MFDA publishes guidance on intermediary arrangements

By Staff | September 5, 2018 | Last updated on September 5, 2018
1 min read

The MFDA has published final guidance on member intermediary arrangements.

An intermediary is any financial institution, such as a bank, dealer or trust company, that has an arrangement with an MFDA member dealer to facilitate transactions. As part of the arrangement, the intermediary might provide services such as trade execution, custody, settlement or record keeping.

Specifically, the guidance clarifies that intermediary service arrangements with intermediaries not registered under securities legislation should be entered into under MFDA rule 1.1.6, not rule 1.1.3.

Two submissions were received during the proposed guidance’s comment period, which ended May 7, 2018. Both submissions were from investor associations, and were generally supportive of the guidance, says the MFDA in a bulletin.

Read the final guidance on member intermediary arrangements.

Advisor.ca staff

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.