MFDA launches outreach program

“We use what we learn from such engagement to inform our regulatory approach and identify ways to protect investors that are more practical, tailored and effective,” the MFDA states in a bulletin announcing the program.

These kinds of efforts also produce, “constructive feedback about the extent to which our regulatory requirements are achieving their goals and about potential changes that would better serve investors and promote strong capital markets,” the bulletin adds.

To start, the SRO will be contacting fund dealers directly to determine the best approach to enhanced outreach (from focus groups and surveys to direct meetings with MFDA staff or outside consultants) and to assess their interest in examining a variety of issues.

“Issues for discussion may include clarification of existing regulatory requirements, input from members on certain MFDA requirements that may require amendment, requests for educational materials in specific topic areas, adoption of new technologies,” the bulletin states.

In particular, the MFDA seeks to increase engagement with fund dealers on the issue of innovation. To that end, it’s calling on dealers with plans to adopt novel technology to arrange a demonstration, or to meet to discuss their plans with the SRO directly, with the aim of facilitating industry innovation.

The SRO also seeks to bolster engagement with investors. “We are committed to finding ways to improve and enhance our collaboration and communication with investors, investor advocates, and organizations involved in investor education, outreach and the protection of vulnerable persons,” the bulletin says.

To that end, the MFDA plans to broaden the range of investors and investor advocates that it engages with, and to “proactively engage with investor advocates” as part of its policymaking process.

Additionally, the SRO intends to develop more content to help inform investors, and to improve how they are able to analyze and act on information about investing.

“The MFDA is committed to engaging in open communication and collaboration with all our stakeholders to assist us in achieving our regulatory objectives,” says Mark Gordon, president and CEO of the MFDA, in a statement.

“This outreach initiative will help us in maintaining our knowledge of industry trends, new technology, products and business models to ensure that our regulatory requirements and approach reflect the nature and reality of the changing financial services industry. In addition, this initiative will assist us in identifying risks that pose harm to investors and ways to protect investors that are practical, appropriate and effective,” he adds.