We are compensated directly from the financial institution for these products.
RRSPs/Other Registered Plans
Investment Funds in registered plans are generally offered on either a 'Front-End' or 'Back-End' load basis, primarily determined through our planning discussions.
Funds which are sold on 'Front-End' (FEL) sales charge basis require the deduction of a sales commission from the amount of your purchase order. The net amount of your investment is then invested in securities of the fund at the net asset value. Funds which are sold on ‘Back-End’ option require no deduction from the amount of your purchase order at the time of purchase, but your investment may be subject to a redemption charge if the securities which you purchased are redeemed within a specified time after purchase. Under the ‘Back-End’ method of purchase, sales commission is paid to us at the time of purchase arranged by the fund sponsor.
We also receive trailer fee for funds recommended in registered plans which is generally paid to us for ongoing services to the clients so long as our clients’ remain invested in the funds.
Switches within the same investment fund family are all generally fee-free