(June 16 – 09:35 ET) – All mutual fund dealers and sales people will have to become members of the Mutual Fund Dealers association within thirteen months of it being recognized as a self-regulatory organization (SRO). Recognition is expected by January 2001. This mandatory rule is an Ontario Securities Commission requirement. It has been made public along with the Mutual Fund Dealers Association’s SRO application.
Since 1997, the OSC and other members of the Canadian Securities Adminstrators has supported the establishment of the MFDA as a SRO. They view it as the best way to protectCanadian mutual fund investors of Canada, says Rebecca Cowdery, Manager of Investment Funds for the OSC. “The OSC is confident that requiring all mutual fund dealers and sales people to be members of the MFDA will provide a substantial level of protection for the millions of Canadians who have invested in mutual funds.”
The OSC says it is working with insurance regulators to deal with issues faced by salespeople who are licensed to sell mutual funds, too.
“Over 40% of adult Canadians are invested in the markets,” says Cowdery. “Fund assets in Canada now total $409 billion, up from $30 billion from 1990. Recognition of the Mutual Fund Dealers Association as a SRO and mandatory membership for fund dealers and sales people are significant steps in protecting these investments.”