Notice of Commission Approval – New MFDA Policy No. 11 – Proficiency Standards for the Sale of Alternative Mutual Funds – Mutual Fund Dealers Association of Canada (MFDA)

The Ontario Securities Commission has approved new MFDA Policy No.11 Proficiency Standards for the Sale of Alternative Mutual Funds (MFDA Policy No. 11).  MFDA Policy No. 11 aims to:

• adopt requirements that are consistent with Ontario Instrument 81-506 Temporary Exemptions from National Instrument 81-104 Alternative Mutual Funds and similar blanket orders issued by other regulators of the Canadian Securities Administrators; and
• ensure that alternative mutual funds, whether sold pursuant to a prospectus or on a prospectus-exempt basis, will be subject to appropriate proficiency requirements.

MFDA Policy No. 11 was published for public comment on November 25, 2021.  Four comment letters were received.  A summary of the public comments and the MFDA’s responses can be found at www.osc.ca.

MFDA Policy No. 11 will be effective immediately.

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; and the Prince Edward Island Office of the Superintendent of Securities have either not objected to or have approved MFDA Policy No. 11.