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BULLETIN #0782-P
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Paige Ward

General Counsel, Corporate Secretary and Vice President, Policy

(416) 943-5838

pward@mfda.ca

BULLETIN #0782-P

April 4, 2019

Policy

Proposed Amendments to MFDA Rule 2.3.1(b) (Discretionary Trading)

On April 4, 2019, the British Columbia Securities Commission (“BCSC”) published for public comment proposed amendments to MFDA Rule 2.3.1(b) (Discretionary Trading).  The proposed amendments would allow Members to engage in very limited discretionary trading, so that they are able to directly perform fund substitutions, and make changes to portfolio asset allocations within the pre-established parameters of the mutual fund model portfolios offered by them.

The proposed amendments are intended to respond to Member requests for regulatory flexibility, improve client service, and reduce regulatory burden, while maintaining or enhancing investor protection.  Conforming consequential amendments to MFDA Rule 2.2.5 (Relationship Disclosure) are also proposed.

Comments

Comments should be made in writing. One copy of each comment letter should be delivered by August 2, 2019 (within 120 days of the BCSC’s publication of the proposed amendments), 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 amendments, please go to: Proposed MFDA Rule Amendments.

The proposed amendments may also be viewed on the BCSC’s website at: https://www.bcsc.bc.ca.

 

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