The Mutual Fund Dealers Association reported that amendments to its rules concerning conflicts of interest have been approved by both the MFDA’s board and the recognizing securities commissions.

The amendments, which are effective immediately, clarify that the requirements of the MFDA rules are intended to apply to any conflicts of interest that arise between the interests of the member or the rep and the interests of the client regardless of whether they relate specifically to MFDA member business.

The amendments will also assist dealers in meeting their obligations under the rule with respect to conflicts of interest by expressly requiring reps to report conflicts or potential conflicts to the dealer, the MFDA notes.

MFDA staff intends to issue a Member Regulation Notice to provide further clarification and guidance on the rule.