The Mutual Fund Dealers Association is proposing amendments to its rule which aim to clarify the obligations of dealers and reps with respect to conflicts of interest.

The proposed amendment is designed to help ensure that dealers and reps are fully aware of their responsibilities with respect to conflicts of interest. It will clarify that the requirements of the rules apply equally to situations where reps are engaged in outside business activity or personal dealings with clients where the activity or transaction that gives rise to the conflict or potential conflict is not considered dealer business.

The proposed amendments will also assist dealers in meeting their obligations under the rule regarding conflicts of interest by expressly requiring reps to report conflicts or potential conflicts to the dealer.

The amendments are out for a 30 day comment period.