Strategic Goal #3 – Update

Update

 

We will evaluate our regulatory standards and internal processes and ensure a professional and qualified staff to be recognized as an effective, progressive and responsible regulator.

We will be a responsible regulator by:

  • Assessing our regulatory requirements to ensure they continue to be relevant and appropriate
  • Reviewing MFDA operations and processes to ensure cost effectiveness and improved efficiencies
  • Maintaining and attracting expert staff and providing training on emerging risks and industry trends

Key initiatives include:

  • Engaging in research to deliver data-driven regulation focusing on key risk areas
  • Exploring alternatives to improve transparency of costs for mutual fund investors
  • Reviewing the MFDA Rulebook to improve clarity, ease of use and relevance
  • Enhancing core staff competencies
  • Maintaining currency of MFDA internal technology, systems and processes to effectively and securely achieve our regulatory mandate

We are an effective, progressive and responsible regulator by employing highly professional and qualified staff and routinely evaluating our operational processes and regulatory functions.

Our staff is key to our continued success as an effective regulator. We must ensure that we continue to have the right people in the right positions and that their knowledge and expertise keeps pace with the change and evolution occurring in the industry. Attracting and retaining highly professional and qualified staff and ensuring that we have the appropriate talent and capability in-house is critical to fulfilling our mandate and accomplishing our goals. We will continue to invest in our staff to ensure that they have the skills, knowledge, tools and processes to effectively perform their duties. We will ensure that staff has appropriate training to understand Member operations, effectively utilize professional judgement and understand the different business models through which our Members operate. As the industry continues to develop, with new products, technologies, regulations and demographics, it is vital that our staff remain current. Staff will need to maintain their skills, learn new ones and be aware of future skills that may be required.

We will continue to challenge our operational processes and regulatory functions for efficiencies, including the use of technology to maximize our performance and fulfill our mandate of protecting the investing public. We will expand our use of a risk-based approach to allocate resources on a proactive basis and where harm has occurred to investors. We will also use various information sources to target high-risk areas and focus our attention where required. We will focus on our key known risks as well as focus on new developments that might require a regulatory response.

Stakeholder engagement in the policy development process is vital as it helps to ensure regulatory requirements are practical and appropriate. Seeking input early in the policy development process leads to a greater understanding and acceptance of the regulatory requirements and ultimately better compliance. We review our regulatory requirements on an ongoing basis to ensure that the objectives are being achieved in a reasonable manner. When changes to our regulations are required, we will drive responsible Rules that are well defined and supported by clear and helpful tools. Our culture will demonstrate a responsible regulatory approach.

Outcomes

The outcomes of updating processes will be:

  • Achieve investor protection objectives while avoiding undue regulatory burden. MFDA requirements and regulatory activities achieve the appropriate balance between investor protection and cost and impact on Members.
  • Attract and retain professional and expert staff. MFDA staff deal with all stakeholders in a highly professional and competent manner, exhibiting extensive knowledge and expertise regarding regulatory requirements and approaches, Member operations and practices, and investor protection needs.
  • Efficient, current and cost effective regulatory operations. The MFDA demonstrates that in carrying out our core regulatory operations, we use our resources in an efficient, current and cost effective manner.

Strategies

Assess regulatory requirements to ensure relevance and appropriateness
Given ongoing industry evolution, we will continually monitor and engage our stakeholders to understand potential changes that may be required to our regulatory requirements. When change is required, we will determine the most effective regulatory approach and implement it in a clear and transparent fashion.

Assess MFDA systems and processes to ensure cost effectiveness and improved efficiencies
Our stakeholders expect MFDA processes and systems to be effective, efficient and secure. We will review our key systems and processes on an ongoing basis to ensure that they are appropriate. We will explore opportunities to use technology to increase efficiencies.

Focus on staff expertise and engagement
Expert and engaged staff are a crucial element in enabling us to achieve our regulatory mandate. Staff must have the required knowledge and expertise to work effectively in an evolving regulatory environment. We will regularly review the skills and knowledge required by our staff and provide relevant training in core areas as well as in emerging technologies and regulatory and industry trends.