The Mutual Fund Dealers Association is reminding its members that use of the Electronic Filing System is now mandatory for routine filings.

MFDA rules require firms to file unaudited financial information with the regulator within 20 business days of its month end, and audited financial information within 90 days of their fiscal year end. The MFDA will no longer accept paper format for monthly filings with reporting dates ending January 1, 2005 or later.

Instead, dealers will be required to file their financials using the MFDA’s web-based application, the Electronic Filing System. Although copies of the filings in paper format must be retained in paper format by the firm, and audited annual financials must be filed in paper, too.

The MFDA says its compliance staff will be assessing compliance with these procedures when performing on-site examinations of dealers. Firms will be subject to late filing penalties if they haven’t filed electronically in accordance with the new requirements.