On June 30, 2016, the British Columbia Securities Commission (“BCSC”) published for public comment proposed new MFDA Policy No. 8 Proficiency Standard for Approved Persons Selling Exchange Traded Funds (“ETFs”) (“Policy No. 8”).
Under MFDA Rule 1.2.3 (Education, Training and Experience), an Approved Person must not perform an activity that requires registration under securities legislation unless the Approved Person has the education, training and experience that a reasonable person would consider necessary to perform the activity competently, including understanding the structure, features and risks of each security that the Approved Person recommends. Similar requirements exist under National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (“NI 31-103”).
MFDA Policy No. 8 would establish minimum standards in respect of proficiency for Approved Persons trading in ETFs. These standards are intended to satisfy requirements under MFDA Rule 1.2.3.
Comments should be made in writing. One copy of each comment letter should be delivered by September 28, 2016 (within 90 days of the BCSC’s publication of the proposed new Policy No. 8), addressed to the attention of: Paige Ward, General Counsel, Corporate Secretary and Vice-President, Policy, Mutual Fund Dealers Association of Canada, 121 King St. West, Suite 1000, Toronto, Ontario, M5H 3T9 and one copy addressed to the attention of: Anne Hamilton, Senior Legal Counsel, British Columbia Securities Commission, 701 West Georgia Street, P.O. Box 10142, Pacific Centre, Vancouver, British Columbia, V7Y 1L2.
Those submitting comment letters should be aware that a copy of their comment letter will be made publicly available on the MFDA website at www.mfda.ca.
To view the proposed Policy, please go to: https://mfda.ca/regulation/propamend.html.
The proposed Policy may also be viewed on the BCSC’s website.