News Release

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For further information, please contact:

Ian Strulovitch

Director, Communications & Public Affairs and Senior Legal Counsel

(416) 943-7425

istrulovitch@mfda.ca

MFDA begins development of design and implementation roadmap for new self-regulatory organization

February 2, 2021 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) today announced it has begun the development of a design and implementation roadmap for the creation of a new self-regulatory organization (SRO) for Canada’s securities industry, as originally outlined in the MFDA’s 2020 Special Report: A Proposal for a Modern SRO.

The roadmap is intended to support the ongoing consultations on fundamental reform of securities industry self-regulation currently being conducted under the leadership and direction of the Canadian Securities Administrators (CSA) for the benefit of all Canadians. Once it is complete, the MFDA will provide the roadmap to the CSA and all interested stakeholders to assist and further inform the CSA’s ongoing review of the national framework for securities self-regulation.

The new SRO envisioned by the MFDA offers a wide range of benefits, including increased public confidence, burden reduction and strengthened governance and accountability. The MFDA’s roadmap will offer tangible steps and a realistic timeline for the creation of such an entity.

“Our goal is to empower and assist all stakeholders – investors, industry, regulators and governments – in envisioning a clear path toward a new SRO driven first and foremost by the public interest, and underpinned by sound governance, industry expertise and responsiveness to investor and market needs,” said MFDA President and CEO Mark Gordon. “The MFDA hopes its work will assist CSA members in their continuing consultation and review of the SRO framework in Canada.”

Mr. Gordon added: “A simple merger of the MFDA and the Investment Industry Regulatory Organization of Canada, with their respective legacy challenges under an outdated framework, will not generate meaningful cost savings and regulatory burden reduction while instilling greater public confidence in our regulatory system. Instead, a bold new vision and open and inclusive collaboration between the two organizations, as well as the CSA, investor advocates and market participants are necessary to create meaningful and lasting change. A clear implementation roadmap, which enables everyone to visualize how such change can be achieved, is a critical step in this effort.”

The MFDA’s 2020 proposal aligns with the January 2021 final report of the Ontario Capital Markets Modernization Taskforce, which has recommended to the Ontario government and the CSA the creation of a “new single SRO.”

Chris Nicholls, Chair of the MFDA Board of Directors, said: “Our overarching public-interest focus in preparing this roadmap is to assist the CSA and governments in their important deliberations regarding how best to develop a modern regulatory model for Canada that will serve the interests of all stakeholders in a fair and balanced manner.”

The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its Members and their approximately 81,000 Approved Persons with a mandate to protect investors and the public interest. For more information about the MFDA’s complaint and enforcement processes, as well as links to ‘Check an Advisor’ and other Investor Tools, visit the For Investors page on the MFDA website.