The Mutual Fund Dealers Association of Canada (MFDA) was a Canadian
self-regulatory organization
Self-regulation may refer to:
*Emotional self-regulation
*Self-control, in sociology/psychology
*Self-regulated learning, in educational psychology
*Self-regulation theory (SRT), a system of conscious personal management
*Industry self-regulation, ...
(SRO) that provided oversight to dealers that distribute
mutual funds
A mutual fund is an investment fund that pools money from many investors to purchase securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in Europe ('investmen ...
and exempt
fixed income
Fixed income refers to any type of investment under which the borrower or issuer is obliged to make payments of a fixed amount on a fixed schedule. For example, the borrower may have to pay interest at a fixed rate once a year and repay the pr ...
products. It was licensed under all Canadian provincial securities regulators (except Quebec, where it cooperates with the
Autorité des marchés financiers (AMF) instead). Its members consisted of the distribution side of the industry that typically provide mutual funds and exempt fixed income products to Canadians through
financial planners
A financial planner or personal financial planner is a qualified financial advisor. Practicing in full service personal finance, they advise clients on investments, insurance, tax, retirement and estate planning.
As a general rule, a financial p ...
.
It worked in parallel to another Canadian SRO, the
Investment Industry Regulatory Organization of Canada
Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broade ...
(IIROC), which was responsible for the distribution of equities,
exchange traded funds
An exchange-traded fund (ETF) is a type of investment fund that is also an exchange-traded product, i.e., it is traded on stock exchanges. ETFs own financial assets such as stocks, bonds, currencies, debts, futures contracts, and/or commoditi ...
(ETFs), and other exchange traded products such as
closed-end fund
A closed-end fund (CEF), also known as a closed-end mutual fund, is an investment vehicle fund that raises capital by issuing a fixed number of shares at its inception, and then invests that capital in financial assets such as stocks and bonds. ...
s.
On January 1, 2023, the MFDA was merged into the
Canadian Investment Regulatory Organization
The Canadian Investment Regulatory Organization (CIRO; ''Organisme canadien de réglementation des investissements'' or ''OCRI'' in French) is a non-profit, national self-regulatory organization (SRO). Established through the merger of the Invest ...
(CIRO).
History
The MFDA was created in June 1998 through an initiative by the
Canadian Securities Administrators
The Canadian Securities Administrators (CSA; , ACVM) is an umbrella organization of Canada's provincial and territorial securities regulators whose objective is to improve, coordinate, and harmonize regulation of the Canadian capital markets.
...
(CSA) in response to the rapid growth of mutual funds in Canada in the late 1980s.
As of July 2013, the MFDA represented 115 mutual fund dealer members. These members include 81,134 approved persons and $359.4 billion in investor assets, commonly referred to as Assets under Administration (AUA).
As of September 2018, the MFDA represented 91 mutual fund dealer members. These members include 80,177 approved persons and $561 billion in Assets under Administration ("AUA").
As of October 2019, the MFDA represented 90 mutual fund dealer members. These members include 79,789 approved persons and $570.968 billion in Assets under Administration.
As of February 2020, the MFDA represented 91 mutual fund dealer members. These members include 78,256 approved persons and $573.664 billion in Assets under Administration.
In January 2023 MFDA merged with the Investment Industry Regulatory Organization of Canada (IIROC) to form the
Canadian Investment Regulatory Organization
The Canadian Investment Regulatory Organization (CIRO; ''Organisme canadien de réglementation des investissements'' or ''OCRI'' in French) is a non-profit, national self-regulatory organization (SRO). Established through the merger of the Invest ...
(CIRO).
Purpose and structure
The MFDA regulated the operations, standards of practice and business conduct of its members and their representatives with a mandate to enhance investor protection and strengthen public confidence in the Canadian mutual fund industry.
The mutual fund dealerships collectively and formally represented themselves to the MFDA through the Federation of Mutual Fund Dealers, which later rebranded as the Federation of Independent Dealers.
See also
*
Canadian securities regulation
Canadian securities regulation is managed through the laws and agencies established by Canada's 10 provincial and 3 territorial governments. Each province and territory has a securities commission or equivalent authority with its own provincial o ...
*
Autorité des marchés financiers (Québec) Autorité des marchés financiers may refer to:
* Autorité des marchés financiers (France)
* Autorité des marchés financiers (Quebec)
The Autorité des marchés financiers (AMF; ) is a self-funding government agency responsible for financial re ...
External links
*
References
{{Reflist
Financial regulatory authorities of Canada
Self-regulatory organizations in Canada
Business organizations based in Canada
Securities industry in Canada
Financial services companies based in Toronto