Your mutual fund advisor asks you for a loan for a business venture she is working on. She says that she will pay back the principal in two years and pay you 4.5% interest a year. What should you do?
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CORRECT!
Under MFDA Rules, advisors are not allowed to accept loans from clients as this is considered a conflict of interest. It is never appropriate for your mutual fund advisor to ask you for a loan. In fact, your advisor has to avoid any irreconcilable conflict of interest. Other conflicts of interest that are not appropriate include an advisor lending money to clients. In addition, mutual fund advisors may not act as a power of attorney for a client or as estate trustee under a client’s will.
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MFDA and IIROC have consolidated
As of January 1, 2023 the MFDA and IIROC have come together as New Self-Regulatory Organization of Canada (New SRO).
New SRO has assumed the regulatory responsibilities of the MFDA and IIROC.
We have set up an interim website for updates and information related to the New SRO including:
Executive Management
Governance
New SRO Rules
Member Application
Investor Office and the Investor Advisory Panel
Information concerning mutual fund dealers registered in Québec
Complaints
Careers
Enforcement proceedings, membership lists, continuing education, investor education resources and any other information not set out above continue to reside on www.mfda.ca and www.iiroc.ca.
