Industry


NOTICE OF COMMISSION APPROVAL

MUTUAL FUND DEALERS ASSOCIATION OF CANADA (MFDA)

CONTINUING EDUCATION REQUIREMENTS FOR MFDA MEMBERS AND THEIR APPROVED PERSONS

The Ontario Securities Commission (Commission) has approved proposed MFDA Rules 1.2 (Definitions) and 1.2.6 (Continuing Education), and proposed MFDA Policy No. 9 – Continuing Education (CE) Requirements. The rules and policy establish continuing education (CE) requirements for MFDA members and their approved persons, and minimum standards for complying with these requirements to assist approved persons with maintaining high standards of professionalism, and keeping their industry knowledge current.

The proposed rules and policy were published for public comment on March 22, 2018. Fifteen comment letters were received. The MFDA has made non-substantive changes to the rules and policy as published in 2018 in response to the comments received. A summary of the public comments and the MFDA’s responses, as well as a blacklined copy of the proposed rules and policy showing changes made to the version published for comment can be found at http://osc.gov.on.ca. The rules and policy will be effective on a date to be subsequently determined by the MFDA.

Pursuant to Schedule A, section 12(H) of the MFDA’s current recognition order, the Commission will require that the MFDA provide the following additional reporting relating to the MFDA’s CE Reporting and Tracking System (Tracking System):

  1. Prompt notification if and when it becomes evident that the development costs of the Tracking System will materially exceed the budgeted amount approved by the MFDA’s Board of Directors.
  2. Prompt notification if and when it becomes evident that the Tracking System will not become available to intended end users within the timeline approved by the MFDA’s Board of Directors.
  3. On a quarterly basis, details of any outreach which the MFDA has conducted with intended end users (including, but not limited to, accreditation providers) in regard to the development of the Tracking System.
  4. On a biennial basis, a report prepared by a qualified party in accordance with established audit standards which provides details of a review designed to ensure that the Tracking System has an adequate system of internal controls (including, but not limited to, integration into the MFDA business continuity and disaster recovery plans). The MFDA shall discuss the choice of the qualified party and scope of the review with the Commission before finalizing any engagement.

In addition, the British Columbia Securities Commission; the Alberta Securities Commission; the Financial and Consumer Affairs Authority of Saskatchewan; the Financial and Consumer Services Commission of New Brunswick; the Manitoba Securities Commission; the Nova Scotia Securities Commission; the Office of the Superintendent of Securities, Service Newfoundland and Labrador; and the Prince Edward Island Office of the Superintendent of Securities Office have either not objected to or have approved the rules and policy.