Notice of Commission Approval – Amendments to MFDA Recognition Order and to MFDA By-law No. 1 Regarding the Definition of "Public Director" – Mutual Fund Dealers Association of Canada (MFDA)

 
On October 28, 2008, the Commission issued an order pursuant to section 144 of the Securities Act (Ontario) to vary and restate an order dated February 6, 2001, as amended on March 30, 2004 and November 3, 2006, recognizing the MFDA as a self-regulatory organization for mutual fund dealers (Recognition Order). The amendments to the Recognition Order remove the definition of “Public Director” from the terms and conditions, and make housekeeping amendments to correct inconsistencies and typographical errors. The British Columbia Securities Commission, Nova Scotia Securities Commission and Saskatchewan Financial Services Commission have also made similar amendments to their recognition orders. A copy of the varied and restated Recognition Order is published in Chapter 2 of this bulletin. 

On the same date, the Commission approved amendments to various provisions of MFDA By-law No. 1 (the By-law). These include the definition of “Public Director” to permit individuals currently ineligible to act as public directors to qualify where appropriate, and the terms of office and maximum tenure for all MFDA directors. The Alberta Securities Commission, Saskatchewan Financial Services Commission, Manitoba Securities Commission, New Brunswick Securities Commission and Nova Scotia Securities Commission have also approved, and the British Columbia Securities Commission have not objected to, the amendments to the By-law. 

The MFDA’s application regarding the proposed amendments to the Recognition Order and the proposed amendments to the By-law were published for comment on May 23, 2008 at (2008) 31 OSCB 5348. The MFDA’s summary of public comments and response is being published in Chapter 13 of this Bulletin. Some non-material changes have been made to the proposal relating to the By-law since the time it was published. A blacklined version of the approved amendments is also being published in Chapter 13 of this Bulletin.