The Mutual Fund Dealers Association of Canada has published proposed rule amendments to that would implement its version of the client relationship model.

In May 2008 the MFDA published a series of rule amendments that would: clarify the nature of the client/advisor relationship; expand the disclosure provided to clients on account opening; clarify the procedures that firms and reps must follow in order to satisfy their know-your-client and suitability obligations; and clarify the supervisory obligations of dealers for performance reporting.

The proposed amendments are now being republished for comment “as a result of additional changes made in response to comments received and in an effort to ensure that the Client Relationship Model proposals of the MFDA and the Investment Industry Regulatory Organization of Canada minimize differences to the extent possible and achieve the same regulatory objectives.” IIROC also published its proposed version of the CRM on Friday.

The proposed amendments have been approved by the MFDA board, and are now out for a 90-day comment period.

An implementation date will be set later, and the MFDA indicates that transition periods will be adopted for various changes to allow firms time to adapt.

IE