REQUEST FOR COMMENT
MUTUAL FUND DEALERS ASSOCIATION OF CANADA (MFDA)
PROPOSED AMENDMENTS TO MFDA RULES 2.3.2 AND 2.3.3 – LIMITED TRADING AUTHORIZATION
The MFDA is publishing for public comment a proposal to delete MFDA Rules 2.3.2 and 2.3.3 that set out requirements for Limited Trading Authorization (LTA) from clients to facilitate trade execution. It is also proposed to make corresponding changes to record-keeping requirements set out under MFDA Rule 5.1 (together, Proposed Amendments).
The objectives of the Proposed Amendments are:
- reducing regulatory burden,
- ensuring that MFDA requirements reflect current industry practices,
- achieving greater consistency between MFDA requirements and those of other Canadian securities regulators, and
- addressing the potential for trade execution delays related to the requirement to use a prescribed form of LTA, having regard to challenges arising as a result of the COVID-19 global pandemic.