The Mutual Fund Dealers Association of Canada will begin examining riskier firms more frequently than more conservative ones, starting in the new year.

The MFDA said Monday it is planning to alter its sales compliance examination process to utilize a more risk-based methodology. Beginning in January 2012, it intends to begin performing its routine compliance exams of fund dealers on either a two or four-year cycle based on an assessment of risk factors.

It notes that these factors will be reviewed on an ongoing basis and it is possible for a dealer’s examination cycle to change.

In addition to the routine examinations, the MFDA will also continue to perform targeted examinations focusing on specific matters, it adds.