Bylo, it's true that most fund co's are also dealers purely for institutional or internal purposes. However, while I agree with the concept of having low fee series units of all funds available at discount brokers I strongly disagree with actually following through with this.
Right now, if you restrict yourself to cheap no load funds, it's very difficult to make a really poor choice. In fact, almost all of them range from pretty good to excellent IMO. I'm talking about Beutel Goodman, Leith Wheeler, Mawer, Steadyhand, PH&N. Not every fund in this group is fantastic and I wouldn't recommend every one but it's really tough to go way wrong with any of these firms' funds.
If regulators unleash the entire fund universe in a series of funds equivalent to the F-series, investors will initially be thrilled but it will be much tougher to find good funds - i.e. much much easier to make stupid choices - thereby deteriorating the DIY investor experience and return potential.
Read
The Paradox of Choice (thanks to NormR for giving me this excellent book years ago) for an extensive explanation of why this is the case. In short, more choice = more difficulty in making decisions = less satisfaction [and I would argue = lower investment returns over time].
scomac, Mr. DeGoey's fee IIRC is in the range of 1.4% for the first $250k or $500k and scaling down significantly to 0.75% or something like that thereafter. So a high fee for that first tier but quite reasonable afterwards. But fair point - one I've made lots of times - that even at 1.4% the all in after tax cost brings you right up to the load mutual fund MER levels - thereby leaving no fee advantage for the end client.