CSA Securities

Vancouver – The Canadian Securities Administrators (CSA) today released the Oversight Review Report of the Mutual Fund Dealers Association of Canada (MFDA). The report evaluates whether selected regulatory processes were effective, efficient, and were applied consistently and fairly, and whether the MFDA complied with the terms and conditions of its recognition orders.

The MFDA is the national self-regulatory organization for the distribution side of the Canadian mutual fund industry.

On behalf of the CSA, the oversight review was conducted jointly by CSA staff of seven of the provincial securities regulators that recognize the MFDA: the Alberta Securities Commission, the British Columbia Securities Commission, the Financial and Consumer Affairs Authority of Saskatchewan, the Financial and Consumer Services Commission of New Brunswick, the Manitoba Securities Commission, the Nova Scotia Securities Commission, and the Ontario Securities Commission. The MFDA is also recognized by the Prince Edward Island Office of the Superintendent of Securities.  The MFDA has also entered into a Co-operative Agreement with the Autorité des marchés financiers and participates in the regulation of mutual fund dealers in Quebec.

Based on the annual risk-based assessment of the MFDA’s regulatory processes, CSA staff reviewed key regulatory processes in the following functional areas: sales compliance, membership services, financial operations, and corporate governance.

No findings were identified during the oversight review and CSA staff concluded that the MFDA is meeting the relevant terms and conditions of the recognition orders in the functional areas reviewed.

Conducting on-site reviews is only one component of CSA staff’s oversight activities.  CSA staff are also active in the rule review process, discussing proposed MFDA rule amendments, providing comments and assessing the MFDA’s responses.  If satisfied, staff will ultimately recommend proposed rule amendments for approval or non-objection to their decision makers.  Moreover, the MFDA is responsible for filing certain information (other than proposed rules) with the CSA.  This information includes, but is not limited to, reports on financial condition, self-assessments, risk management, compliance examination results and enforcement matters.  CSA staff review the materials filed, conduct necessary follow-up with the MFDA on any issues raised and use CSA staff’s review of materials filed to inform the annual risk assessment.

The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

– 30 –

For more information:

CSA member name

Point of contact

Phone number

Autorité des marchés financiers

Sylvain Théberge

514-940-2176

Alberta Securities Commission

Hilary McMeekin

403-592-8186

British Columbia Securities Commission

Alison Walker 

604-899-6713

Financial and Consumer Affairs Authority of Saskatchewan

Shannon McMillan

306-798-4160

Financial and Consumer Services Commission, New Brunswick

Sara Wilson

506-643-7045

Government of Prince Edward Island, Superintendent of Securities

Steve Dowling

902-368-4550

Manitoba Securities Commission

Jason (Jay) Booth

204-945-1660

Nova Scotia Securities Commission

David Harrison

902-424-8586

Nunavut Securities Office

Jeff Mason

867-975-6591

Office of the Superintendent of Securities, Newfoundland and Labrador

Craig Whalen

709-729-5661

Office of the Superintendent of Securities, Northwest Territories

Tom Hall

867-767-9305

Office of the Yukon Superintendent of Securities

Rhonda Horte

867-667-5466

Ontario Securities Commission

Kristen Rose

416-593-2336