The Ontario Securities Commission has approved amendments to the Mutual Fund Dealers Association policy on handling client complaints. The proposed rules were published for comment on July 11, 2003.

The amendments to MFDA Policy No. 3 — Handling Client Complaints establish additional reporting requirements for MFDA members and reps on customer complaints. They also prohibit direct settlement between reps and clients made without the firm’s knowledge.

The OSC received two submissions during the public comment period, from Royal Mutual Funds Inc. and Independent Planning Group Inc. One commentator requested further guidance as to the expectations of the MFDA regarding the reporting of complaints arising from financial planning activity but unrelated to the sale of a security. In its response, the MFDA says that further guidance will be provided by way of a bulletin.

The MFDA says it will encourage firms to report any complaints relating to financial planning, insurance sales, or any other financial activity concerning clients.

In addition to the OSC’s approval, the Alberta Securities Commission, Nova Scotia Securities Commission and Saskatchewan Financial Services Commission approved the amendments. The British Columbia Securities Commission did not object to the amendments.