Regulators have approved the Mutual Fund Dealers Association of Canada’s (MFDA) proposed new proficiency standard for financial advisors who sell ETFs.
The B.C. Securities Commission indicates in a notice published on Thursday that regulators have approved the MFDA’s proposed new policy that establishes proficiency requirements for reps selling ETFs.
“The proposed policy establishes minimum standards to ensure that approved persons trading in ETFs have the education, training and experience that a reasonable person would consider necessary to perform the activity competently,” it notes.
The BCSC published the proposed policy for comment last summer. A summary of those comments that was published alongside the BCSC notice indicates that commenters generally supported the idea and approach to setting proficiency standards.
“It was noted that proposed [policy] will elevate the proficiency standards … and strengthen investor protection,” the summary says.
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