As a result of the Canadian Council of Insurance Regulators (CCIR) announcement in early 2022 banning deferred sales charge (DSC) options offered in segregated fund contracts, we will be proceeding with the capping of back-end and low-load sales charge options on our segregated fund platform on May 26, 2023.
Important dates
- On May 26, 2023, at 4 p.m. ET, new purchases, including pre-authorized contributions (PACs), RESP grants and subsequent deposits, will no longer be allowed into these sales charge options.
- Existing Manulife-administered money-in systematic plans such as PACs, RESP grants or redirected GIA maturities that invest in back-end (BE) or low-load (LL) sales charge options will be moved to the front-end (0% commission) or no-load (no upfront commission) version of the same fund on May 26, 2023.
- Deposit requests, including PAC requests received after May 26, 2023, at 4 p.m. ET, will be automatically redirected into the front-end (0% commission) or no-load (no upfront commission) version of the fund until June 30, 2023.
- After June 30, 2023, any deposit requests received into back-end or low-load funds will result in a delay in processing until we receive alternate fund allocations.
Alternate sales charge options
Advisors may be able to choose an alternate sales charge option for clients with existing money-in systematic plans. We’ll provide advisors with a list of their clients (as of March 14, 2023) who have systematic PACs, RESP grants, or redirected GIA maturities deposits that invest in back-end or low-load funds, along with a table to indicate which products are eligible for alternate sales charge options. We’ll post this list to their Repsource Secure Inbox on or about April 25, 2023. Instructions should be submitted by May 15, 2023, at 4 p.m. ET to be processed before the capping.
The full article is posted to Repsource.