What is the MFDA?
The Mutual Fund Dealers Association of Canada (MFDA) is the self-regulatory organization (SRO) for mutual fund dealers in Canada.
What is a Mutual Fund Dealer?
A mutual fund dealer is a company that is registered with the provincial securities commissions to distribute mutual funds to Canadian investors. Licensed sales representatives and advisors are employees of, or act as agents of, the dealer. The MFDA does not regulate Canadian mutual fund companies.
Are all Mutual Fund Dealers Members of the MFDA?
The MFDA regulates the actions of its Members nationally. In most provinces, mutual fund dealers are required to be Members of the MFDA. However, some firms have been granted exemptions from MFDA membership by the provincial commissions. Firms that are registered in the category of investment dealer – those firms that engage in the distribution of stocks, bonds, mutual funds, etc. – must become Members of another SRO, the Investment Industry Regulatory Organization of Canada (IIROC).
How do I know if my Dealer is a Member of the MFDA?
Visit the Directory of Members on this website. If your dealer is listed here, it is an MFDA Member.
How do I know my Advisor is Registered?
The Canadian Securities Administrators have developed a National Registration Search (NRS) for investors to check the registration of a firm or individual when considering an investment opportunity or using a financial advisor. Investors can use NRS to search for information about individuals and firms registered with the participating securities regulatory authorities.
An NRS search now allows investors to:
- check registration status dating back to March 14, 2003;
- determine the category of registration that applies to an individual or a firm;
- understand any terms or conditions that apply to a registration; and
- view the participating jurisdictions where a firm or individual is registered.
Follow this link to view the National Registration Search.
What is a Self-Regulatory Organization?
A self-regulatory organization (SRO) is an organization that has been given the authority and the responsibility to regulate its Members. SROs have delegated responsibilities to ensure that SRO Members meet agreed-upon standards. The SROs regulate markets and trading as well as Member firms, their employees, and their business practices. The MFDA oversees the actions of its Members and is in turn overseen by the Canadian Securities Administrators (CSA). The CSA is a national group comprised of the provincial securities commissions and administrators.
How Does the MFDA Enhance Investor Protection?
Membership in the MFDA means that mutual fund dealers are subject to active and effective regulation. Membership is granted through a formal application process whereby Member firms must satisfy the MFDA's standards.
The MFDA conducts regular sales and financial compliance reviews of its Members to ensure compliance with its Rules, Policies and By-Law. The MFDA has the power to enforce standards and conduct investigations. Follow this link to view current MFDA disciplinary proceedings.
What About an Investor Protection Fund?
When the MFDA was recognized as an SRO, it was required to establish an investor protection fund for the customers of its Members. For more information on the MFDA Investor Protection Fund, please visit the IPC section of this website.
What Should I Do If I Am Unsatisfied With My Dealer?
If you are unsatisfied with the actions of your sales representative and/or your dealer, there are a
number of things that you can do.
Your first step should always be to address your concern with your sales representative. Most often, the person with whom you dealt can resolve any problems with it in a timely fashion. However, if you do need to take the issue further, you may also contact the dealer's Compliance Department and relay any concerns that you may have.
Should investors be unable to satisfactorily resolve any complaints with the dealer, investors can contact the MFDA’s Enforcement Branch. Please visit the Complaints Section of this website for more details about the complaints process.
Need Information?
For information concerning the Mutual Fund Industry in Canada, including industry statistics and Mutual Fund Company information, contact the Investment Funds Institute of Canada at www.ific.ca. For other inquiries, including the registration status of sales representatives, contact the securities commission in your province of residence.
To research the performance of your mutual funds, please check the business section of your local newspaper.
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