MFDA updates investigatory powers

By Staff | May 7, 2020 | Last updated on May 7, 2020
1 min read

The Mutual Fund Dealers Association of Canada (MFDA) has beefed up its investigatory powers.

On Thursday, the MFDA announced it has amended a section of MFDA Bylaw No. 1 that deals with the self-regulatory organization’s authority to examine and investigate members. The amendments are intended to modernize and clarify the section, and maintain investor protection, the MFDA said in a release.

The revisions to Section 22 require MFDA members under examination or investigation to produce any records that the MFDA believes may be relevant. The records must be produced in the format requested by the MFDA, including electronically.

When being investigated, MFDA members must answer questions under oath. A member’s answers may be recorded — either in video or audio format — and transcribed for the purposes of the investigation. Members are obliged to cooperate with an investigation.

The MFDA further stipulates that it may enter the business premises of any individual under examination or investigation, during business hours, without prior notice. The MFDA is entitled to free access to all records, electronic or otherwise, during such times. The MFDA may remove original copies of records, and must provide a receipt for removed records.

Members who are under examination or investigation must not conceal or destroy any records that may be relevant to the examination or investigation.

The complete list of amendments, which is summarized in a bulletin, are effective immediately.

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Staff

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