The Mutual Fund Dealers Association of Canada Thursday published the results of the member survey it carried out this past summer — an exercise that led it to abandon possible merger talks with the Investment Industry Regulatory Organization of Canada.
The MFDA surveyed its members on a variety of issues, including a possible merger with IIROC.
The MFDA says the summer survey indicates an improvement in the level of satisfaction with the MFDA’s processes “in all areas”, since the first survey, which was conducted back in 2006.
On the merger question, it found that 59% of respondents, which represents 25% of MFDA members (given the survey’s 47% response rate), were in favour of exploring a possible merger with IIROC. However, of those, 27% said that the MFDA should wait until a national securities regulator is established.
Another 35% of respondents, representing 15% of total members, wanted the MFDA to postpone exploring a possible merger with IIROC.
In response to a question about the specific timing of a possible merger, almost half (47%) of respondents said that the MFDA should wait until a national securities regulator is established.
Given the lukewarm support for a deal right now, the MFDA says that its board of directors has decided not to pursue possible merger discussions with IIROC “at this time.”
Some of the other aspects of the survey are to be used in the development of the MFDA’s strategic plan for 2012-2014. It reports that the top priorities identified in the survey include: continued member participation in transparency and policy development; the efficiency and effectiveness of the MFDA compliance and enforcement processes; training and education of both supervisory personnel at firms and of MFDA staff; and, the role of the MFDA in the national securities regulatory framework.
Elsewhere, the survey found that MFDA members said notices and bulletins are the most important communications issued by the MFDA, and that over 90% are ‘satisfied’ or ‘somewhat satisfied’ with their content, format and frequency. It notes that some members said that the information in notices and bulletins is too vague, while others commented that they are too prescriptive.
Over 90% of respondents were satisfied with the MFDA’s website, although there were calls to improve search functionality and the ability to report information to the MFDA through the site.
And, over 80% said that they are satisfied with MFDA annual meetings, although only 54% of respondents reported attending an AGM. Among those who have not attended an AGM, the main reasons cited were: the location was inconvenient; and, they were too busy to attend.