The Mutual Fund Dealers Association of Canada (MFDA) says it is reviewing the guidance it has issued over the years in order to streamline it, and clarify the regulator’s expectations.
The MFDA said Thusday that it is reviewing its notices and guides, which are issued to help dealers interpret the intent of the self-regulatory organization’s rules, and aid compliance with those rules.
The review aims to ensure that the distinction between rules and guidance is clear; to update the guidance so that it reflects current MFDA rules and securities legislation; and, to eliminate notices that are no longer needed.
The regulator says that its staff made presentations to dealers earlier his year, which set out the regulatory effect of various policy instruments, and the planned changes as part of the review. “Once staff has completed its review, a communication will be issued to provide an update and briefly summarize the nature of the changes,” it notes, adding that it does not view the changes as substantive.
Regulator conducts client disclosure sweep
Separately, the MFDA also said that it is in the midst of a compliance sweep focusing on client disclosure. The MFDA reports that, in March, fund dealers were asked to attach a copy of their current relationship disclosure document, complaint handling summary, and client complaint information form, as part of its annual questionnaire.
“Staff will be reviewing the documents received and will be communicating with members individually to discuss any issues identified,” it says. It also intends to report common findings, and publish further guidance in this area.