The Canadian Securities Administrators have published final amendments to the principal distributor model for the distribution of mutual fund securities. The changes clarify that a dealer may act as a principal distributor only for mutual funds within the same mutual fund family, while adding new disclosure requirements for principal distributor arrangements and related compensation. A principal distributor is a dealer with an exclusive right to distribute mutual fund securities or a feature that gives it a material competitive advantage in that distribution. The amendments do not prevent a principal distributor from also distributing mutual fund securities as a participating dealer for multiple mutual fund families. Transparency measures require disclosure of principal distributor arrangements and related compensation in the prospectus, fund facts document and annual report on charges and other compensation. The final package includes amendments to National Instrument 31-103, National Instrument 81-101, National Instrument 81-102 and National Instrument 81-105, along with related companion policies.
Canadian Securities Administrators2026-06-11
Canadian Securities Administrators finalize principal distributor amendments for mutual fund families and compensation disclosure
The Canadian Securities Administrators have issued final amendments to the mutual fund principal distributor model. Dealers may act as principal distributors only within the same mutual fund family, while remaining able to distribute for multiple families as participating dealers. The changes also require disclosure of principal distributor arrangements and related compensation in key investor documents.