A solution to connect mutual fund dealers to exchange-traded funds (ETFs) that provides custody, clearing and trade execution solutions was unveiled Tuesday at the Federation of Mutual Fund Dealers’ (FMFD) Conference in Toronto.

This process would be facilitated through an omnibus account, with each mutual fund dealer having its own account, according to Christine Rodrigues, senior vice president of relationship management and business development for National Bank Correspondent Network (NBCN).

The dealer’s one omnibus account would hold all of its ETF client accounts.

“The account is in the name of the mutual fund dealer and the client’s specific details will be documented and tracked on the mutual fund dealer’s book of record by the mutual fund dealer,” explained Rodrigues.

The mutual fund dealer would be responsible for the relationship with the client and all administrative reporting and regulatory responsibilities.

This system to sell ETFs through mutual fund dealers is available to level 4 dealers, as designated by the Mutual Fund Dealers Association of Canada (MFDA). Level 3 dealers would have to make the shift to level 4 in order to bring ETFs to their clients, according to Sandra Kegie, executive director of Toronto-based FMFD and president of Kegie Consulting Corp.

There are also operational factors to consider, such as a dealer must have an electronic connection to the NBCN network, said Rodrigues.

Part four of a web-exclusive companion to Investment Executive’s ETF Guide for Financial Advisors, 2015.