Principal distributors are expressly permitted to engage with multiple fund families as “participating dealers” and, as contemplated in the CSA’s Proposed Amendments to the Principal Distributor Model, are permitted to act as principal distributors for more than one fund within the same mutual fund family. 

Dealers are generally permitted to offer a mix of proprietary and non-proprietary products to investors. 

There is no reasonable basis to distinguish these accepted business practices from the practice of engaging with multiple fund families as a principal distributor. 

Under any of these structures, principal distributors and their representatives are permitted to offer products from different mutual funds with the potential for any conflict of interests being addressed through existing regulatory requirements and controls.

See IIAC’s recommendations for renewals to this model here.