The Ontario Securities Commission is requesting comment on amendments to the corporate governance structure of the Mutual Fund Dealers Association.

The current MFDA governance structure requires the MFDA board to have equal representation of the public, the Investment Dealers Association, and the Investment Funds Institute of Canada. The current by-laws also reflect a regional structure and disciplinary particulars developed at a time when the MFDA was in its early stage of development.

The MFDA’s conditions of recognition as a self-regulatory organization require that the MFDA develop and implement a corporate governance review by no later than its third annual meeting, scheduled for December 2003. The recognition order also included a requirement that the board no longer include nominees from the IDA and IFIC.

The MFDA’s board established a Corporate Governance Committee to consider and make recommendations relating to the corporate governance structure at the MFDA. The committee filed its report with the regulators in February 2003.

The report included recommendations respecting the size, composition and operations of the board and particulars respecting MFDA Regional Councils and disciplinary matters.

On June 13, the MFDA passed by-law amendments that reflect the recommendations of the committee.