Mutual Fund Dealers Association of Canada (MFDA) – Client Focused Reforms Rule Amendments – Notice of Commission Approval

Market Regulation Document Type
MFDA IPC approval orders

The Ontario Securities Commission has approved proposed amendments (Amendments) to make the MFDA requirements uniform in all material respects with the reforms to enhance the client-registrant relationship (Client Focused Reforms or CFRs) made to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations by the Canadian Securities Administrators (CSA CFRs).

The Amendments were published for public comment on November 19, 2020 for a 60-day period ending on January 18, 2021. Three comment letters were received. The MFDA has made non-substantive changes in response to the comments received. A summary of the public comments and the MFDA's responses, as well as a blacklined copy of the Amendments showing changes made to the version published for comment, can be found at

Also on November 19, 2020, the MFDA made housekeeping rule amendments{1} to conform the MFDA's rules to the CSA CFRs. Even though the housekeeping amendments were deemed to be approved, the MFDA made non-substantive changes to them in response to comments received in order to provide better clarity with respect to relationship disclosure, and client lending and margin. The public comments relating to the housekeeping amendments and the MFDA's responses have been included in the summary referenced above. A blacklined copy of the housekeeping amendments showing changes made to the version published on November 19, 2020, can be found at

Both the Amendments and housekeeping amendments will come into effect on December 31, 2021 to align with the implementation date of the CSA CFRs{2}.

In addition, the British Columbia Securities Commission; the Alberta 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; the Prince Edward Island Office of the Superintendent of Securities Office; Office of the Superintendent of Securities, Northwest Territories; Office of the Superintendent of Securities, Nunavut; and Office of the Yukon Superintendent of Securities have either not objected to or have approved the Amendments.

{1} Under the MFDA's Joint Rule Review Protocol with the CSA, housekeeping rule changes are not published for comment, and will be effective on the date designated by the MFDA in its filing. Housekeeping rule changes have no material impact on investors, issuers, members, registrants or the capital markets in any province or territory of Canada and are necessary to conform to applicable securities legislation.

{2} The CSA CFRs relating to conflicts of interest came into effect on June 30, 2021, while the remaining reforms will take effect on December 31, 2021.