The Investment Dealers Association says that the rash of firms leaving the business or amalgamating is pushing it to clarify the administrative procedure for amalgamations and resignations.

The IDA’s board has approved amendments to a by-law, effective August 28, concerning the process of resigning or merging. “As the trend in resignations and amalgamations of IDA member firms has increased, it has become necessary to provide greater clarity respecting administrative process and the payment of fees,” it says.

The amendments address:

  • the pro rata payment of annual fees and when this would be justified upon resignation of a member;
  • the “surrendering” of membership where two or more members amalgamate;
  • the two-stage process of resignation which includes both the “intention to resign” and the “resignation”; and
  • clarification of when the resignation become “effective”.The aim of the by-law amendment is to eliminate any misunderstanding in the resignation and amalgamation process.