MFDA pushing forward with membership-disclosure policy

MFDA pushing forward with membership-disclosure policy

MFDA pushing forward with membership-disclosure policy

A new policy could make recognizing firms regulated by the Mutual Fund Dealers Association of Canada (MFDA) easier for Canadian investors.

Just as IIROC urged Canadians not to fall for businesses fraudulently claiming to be IIROC-regulated, the MFDA announced a new rule and policy — MFDA Rule 2.13 (Disclosure of MFDA Membership) and MFDA Policy No. 10 Disclosure of MFDA Membership —that require its members to include the MFDA logo on account statements that they issue, as well as their websites.

“The intent of the rule and policy is to promote client awareness of the regulatory oversight exercised by the MFDA in respect of MFDA members and their approved persons,” the association said in a statement.

According to MFDA Policy No. 10, members can decide on the size of the MFDA logo that would be reasonably appropriate for their account statements and websites. However, each member has to ensure that the logo is clearly visible and prominently included on the front of the statement and on their website.

Conversely, members who are suspended, as well as those whose memberships are terminated, will be prohibited from including the MFDA logo on their account statements and websites.

“To provide members with time to comply with the new requirements, the rule and policy will come into effect following a transition period which expires on December 31, 2018,” the statement said.

 

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