Mutual fund dealers learned more about the process of making exchange-traded funds (ETFs) available to their clients at the fourth annual Federation of Mutual Fund Dealers’ (FMFD) Conference in Toronto on Tuesday.
Sandra Kegie, executive director of Toronto-based FMFD and president of Kegie Consulting Corp., shared the findings of a working group that was created specifically to explore this issue. This included providing dealers with a draft of best practices for dealers wanting to sell ETFs.
“We believe in its current [draft] state, it still covers a good portion of what a dealer would want to consider and incorporate into their policies and procedures manual,” said Kegie.
This includes that dealers should ensure that any compliance staff, supervisory staff and advisors be able to demonstrate knowledge of the product.
“We are recommending in our best practices that everyone planning on selling or supervising the sell of ETFs take a stand-alone course,” said Kegie.
Courses are currently available through the Smarten Up Institute, the IFSE Institute and the Canadian Securities Institute.