The Mutual Fund Dealers Association of Canada is seeking to revise its membership approval process.

The proposed amendments aim to streamline and clarify the process, and the appeal procedures where membership has been, or is proposed to be, denied or granted conditionally. It would also make the process consistent with the one used by the Investment Dealers Association of Canada.

The MFDA said its by-laws currently provide an applicant with a right to be heard as part of the initial application process where the board, through the executive committee, proposes to refuse an application or approve an application subject to terms and conditions.

The provision would be eliminated and replaced with the ability of the executive committee to make an administrative decision based on the application as submitted and reviewed by MFDA staff. The decision may be reviewed by the board or one of its committees and the right of appeal to the relevant securities commission would be retained.

The MFDA’s board approved the proposed amendments June 15. The changes will be effective on a date to be subsequently determined by the MFDA. The amendments are out for a 30-day comment period.