Securities regulators had approved proposed amendments to the governance by-laws of the Mutual Fund Dealers Association of Canada (MFDA).
It was announced in Thursday’s OSC Bulletin that the Ontario Securities Commission (OSC) approved the MFDA’s amendments to broaden the definition of who can serve on its board as public director; and, increasing industry director participation in its audit committee.
The notice announcing the approval indicates that the amendments align the MFDA’s governance standards with current practices among self-regulatory organizations, and increases the number of qualified individuals who meet the requirements to act as public directors. Whereas, the increase of industry representation on the audit committee will give it greater awareness of mutual fund dealer industry issues and regulatory requirements.
The proposed changes were published for comment last November, and it received four comment letters. Three of the four objected to the proposal to eliminate many of the restrictions on individuals that qualify as public directors. However, it is proceeding with that change anyway, noting that the previous definition is too prescriptive and restrictive.
Other comments suggested that more investors or advisors should serve on the MFDA board. In response, the MFDA notes that investors could serve as public directors, and that solicits investor input both in policymaking, and that its staff meets with investor associations. As for advisors, it says that their interests are served through their dealers and their own industry organizations.