The Mutual Fund Dealers Association is seeking to amend its by-laws to allow a hearing panel to continue with just two members, if necessary.

The MFDA’s by-laws currently require that a hearing panel must always consist of three members of the regional council: one public representative who must be the chair of the panel and two industry representatives who may be either elected or appointed members of the regional council.

However, the by-law does not currently provide for the continuance of a hearing should an industry appointed panel member be unable to continue to participate. “In the event that an industry appointed panel member is unable to continue to participate in a hearing, the only existing option is to start a new hearing with a newly constituted hearing panel,” it notes, adding, “The current process is an inefficient use of resources.”

The objective of the proposed amendments is to allow a hearing panel to continue as a two member panel should an industry appointed panel member be unable to continue to participate in the hearing.

The MFDA says that it considered the possibility of allowing a new panel member to replace the recused panel member and continuing the hearing with a three member panel. “However, this alternative was determined to be inconsistent with administrative law principles,” it decided.