all the mutual fund companies I deal with have stopped selling DSC over the last few years, but there are some that are hanging on until the bitter end.

I really wonder why this is?

I just did a portfolio review for a client and found that their regular contributions are still going into a DSC series of funds. Is there anything wrong with this? Not if there was proper disclosure, and the fund companies that they are dealing with are still allowing it.

I must admit, when I got into this industry I was taught that this is where investments go. I did as was suggested to me. However, I realized that there were (and are) other ways to do it, and as long as the client was fully aware of the fees that they would have to pay should they require the money, then it was ok. Just don’t be sneaky about it.

One of the biggest issues of companies that were against the DSC ban was that it would hurt the small investors, that no advisor would deal with them because they weren’t making any upfront money from them.

Baloney.

At least in my opinion.

Everybody counts, or nobody counts.

I don’t have minimum account requirements.

I will work with people who want to work with me, no matter what they have or want to invest.

If you want to work with me, and we have a good fit, then?I will be here to work with you.

Stay well,

Trevor