The Ontario Securities Commission has approved proposed amendments to Mutual Fund Dealers Association rules that will provide additional disclosure to clients about the responsibilities of dealer types.

Specifically, the changes to rule 1.1.6(b) will provide added disclosure to clients about the responsibilities of a level 2 introducing dealer and the carrying dealer. And, they will increase the flexibility on how level 3 and level 4 introducing dealers could provide disclosure to clients.

A public comment was received from Performa Financial Group Ltd. on the changes, but did not result in any revisions to the proposed amendments. The comment letter suggested that the requirement in for Level 3 and 4 introducing dealers to provide annual disclosure of the relationship between the introducing dealer and the carrying dealer and the relationship between the client and the carrying dealer was excessive. The MFDA disagreed.

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 proposed amendments either.