The Mutual Fund Dealers Association of Canada has published the final report from a task force it convened to examine governance issues at the regulator.

On Tuesday, the MFDA’s board of directors approved the final version of the report and endorsed its recommendations. The primary recommendation is the adoption of a new director nomination process that will ensure smaller firms have a bigger say in electing directors. “The practical result of this process will be that small/medium size firms will be assured a determinative voice in selecting a portion of the industry directors because they represent a large majority of the membership,” it says.

It is also proposing to increase the board’s size to 15 directors, add a one-year cooling-off period for public directors, create four two-year terms for all directors, and make the definition of public directors more flexible.

“The director nomination procedures, the criteria for director selection and the opportunity for all members to participate in it will be enhanced and clarified — and will be made transparent to members and the public,” the report adds.

The MFDA is holding a special meeting on October 2, at which the proposed changes will be considered, in the hope that the reforms can be made in time for the 2009 annual meeting, which is slated for December.

IE