The Mutual Fund Dealers Association has prepared a reference guide to assist fund dealers in the development of adequate written policies and procedures.

In a bulletin issued Wednesday, the MFDA said the guide will be updated regularly to reflect changes to regulatory requirements.

MFDA rules requires each fund dealer to establish and maintain written policies and procedures, approved by senior management, for dealing with clients and ensuring compliance with MFDA regulations and applicable securities legislation. These policies and procedures must be set out in a Policies and Procedures Manual (PPM).

On March 16, 2001, MFDA staff issued a notice that provided guidance on the topics that should be included in a fund dealer’s PPM. “However, since the issuance of this notice, there have been a number of changes to regulatory requirements that impact a member’s operational and administrative procedures,” the MFDA explains.

The reference guide is intended to assist dealers in complying with their PPM obligations.

“It is recommended that members use the reference chart in conjunction with the MFDA Rules, Policies and Member Regulation Notices to identify any gaps in their written policies and procedures and update their written procedures accordingly,” the MFDA says.

The guide is available on the MFDA website.

IE