The Mutual Fund Dealers Association today outlined the procedure firms should follow in applying for exemptive relief from MFDA by-laws and rules.

In a policy notice, the MFDA says there is no set form for exemptive relief applications. Any application should, in writing, set out: the exact relief sought, and facts and supporting the application.

The MFDA board has the power to grant relief “where it is satisfied that to do so would not be prejudicial to the interests of the members, their clients or the public.”

The notice says the Regulatory Issues Committee (RIC) of the MFDA board is responsible for ruling on these sorts of applications. MFDA staff will consider the submissions made in the application, and evaluate the proposed relief sought in light of the regulatory objective of the requirement that the applicant is requesting relief. It will inform the applicant of its recommendation to the RIC.

If staff decide not to recommend relief, firms can still request that the application be referred to the board for consideration without staff support.

Decisions by the MFDA board’ may be reviewed by provincial securities commissions.