As you know, Mackenzie will stop selling deferred sales charge (DSC) and low load (LL) purchase options as of June 1 in accordance with the Canadian Securities Administrators’ ban.
To help you prepare, we’d like to remind you about the steps Mackenzie will be taking to comply with the new regulations.
Prior to June 1
All Mackenzie DSC and LL funds will be hard-capped at 4:00 pm ET on May 31, 2022.
PACs and other systematic plans administered by Mackenzie for all account designations (client name, nominee, intermediary) will move to the front end (FE) equivalent fund at 0% commission after the close of business on May 27, 2022.
Any systematic plans scheduled for May 28 - 31 will move to the FE version on the evening of May 31.
Transaction handling: June 1 and onward
Transfers-in: Incoming cash transfers intended for DSC/LL funds that are pending at the time of the ban will be invested into the FE equivalent funds (at 0% commission) if the money is received June 1 or later. Advisors will be contacted to inform them of the change.
Purchases: One-time or systematic purchase requests for DSC/LL funds will be rejected.
Switches-in: Switches into DSC/LL funds from FE funds are not permitted, but investors can still switch between different DSC purchase option funds.
We will continue to launch the DSC/LL purchase option after the ban to allow investors access to new Mackenzie funds within their pre-existing DSC schedules. These purchase options will only be available for switches-in and the existing redemption schedules will carry over.
We would like to remind you that Mackenzie will not be notifying investors about these changes, as we rely on dealers to communicate with their own clients directly.
Questions?
If you have questions or need any additional information, please contact your Dealer Relations Account Manager directly or send an email to drelations@mackenzieinvestments.com.
Thank you for your continued support of Mackenzie Investments.
