The Ontario Securities Commission has approved the Mutual Fund Dealers Association of Canada’s proposal to implement a policy regarding information reporting requirements.

The amendments consolidate many of the MFDA’s reporting requirements into a single instrument, expand the scope of matters that members and approved persons must report, and require electronic reporting of enforcement and compliance information.

The proposed amendments were published for comment in October 2006 and five submissions were received during the public comment period, from: the Canadian Bankers Association, the Investment Funds Institute of Canada, the Independent Financial Brokers of Canada, Scotia Securities Inc. and Portfolio Strategies Corp.

The OSC Bulletin reports that some immaterial changes have been made to the proposed policy since the amendments were originally published, and it also publishes a summary of the comments received and the MFDA’s responses.

Among the comments, the IFB said that it failed to see the need for increased reporting to, and oversight by, the MFDA. The MFDA replied that, “The information that will be required under the proposed policy will enable MFDA staff to proactively respond to industry trends and enhance investor protection.” It also noted that many of the reporting requirements consolidate existing MFDA reporting requirements, while others are similar to the reporting requirements dealers are subject to under registration rules.

Additionally, Portfolio Strategies recommended that a two-year transition period should be implemented. The MFDA disagreed. It said its staff will provide a detailed user manual to all its members to assist them with the implementation of electronic reporting. “There will be a period of time where the reporting system will be functional but where electronic reporting will not be mandatory. Training sessions will be held by MFDA staff so that members can become familiar and accustomed to the system,” it noted. “Given that all electronic reporting under the proposed policy will be through a web-based interface, members should already be familiar with web-based electronic reporting, and MFDA staff is of the view that a two year transition period is unnecessary.”

In addition to the OSC’s approval, the Alberta Securities Commission, Nova Scotia Securities Commission and Saskatchewan Financial Services Commission approved, and the British Columbia Securities Commission did not object to, the amendments.