The Mutual Fund Dealers Association has submitted an application to regulators in Alberta, B.C., Ontario, Saskatchewan and Nova Scotia to amend and restate the orders of each jurisdiction recognizing the MFDA as a self-regulatory organization.

The amendments are requested in order to: reflect changes in the MFDA’s governance structure; clarify the MFDA’s ability to enter into arrangements with another party to perform certain regulatory functions; and make housekeeping amendments to streamline the current orders.

The provincial regulators are publishing for comment both applications of the MFDA and the related documents. Earlier this week, the MFDA reported changes to its governance structure, the appointment of Larry Waite as its CEO, and the members of its new board.

The MFDA has also submitted an application to the jurisdictions for consent to enter into an arrangement in Quebec with the Bureau des services financiers and the Chambre de la sécurité financière for these agencies to perform certain regulatory functions with respect to MFDA members and reps in Quebec.

The MFDA is not recognized or approved as a self-regulatory organization in Quebec and is not able to conduct its regulatory activities in that province on the same basis as it does in other provinces and territories.

In order to ensure that MFDA members and their reps operating in Quebec are properly regulated, the MFDA has struck an agreement with the Bureau and the Chambre, who have jurisdiction over mutual fund dealers and salespersons operating in Quebec, to co-ordinate their regulation. It says that the objectives of the Co-operative Agreement are to avoid regulatory inefficiencies and to preserve and enhance the respective separate mandates of the Bureau, the Chambre and the MFDA.

The MFDA will refer to the Bureau and the Chambre complaints regarding conduct of its firms and reps in Quebec, and the Bureau and the Chambre will refer to the MFDA complaints regarding conduct of MFDA members and reps outside Quebec.

The Bureau, the Chambre and the MFDA will keep each other advised of the development or proposed development of new or amended regulations, and consult with each other to ensure rule harmonization. The agreement also provides for a Coordination Committee, made up of staff of the MFDA and the Bureau, to develop similar approaches and program for compliance examinations and to work towards consistency and harmonization of rules.

The MFDA has also applied for amendments to allow it to delegate its enforcement function to another party.

Comments are due by Jan. 12, 2004.