The Mutual Fund Dealers Association has issued a bulletin addressing a letter-writing campaign concerning account transfers that it says has originated with financial advisor association Advocis.

The MFDA says that its board members have recently received a number of identical two-page, standard-form letters from a number of reps calling for rule changes to allow bulk transfers and a number of other changes to facilitate account transfers. The MFDA says that it understands that this letter writing campaign has been organized by Advocis.

The MFDA reports that it has responded directly to each of the writers of these letters, but it has now decided to publish a copy of the letters it is receiving, and its standard response justifying the current requirements, “for the benefit of all members and approved persons”.

In the response letter, the MFDA outlines its investor protection rationale underlying the requirements for transfers of client accounts.

It says the rules are “intended to protect the interests of both clients and member firms in ensuring that the property of clients and information relating to their affairs are protected.”

The MFDA adds that it has also been receiving postcards making similar points, but many of these aren’t signed, and don’t have return addresses. “In light of this, the MFDA has determined that it would be appropriate to announce through this Bulletin that the senders of any such cards should inform themselves of the MFDA response by referring to the MFDA response attached to this Bulletin. The MFDA will not be providing any further written response to any communication similar to these cards,” it says.