The Mutual Fund Dealers Association of Canada (MFDA) will focus on the growing role of technology in the investment industry, strengthening advisor proficiencies and professionalism and updating regulatory requirements, when necessary, as part of its new strategic plan, released on Tuesday.
The MFDA’ 2018-2022 Strategic Plan aims to address the “drivers of change” that are affecting its members, including “new policy reforms within the securities industry, proposed changes to the regulatory framework in Canada, an aging Canadian demographic and, of course, the development of new technologies.”
The MFDA’s first strategic goal for the years ahead is to support innovation among members. To do so, the self-regulatory organization (SRO) plans to engage in an “innovation outreach to encourage discussion and collaboration on the use of new products, services and technology,” the strategic plan states. Furthermore, the SRO will develop a cybersecurity plan to offer guidance on best practices as well as modernize its rules so that they are aligned with the technological innovations taking place within the industry.
“We will assess our regulatory requirements to determine whether there are any that unnecessarily impede innovation as well as to consider whether there are areas where new standards might be required,” the MFDA states in its strategic plan. “We will enhance our proactive approach of providing assistance and communicating learnings to allow Members to dialogue around new business initiatives.”
The second strategic goal is to collaborate and share information with stakeholders as well as engage in educational initiatives to strengthen advisor proficiencies and professionalism. A key imitative among those priorities is to establish a continuing education requirement for MFDA-licensed advisors.
“We will focus on providing members and approved persons with practical training, guidance and education on key regulatory topics and issues they face in their day-to-day operations,” the MFDA’s strategic plan says. “We will also consider new methods to deliver training to advisors and encourage best practices to improve the client experience.”
The final strategic goal is for the MFDA to evaluate and improve its internal processes as well as assess its regulatory requirements to ensure they continue to be relevant. To do that, the SRO plans to explore alternatives to improve the transparency for investors of the costs involved in investing in mutual funds as well as review its rulebook to improve clarity, ease of use and relevance. Another key initiative within this goal is to enhance staff competencies and attract expert staff.
“We must ensure that we continue to have the right people in the right positions and that their knowledge and expertise keeps pace with the change and evolution occurring in the industry,” the MFDA’s strategic plan states. “Attracting and retaining highly professional and qualified staff and ensuring that we have the appropriate talent and capability in-house is critical to fulfilling our mandate and accomplishing our goals. We will continue to invest in our staff to ensure that they have the skills, knowledge, tools and processes to effectively perform their duties.”
The SRO engaged in an extensive consultation process with a range of stakeholders including MFDA members, staff and management and board of directors as well as representatives of the Canadian Securities Administrators, industry and investor associations, to assist in identifying the priorities and areas of focus for the new strategic plan.