The Mutual Fund Dealers Association’s board of directors has amended its rules regarding when firms can be removed from early warning status.

The MFDA reports that the securities commissions have approved a housekeeping amendment that was made to provide MFDA staff with flexibility regarding early warning designations.

The amendment will allow MFDA staff to exercise discretion in removing a firm from early warning upon resolution of the issue, rather than waiting a month to receive the firm’s monthly financial report.

The current rule requires that a firm must remain in early warning until the last filed monthly financial reports of the firm demonstrate that it is no longer required to be designated as being in early warning.