MFDA proposes rule change for better information flow

By Staff | March 28, 2019 | Last updated on March 28, 2019
1 min read

The Mutual Fund Dealers Association of Canada (MFDA) is proposing a rule change to ensure that information uncovered by the Ombudsman for Banking Services and Investments (OBSI) when investigating client complaints can be passed along to the MFDA.

According to a March 28 notice outlining the proposed change, the provisions in OBSI’s terms of reference are “broader with respect to the type of information that can be provided to regulators” than the equivalent provisions in the MFDA’s rules.

As a result, the MFDA is seeking to do away with those provisions so they don’t “unnecessarily limit, conflict or give rise to potential inconsistencies with” OBSI’s approach.

Among other things, this would help the MFDA identify any potential systemic issues, and the self-regulatory organization could be alerted to cases where OBSI expects that a firm may refuse a compensation recommendation, the proposal says.

The proposed change was approved by the MFDA board on Feb. 27 and is out for comment until June 26. staff


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