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BULLETIN #0800-P
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Paige Ward

General Counsel, Corporate Secretary and Vice President, Policy

(416) 943-5838

pward@mfda.ca

BULLETIN #0800-P

December 12, 2019

Policy

For Distribution to Relevant Parties within your Firm

Approval of Proposed Amendment to MFDA By-Law No. 1, Subsection 24.A (Ombudservice)

Subsection 24.A.1 of MFDA By-law No. 1 requires each MFDA Member to participate in an ombudservice approved by the Board of Directors. The approved ombudservice is the Ombudsman for Banking Services and Investments (“OBSI”). Subsection 24.A.4 addresses the disclosure of information by OBSI to the MFDA in connection with OBSI’s investigation or review of a complaint.

The disclosure of information by OBSI to regulators (including the MFDA) is currently addressed under section 16.5 of the OBSI Terms of Reference. The current provision in the OBSI Terms of Reference is broader with respect to the type of information that can be provided to regulators than section 24.A.4 of MFDA By-law No.1.

The proposed amendment would delete subsection 24.A.4 of MFDA By-Law No. 1, and is intended to ensure that MFDA By-law provisions do not unnecessarily limit, conflict, or give rise to potential inconsistencies with the provisions of section 16.5 of the OBSI Terms of Reference.

On March 28, 2019, the British Columbia Securities Commission (“BCSC”) published the proposed amendment for public comment. On December 12, 2019, the Recognizing Regulators published a formal Notice of Approval/Non-Objection in respect of the proposed amendment. The proposed amendment to By-law No. 1 subsection 24.A has received all required approvals and is now in effect.

To view the Notice of Approval/Non-Objection, please go to the BCSC website.

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