The Investment Funds Institute of Canada (IFIC) is endorsing a proposed new proficiency standard that would establish requirements for mutual fund dealer representatives to sell exchange-traded funds (ETFs).
The fund industry trade group and its educational arm, the IFSE Institute, both submitted comments on Wednesday supporting a new policy that the Mutual Fund Dealers Association (MFDA) proposed earlier this year that would set standards for training, education and experience for fund dealer reps who deal in ETFs.
In its comment, IFIC says it endorses a requirement for reps who distribute ETFs to have sufficient knowledge of the products and their specific features.
“This expands access to ETFs, providing another investment option to clients working with MFDA dealers,” IFIC’s comment says.
The IFSE Institute adds that the MFDA’s proposals establish “the framework for a robust proficiency standard for approved persons selling ETFs. … The policy sets clear expectations and provides firms with the flexibility they need to become compliant with the rule.”
IFIC also lauds the MFDA’s rule-making process, noting that its approach of collecting comments prior to drafting the proficiency standard provided an opportunity to raise issues before the self-regulatory organization issued its proposals.
“In our view, this is good public policy development as regulators are already aware of key stakeholder issues,” IFIC’s comment says.
The IFSE Institute notes that it has updated its ETF course to meet the requirements set out in the MFDA’s proposed rule and that it will release the course once the MFDA rule is finalized.
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