On March 28, 2019, the British Columbia Securities Commission (“BCSC”) published for public comment a 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.
National Instrument 31-103 (Registration Requirement, Exemptions and Ongoing Registrant Obligations), section 13.16, which relates to participation by registered firms in OBSI, does not contain a provision similar to subsection 24.A.4 of MFDA By-law No.1. The deletion of subsection 24.A.4 would ensure that the scope of information which OBSI can provide to regulators is the same, irrespective of whether such information is being provided to a provincial regulatory authority in respect of a MFDA Member or a non-SRO registrant, or to the MFDA in respect of a Member.
Comments should be made in writing. One copy of each comment letter should be delivered by June 26, 2019 (within 90 days of the BCSC’s publication of the proposed amendment), 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 amendment, please go to: Proposed Amendment to MFDA By-Law No. 1.
The proposed amendment may also be viewed on the BCSC’s website at: https://www.bcsc.bc.ca.