Who gets deferred sales charge?

Zoomer | January 1st, 2006

Q –  I am considering switching some or all of my RRSP mutual funds (DSC) from Dundee to Royal Bank.  If I were to later sell some of the funds (originally bought via Dundee), who would receive the deferred sales charges owing B Dundee (the institution through which the funds were originally purchased) or Royal Bank (the institution that would handle the sale)?


If Royal Bank, is it possible that, since I have transferred my portfolio to them, they might give me a “discount” on the deferred sales charges owing? – J.B.


A – The deferred sales charges actually go to the mutual fund company, which paid the Dundee sales person a commission at the time you made the purchase. Royal Bank was not a partner to that deal and therefore derives no benefit from the sale. – G.P.