(April 26 – 10:40 ET) – New regulations governing mutual funds came into effect in February and to help with the transition, the Investment Funds Institute of Canada has issued a “Best Practices Guideline” relating to the processing of purchase and redemption orders.
The Best Practices Guideline helps to clarify the meaning of certain provisions and explain how they can be applied by the industry. To ensure that orders are not sent directly by representatives to fund companies without copies going to the appropriate person within the dealer organization responsible for reviewing trades, says IFIC, there is a new requirement that dealers send copies of orders to the person within the dealer organization responsible for supervising trades in the jurisdiction by the time they are sent to the mutual fund order receipt office.
IFIC’s Guideline also answers questions such as: What if a cheque or debit payment for a purchase order is NSF? What are basic redemption requirements?
The covering memo and the Best Practices Guideline can be found on the password protected Member’s Only IFIC web site.
-IE Staff