Securities regulators have approved amendments to the by-laws governing the mutual fund industry’s contingency fund, extending liability protection to the fund, as well as codifying the relationship between fund dealers and the fund.

In Friday’s OSC Bulletin, the Ontario Securities Commission reports that it, and several other regulators, have approved proposed amendments to the by-laws of the Mutual Fund Dealers Association of Canada concerning the industry contingency fund, the MFDA Investor Protection Corp.

“The amendments extend the protection from actions and proceedings by MFDA members and [reps] to the MFDA IPC. In addition, the amendments codify the relationship between MFDA members and the MFDA IPC and the obligations of MFDA members with regard to that relationship,” it says.

The proposed amendments were published for comment on June 26, 2009, drawing four comments, from: the Independent Financial Brokers of Canada, the Investment Funds Institute of Canada, Portfolio Strategies Corp., and Royal Mutual Funds Inc. and Phillips, Hager & North Investment Funds Ltd.

The regulators published a summary of those comments and the MFDA’s responses, adding that no material changes were made in response to the comments.

IE