04:39:30 EDT Fri 29 Mar 2024
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Globe says the MFDA proposes changes to itself, IIROC

2020-02-04 07:58 ET - In the News

The Globe and Mail reports in its Tuesday, Feb. 4, edition that a report from the Mutual Fund Dealers Association of Canada (MFDA) proposes the creation of a new regulator that would combine oversight of mutual fund sector and investment dealers. The Globe's Clare O'Hara and Greg McArthur write that the Investment Industry Regulatory Organization of Canada (IIROC) and the MFDA have faced criticism for their overlapping oversight. IIROC oversees more than 170 investment firms and is recognized by all 13 provinces and territories, while the MFDA, which supervises about 90 member companies, is recognized by eight provinces. The report says there are about 1,000 entities outside the purview of the MFDA and IIROC who deal directly with Canadian investors -- such as exempt market dealers and scholarship plan dealers. Under the MFDA's proposed restructuring, regulatory oversight of exempt market dealers, scholarship plan dealers and portfolio managers would move from the provincial commissions to the newly formed organization. At the same time, stock market surveillance and regulation of trading would no longer be the responsibility of IIROC, but rather be assumed by the Canadian Securities Administrators.

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