June 21, 2018

In a rare outbreak of common sense, the Canadian Securities Administrators have decided not to ban trailer fees, but spoiled it by adding a lot more paperwork:

The Canadian Securities Administrators (CSA) has decided not to ban embedded commissions after all. Instead, the group of provincial and territorial regulators have proposed new rules for dealers and financial advisors to address any potential conflicts of interest in clients’ best interest or avoid them altogether, as well as to eliminate all forms of deferred sales charges (DSCs).

In addition, the CSA has decided to prohibit dealers that don’t make a suitability determination when selling mutual funds, such as discount brokerages, from receiving trailing commissions.

The long-awaited decisions were delivered on Thursday in a staff notice outlining these measures and in a 120-day comment period proposing amendments to registrant conduct provisions. (The CSA stated in the staff notice that it anticipates publishing a notice and request for comment in September.)

Although the CSA’s staff notice points out that “regulatory action is required to mitigate the inherent conflicts of interest associated with embedded compensation and to ensure the investor’s interest is paramount,” the regulators are instead proposing enhanced conflict of interest mitigation rules and guidance for dealers and advisors on all securities because these conflicts “are not unique to mutual funds.”

Thus, as part of the proposed amendments to the registrant conduct provisions, dealers and advisors will be required to: address conflicts of interest in clients’ best interest, including those resulting from compensation arrangements and incentive practices; put clients’ interests first when making a suitability determination; and do more to clarify for clients what they should expect from registrants.

HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices

Values are provisional and are finalized monthly
Index Mean
Current
Yield
(at bid)
Median
YTW
Median
Average
Trading
Value
Median
Mod Dur
(YTW)
Issues Day’s Perf. Index Value
Ratchet 0.00 % 0.00 % 0 0.00 0 -0.5779 % 3,009.7
FixedFloater 0.00 % 0.00 % 0 0.00 0 -0.5779 % 5,522.6
Floater 3.34 % 3.54 % 68,900 18.42 4 -0.5779 % 3,182.7
OpRet 0.00 % 0.00 % 0 0.00 0 -0.0398 % 3,172.4
SplitShare 4.63 % 4.67 % 71,862 4.98 5 -0.0398 % 3,788.5
Interest-Bearing 0.00 % 0.00 % 0 0.00 0 -0.0398 % 2,955.9
Perpetual-Premium 5.64 % -5.83 % 60,179 0.08 9 0.0969 % 2,882.7
Perpetual-Discount 5.38 % 5.55 % 62,268 14.53 26 -0.0005 % 2,963.6
FixedReset 4.32 % 4.67 % 153,247 5.67 106 -0.1768 % 2,536.7
Deemed-Retractible 5.19 % 5.80 % 69,563 5.54 27 -0.1775 % 2,944.1
FloatingReset 3.05 % 3.72 % 32,686 3.43 9 -0.0897 % 2,797.7
Performance Highlights
Issue Index Change Notes
IFC.PR.A FixedReset -1.22 % YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 19.51
Bid-YTW : 7.83 %
Volume Highlights
Issue Index Shares
Traded
Notes
BNS.PR.H FixedReset 104,445 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-01-26
Maturity Price : 25.00
Evaluated at bid price : 26.20
Bid-YTW : 3.65 %
BNS.PR.E FixedReset 54,166 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-04-25
Maturity Price : 25.00
Evaluated at bid price : 26.50
Bid-YTW : 3.59 %
PWF.PR.Q FloatingReset 46,000 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-06-21
Maturity Price : 21.35
Evaluated at bid price : 21.35
Bid-YTW : 3.33 %
TRP.PR.K FixedReset 43,781 YTW SCENARIO
Maturity Type : Call
Maturity Date : 2022-05-31
Maturity Price : 25.00
Evaluated at bid price : 25.42
Bid-YTW : 4.53 %
SLF.PR.I FixedReset 42,460 YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.05
Bid-YTW : 4.90 %
NA.PR.G FixedReset 38,100 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-06-21
Maturity Price : 23.13
Evaluated at bid price : 24.99
Bid-YTW : 4.79 %
There were 14 other index-included issues trading in excess of 10,000 shares.
Wide Spread Highlights
Issue Index Quote Data and Yield Notes
NA.PR.W FixedReset Quote: 23.09 – 23.44
Spot Rate : 0.3500
Average : 0.2034

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-06-21
Maturity Price : 22.70
Evaluated at bid price : 23.09
Bid-YTW : 4.66 %

NA.PR.S FixedReset Quote: 23.33 – 23.67
Spot Rate : 0.3400
Average : 0.2233

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-06-21
Maturity Price : 22.75
Evaluated at bid price : 23.33
Bid-YTW : 4.78 %

W.PR.K FixedReset Quote: 25.80 – 26.18
Spot Rate : 0.3800
Average : 0.2860

YTW SCENARIO
Maturity Type : Call
Maturity Date : 2021-01-15
Maturity Price : 25.00
Evaluated at bid price : 25.80
Bid-YTW : 4.34 %

SLF.PR.E Deemed-Retractible Quote: 21.25 – 21.49
Spot Rate : 0.2400
Average : 0.1573

YTW SCENARIO
Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 21.25
Bid-YTW : 7.43 %

TRP.PR.E FixedReset Quote: 22.52 – 22.80
Spot Rate : 0.2800
Average : 0.2018

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-06-21
Maturity Price : 21.95
Evaluated at bid price : 22.52
Bid-YTW : 4.92 %

TRP.PR.D FixedReset Quote: 22.85 – 23.11
Spot Rate : 0.2600
Average : 0.1833

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2048-06-21
Maturity Price : 22.16
Evaluated at bid price : 22.85
Bid-YTW : 4.86 %

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