The Globe and Mail reports in its Thursday edition that securities regulators are proposing a sweeping change in the way mutual funds are sold, saying they will launch a public consultation on a plan to ban trailer fees. The Globe's Janet McFarland writes that the Canadian Securities Administrators said Wednesday that it will publish a consultation paper in the fall, seeking advice on how to move Canada toward a model that would ban embedded commissions in favour of requiring investors to pay fees directly for advice. Britain and Australia have already banned the use of trailer fees, which are fees paid to advisers annually as long as their clients hold a mutual fund. Many customers do not know that their advisers receive the fees, which can serve as an inducement to recommend certain funds over others. Ontario Securities Commission vice-chairman Grant Vingoe said regulators have not made a final decision to ban trailer fees, but are signalling that their focus is now on that option. The Investment Funds Institute of Canada urged regulators on Wednesday to delay issuing the consultation paper until the lobby group assesses the impact of other reforms that are under way, including new disclosure rules.