Information on how HSBC Global Asset Management (Canada) Limited is complying with the Canadian Securities Administrators’ prohibition on the payment of trailing commissions to order-execution-only dealers

As of June 1, 2022, regulatory changes will prevent investment fund managers – including HSBC Global Asset Management (Canada) Limited – from paying trailing commissions to order-execution-only (OEO) dealers who do not make a suitability determination, including self-directed brokerages.

To comply with the regulatory changes, we launched a D series of the HSBC Mutual Funds and a DT series of the HSBC Monthly Income Fund and the HSBC U.S. Dollar Monthly Income Fund. The D and DT series do not pay any sales charge or trailing commission to dealers.

On April 22, 2022, all existing unitholders of HSBC Mutual Funds holding Investor, Investor T, Premium or Premium T series units in OEO accounts will be automatically switched to the equivalent D or DT series of the same fund, as applicable. There is no cost associated with this switch.

The attached chart shows the HSBC Mutual Funds and the equivalent D or DT series impacted unitholders will be switched into. You can find information about the D or DT series of the HSBC Mutual Funds in the Fund Facts and Simplified Prospectus, available on SEDAR or on the Fund information and regulatory reports section of our designated website.

Have questions?

If you are an individual investor holding HSBC Mutual Funds in your self-directed account, you should direct your questions to your self-directed brokerage firm.

If you have any questions, please contact us at toll-free: 1-888-390-3333 or by email: global_asset_management@hsbc.ca.