April 11, 2001
For Immediate Release

MFDA Gets Official Green Light

Toronto - Final approval for recognition of the Mutual Fund Dealers Association of Canada as a self-regulatory organization has been received by the British Columbia, Alberta, Saskatchewan and Ontario securities commissions. This move will add a new and important level of protection for investors in mutual funds.

Rules of those provinces also require all registered mutual fund dealers to become members of the MFDA by specified deadlines.

"We have reached the final milestone in a process that has seen mutual fund sales professionals, investors and regulators work together to give the MFDA the means to address the business needs of the industry, while continuing to preserve the necessary investor protections afforded by securities legislation," said Doug Hyndman, Chair of the Canadian Securities Administrators.

Mr Hyndman added, "We look forward to working with the MFDA in our oversight capacity to ensure that the goals of this important initiative are maintained. And that mutual fund dealers become members of this new SRO, which is tailored to reflect their businesses."

"The recognition of the MFDA as a SRO, which has long been anticipated by the mutual fund distribution industry, investors and regulators, will have a continuing positive impact on investor confidence and the integrity of the Canadian capital markets," said MFDA Chief Operating Officer, Larry Waite.

All mutual fund dealers registered in applicable jurisdictions as mutual fund dealers are now required to:

  • prepare and submit to the MFDA an application for membership in the form prescribed by the MFDA, together with the MFDA's prescribed fees by May 23, 2001 in Ontario and British Columbia and May 31, 2001 in Saskatchewan.
  • become members of the MFDA by July 2, 2002 in Ontario and Saskatchewan.

The rules and by-laws of the MFDA are available on the MFDA and OSC website and were published in the February 16 edition of the OSC Bulletin.

The MFDA has posted its form of application for membership and a description of the application process on its website at http://www.mfda.ca.

References:

Ontario Securities Commission
Rebecca Cowdery
Manager, Investment Funds
(416) 593-8129

Ontario Securities Commission
Rowena McDougall
Sr. Communications Officer
(416) 593-8117

British Columbia Securities Commission
Michael Bernard
Director of Communications
(604) 899-6524

Alberta Securities Commission
Joni Delaurier
Communications Coordinator
(403) 297-4481

Saskatchewan Securities Commission
Barbara Shourounis
Director
(306) 787-5842

Mutual Fund Dealers Association of Canada
Connie Craddock
(416) 943-5870