Proposed changes to its governance processes were approved at a special meeting held October 2, the Mutual Fund Dealers Association of Canada said Monday.

The MFDA reports that its members approved the amendments to its by-laws by the requisite two-thirds of votes cast, approving changes that were enacted by the board on August 18, following recommendations made by the MFDA Task Force on Governance Issues.

As a result, the board will increase from 13 to 15 directors; the definition of “public director” will be made more flexible; candidates for public director positions will be subject to a mandatory one-year cooling off period; directors will be subject to a maximum tenure of four two-year terms of office; and, two of the seven industry directors will be selected directly by members through an annual nomination and balloting process.

The amendments will be effective on a date to be determined by the board, provided that applicable regulatory and corporate law approvals are obtained.

IE