The Investment Industry Association of Canada is calling on securities regulators to allow investment dealer reps and mutual fund dealer reps to incorporate.

In a comment letter to the regulators, the IIAC notes that it generally supports the Mutual Fund Dealers Association of Canada’s request for an extension to the suspension of its rule outlawing the use of personal corporations until Dec. 31, 2010.

“However, to promote consistency and a level playing field in the Canadian financial services industry, any changes to MFDA [rules] should be considered along with proposed changes to Investment Industry Regulatory Organization of Canada rules in order to create a model that can operate for both the mutual fund and securities industries in a seamless and effective manner,” it says.

The IIAC recommends that a committee be established with representatives from the MFDA, IIROC, the IIAC, the Canadian Securities Administrators and the industry “to finalize, in a timely manner, a rule that achieves an appropriate regulatory, corporate and tax structure which would permit all advisors to incorporate. “

“We strongly believe and submit that all advisors should be provided with the same opportunity to have the flexibility of using a corporation as a permitted business structure in a manner that permits them to take advantage of all the benefits that such a structure has to offer,” it adds.