The Ontario Securities Commission has approved the Mutual Fund Dealers Association of Canada’s continued arrangement with regulators in Quebec concerning oversight of fund dealers in that province.

The OSC had already approved an earlier deal between the MFDA, l’Autorité des marchés financiers du Québec and the Chambre de la sécurité financière, which was struck in late 2004 and approved by the OSC in early 2005. Under the agreement, the Autorité, the Chambre and the MFDA co-ordinate their various regulatory functions with respect to MFDA members and their reps operating in Québec.

The MFDA applied to the OSC for a new consent to the agreement with no definite expiry date, and it was granted subject to certain conditions. The conditions include:

> the MFDA contingency fund can not provide coverage in Quebec; and

> management of the MFDA assess the effectiveness of the agreement every two years, and provide the OSC with a copy of these reports by June 15 following each biennial assessment, starting on June 15, 2010).

The new consent will only expire if the agreement is terminated, the MFDA contingency fund amends its coverage regarding clients in Quebec, or if the OSC decides to withdraw it.