With the new Client Relationship Model (CRM) reforms (National Instrument 31-103 Cost Disclosure, Performance Reporting and Client Statements) soon to be adopted, the Mutual Fund Dealers Association of Canada (MFDA) is anticipating its own reforms, and contemplating potential implementation issues.
The MFDA published a bulletin Tuesday, noting that the Canadian Securities Administrators’ (CSA) new cost disclosure, performance reporting, and client statement amendments take effect on July 15; with transition periods of one, two or three years for most of the new requirements.
The bulletin notes that the MFDA rules will be amended to ensure that they are consistent with the CSA’s new requirements.
The self-regulatory organization also says it expects that dealers may encounter operational and implementation issues with the new requirements, and may have questions in preparing to comply with them.
Therefore, in terms of possible systems issues, it says that its staff will be meeting with industry service providers to discuss implementation issues. But, it also wants to hear from dealers directly about possible concerns from their perspective. So, it is asking firms to submit questions they may have on specific aspects of the amendments that may need to be clarified; and, it plans to seek clarification from the CSA on the questions it gets.
MFDA member firms may submit questions
respecting implementation issues by email to Membership Services.