Mutual Funds And Scholarship Plans
A dealer cannot act in a way that encourages advisors to recommend securities from one mutual fund over another. The dealer must offer the advisor the same compensation for all mutual fund groups.
The advisor must maintain professional independence and remember that the client’s best interests must always take precedence.
Training and promotional activities, conferences
An advisor may attend conferences or seminars organized and paid for by a mutual fund or a third party to provide training on financial planning, investing in securities, or questions about the mutual fund or the mutual fund sector, under certain conditions.
An advisor may also accept promotional non-pecuniary benefits of modest value from a mutual fund, such as:
- pens, calendars, t-shirts, hats, mugs, paper weights, golf balls
They may also enjoy the following non-pecuniary benefits following an activity organized by a mutual fund:
- meals, drinks, or tickets to concerts, theatrical performances, sporting events, golf tournaments and other similar events
The advisor must refuse to accept the benefits offered if they are frequent or of high value, because a reasonable person may think that their advice is not objective. They must maintain their independence.
The advisor must consult their dealer to obtain more details on applicable conditions.