NB Securities Commission Approves Payment of Commissions into Corporations
The New Brunswick Securities Commission (NBSC) has approved in principle Advocis� position that a corporation controlled by an individual registered advisor may receive payments of commissions and fees from the advisor�s registered dealer.
�I was pleased that we could help secure this change on behalf of financial advisors in New Brunswick,� said Steve Howard, President and CEO of Advocis. �It was a wise decision all around by the NBSC. For advisors, it ensures that they are on equal footing with their colleagues in the other provinces that currently allow mutual fund payments of commissions into corporations. For their clients, it ensures enhanced continuity in dealing with their financial affairs.�
Advocis has long advocated for this critical change to advisor incorporation through constructive dialogue with the NBSC. To view Advocis� submission, go to the following web address: www.advocis.ca/regulatoryaffairs/archives07/subs07/MFDA-Recog-NB-ja12-07.pdf
Based on the submissions presented by Advocis and other industry stakeholders, the NBSC determined that to permit the payment of commissions or fees to a corporation that is not registered is not �prejudicial to the public interest.�
The NBSC�s decision was released at the same time as a decision to suspend MFDA Rule 2.4.1, which requires payment of commissions to individuals only. This means that advisors can now use corporate business structures for mutual fund business activities.
Advocis is a national professional association that prepares, promotes and protects financial advisors in the public interest. We do this by providing a professional platform including career support, designations, best practices direction, education, timely information and professional liability insurance. This strengthens the relationship of trust and respect between financial advisors and their clients, the public, and government. The Association�s website is . www.advocis.ca.