The Ontario Securities Commission has issued an order updating its February 6, 2001 order recognizing the Mutual Fund Dealers Association as a self-regulatory organization for mutual fund dealers.

The amended order reflects changes in the MFDA’s governance structure, clarifies the MFDA’s ability to enter into arrangements delegating enforcement, and, removes certain terms and conditions of the previous order that were transitional and have been satisfied by the MFDA.

The changes reflect the fact that the MFDA has overhauled its governance structure in order to balance among the interests of members and individuals who represent the public interest on the MFDA board and its committees and bodies. And, that it has struck a deal with authorities in Quebec to ensure that firms in that province are in compliance with similar rules.

It notes that the MFDA is required to: advise the commission in advance of any proposed material changes or reductions in its financial review program or operational and sales compliance review programs; give the commission notice of new directors, officers and committee chairpersons; and, file certain reports, including a self-assessment by management of the MFDA’s performance of its self-regulatory responsibilities, its budget and audited financial statements.