The Mutual Fund Dealers Association of Canada is proposing to change its rules to require client account statements to be delivered quarterly for all accounts.
Under current MFDA rules, firms have to send account statements to clients once every 12 months for a client name account. For nominee name accounts, they must send a statement once a month where there is an entry during the month and quarterly where no entry has occurred in the account.
Since the summer, the Canadian Securities Administrators’ registration rule requires mutual fund dealers to deliver account statements to clients at least once every three months for both client name and nominee name accounts.
MFDA clarifies account statement rules
The MFDA is proposing changes to conform with the CSA rule to ensure that the requirements are consistent.
“The effect of the proposed amendments will be to avoid member confusion by ensuring that members are subject to consistent requirements in respect of the frequency of account statement delivery under both MFDA Rules and [CSA rules],” it says.
In a notice announcing the proposed changes, the MFDA indicates that the CSA are currently reviewing the applicability of account statement requirements to exempt market dealers, and it says that additional amendments to its rules will be made if necessary as a result of that review.
The proposed change was approved by the MFDA board on Sept. 28, and it’s now out for a 30-day comment period.