Terry Wright, has resigned as chairman of the board of the Mutual Fund Dealers Association to avoid any hint of conflict with a probe underway by the Ontario Securities Commission.

The MFDA said Wright announced his resignation from the MFDA board in order to avoid any potential appearance of possible conflict in the OSC’s ongoing review of trading practices in the mutual fund industry.

Wright is also senior vice president and general counsel at Investors Group Inc. Investors Group confirmed earlier this week that the OSC had sent it a letter warning of possible enforcement action over market timing trading abuses uncovered by regulators. It was one of four firms to receive a letter from the OSC.

In his place, the MFDA has appointed Robert Wright as its new chairman of the board.

Robert Wright is deputy chairman of Teck Cominco Ltd. and for many years practiced law in the corporate securities field. He is a former chair of the OSC and a former chairman and director of the Toronto Port Authority. He was appointed a Member of the Order of Canada in 1997. Robert Wright has served on the MFDA Board since its inception in 1998 and currently is a member of the Executive and Corporate Governance Committees.

In a release, the MFDA said that it wishes to thank Terry Wright for his dedicated contribution to the development of the MFDA during his two years as chairman.

The association is also investigating fund dealers concerning market timing abuses, and has referred several cases to its enforcement department for possible sanctions.