Mutual Fund Dealers Association (MFDA)

What Is the Mutual Fund Dealers Association?

The Mutual Fund Dealers Association of Canada (MFDA) is a self-regulatory organization (SRO) that directs the Canadian mutual fund industry as it relates to the offer of mutual funds to retail investors.

Grasping the Mutual Fund Dealers Association (MFDA)

The Mutual Fund Dealers Association of Canada (MFDA) was shaped in 1988 as a non-benefit corporation at the command of the Canadian Securities Administrators (CSA). Its creation came in response to a ten times increase in the size of the mutual fund industry in the late 1980s, and in the midst of worries the industry missing the mark on adequate regulatory structure.

Among the MFDA's stated objectives is to regulate the operations of its member dealers to keep up with public faith in the Canadian mutual fund industry. As a SRO, its implicit motivation is to limit regulation by the government. A 13-member board of directors, with six public directors and six industry directors, manages MFDA operations.

The self-regulatory organization is recognized by eight out of 10 provincial securities commissions in Canada. By its own account, the MFDA members and their advisors have more than $700 billion in client assets under administration (AUA). The MFDA claims its members financially prompt 9,000,000 Canadian families.

The Authority of the MFDA

As a self-regulatory organization, the MFDA falls under the supervision of the CSA however has the freedom to set and implement regulations past the essentials defined by the law. In the eight areas which officially perceive the MFDA, mutual fund dealers must be members of the MFDA to operate. In Qu\u00e9bec, the MFDA works agreeably with the Autorit\u00e9 des march\u00e9s lenders (AMF).

MFDA 2018-2022 Strategic Plan

One way the MFDA plans to increase public confidence in the Canadian mutual fund industry is through the education of its members. Remembered for the MFDA's 2018-2022 Strategic Plan is a key initiative to impose a continuing education requirement on MFDA advisers who, in contrast to life insurance agents and financial planners, don't right now have to earn continuing education credits to keep up with their license in Canada.

This will align MFDA members more with the members of several other Canadian regulatory bodies, like the Investment Industry Regulatory Organization of Canada (IIROC), by requiring a number of professional development credits on a two-year cycle. Many such credits will probably overlap with the credit requirements of related industry self-regulatory organizations, however the MFDA has pledged to attempt to keep away from pointless duplication.

Features

• The organization is recognized by eight out of 10 provincial securities commissions in Canada.
• MFDA members and their advisors address more than $700 billion in client assets. Its members financially prompt 9,000,000 Canadian families.
• The Mutual Fund Dealers Association of Canada is a self-regulatory organization that directs the Canadian mutual fund industry.