The Mutual Fund Dealers Association of Canada does not intend to appeal a decision by a hearing panel of the British Columbia Securities Commission, which found problems with the MFDA’s proxy solicitation process.

In a bulletin published Thursday, the MFDA said that its board and governance committee have carefully considered the decision, which took issue with the proxy solicitation process it used before a special meeting to consider proposed changes to its governance by-law in October 2009.

“While the MFDA is disappointed with aspects of the decision and does not agree with some of the analysis and findings of the panel, it has decided that it is not in the interests of the public or the MFDA and its members to seek a further review or an appeal of the decision,” the MFDA says.

Instead of appealing the decision, the MFDA says that it will refine its proxy solicitation processes in accordance with the intent of the decision in consultation with the BCSC and the other provincial regulators. The MFDA notes that it has already implemented a number of the decision’s directions.

In addition to the problems it found with the MFDA’s proxy process, the BCSC’s panel also directed that the by-law amendments that were passed at the meeting in question should not be implemented until there is a further vote by MFDA members that complies with the decision.

On that front, the MFDA says that its board intends to have its governance committee review all aspects of the by-law in question, in consultation with MFDA members, and it will make recommendations to the board as to whether all or part of the provisions of the by-law should be enacted and approval sought.

IE