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Bulletin #0665-M

Membership Information
The Benefits of Working with an MFDA Member Brochure

Contact: Ian Strulovitch
Director, Public Affairs
December 1, 2015
Phone: 416-943-7425

MFDA Bulletin

Membership Information

For Distribution to Relevant Parties within your Firm

The Benefits of Working with an MFDA Member Brochure

MFDA staff has prepared the attached brochure entitled The Benefits of Working with an MFDA
, for Members to provide to clients. The purpose of the brochure is to promote client
awareness of the regulatory oversight exercised by the MFDA in respect of MFDA Members and
their Approved Persons, and the value of working with an MFDA Member.

Delivery of this document is not mandatory but rather is a resource for Members to use at their

The brochure provides a brief description of the MFDA and the benefits to clients of working
with an MFDA Member, such as the protections provided by the MFDA Rules, registration of
Members and Approved Persons, Member complaint handling standards, and coverage under the
MFDA Investor Protection Corporation.

A copy of the The Benefits of Working with an MFDA Member brochure is available on the
MFDA website for reference at:

docs# 455011

determine that MFDA rules and standards are
About the MFDA
being met. In addition, MFDA Members have
The Mutual Fund Dealers Association of
procedures to supervise the activities of their
Canada (the “MFDA”), is a national Self-
Advisors and must perform daily supervision to
Regulatory Organization (“SRO”) and
ensure that all business is conducted according
regulates its Members and their advisors
to regulatory requirements.
who are mutual fund dealers in Canada1.

Financial Requirements
The MFDA regulates in the public interest
MFDA Members are required to maintain
and by working with an MFDA Member and
certain levels of capital to ensure that they can
Advisor you benefit from the regulatory
properly function. MFDA Members must fully
protections provided by the MFDA.
segregate client assets from Member assets, and

are prohibited from using uninvested client cash
The MFDA is accessible to the public and
in their operations. The MFDA monitors its
information relating to the MFDA and its
Members’ financial condition, conducts on-site
regulatory activities is available on the
examinations, and requires its Members to
MFDA website at
submit monthly and annual financial reports.

MFDA Members must have their financial

statements audited annually.
Rules to Protect Investors

The MFDA has detailed Rules that exist to
Disciplinary Action for Rule Breaches
protect investors like you. All MFDA Members
MFDA Members and Advisors who breach the
and Advisors are required to abide by these
rules are subject to strict disciplinary measures
Rules. One of the many ways that these Rules
which can include a permanent ban from selling
protect you is by requiring that MFDA
mutual funds, monetary fines and warning or
Members and Advisors recommend investments
cautionary letters. The type of discipline
that are suitable for you, based on facts and
imposed generally depends on the severity of
circumstances specific to you. MFDA Members
the misconduct.
obtain certain information from you for this

purpose as further outlined in the Opening Your
Public Registrations Records
Investment Account Information Sheet.

All MFDA Advisors are required to undergo
As a regulator the MFDA has various ways to
specific background checks and meet specific
determine MFDA Member and Advisor
proficiency requirements before they can deal in
compliance with the Rules such as:
mutual funds. In addition, all MFDA Members
and Advisors are required to be registered with
Compliance Examinations
the securities regulatory authority in each
The MFDA regularly conducts compliance
Province and Territory in which they do
examinations of all MFDA Members to
business. This means that there is a publically
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1Except for activity which occurs solely in Quebec.

available register of all MFDA Members and
recommendation that an MFDA Member
Advisors. A full list of MFDA Members is
compensate you (up to $350,000) if it
available on the MFDA website at
determines that you have been treated unfairly, You
taking into account the criteria of good financial
can check the registration status of your Advisor
services and business practice, relevant codes of
practice or conduct, industry regulation and the

law. More information on OBSI can be found at
Individuals who are not registered in your
Province or Territory cannot sell mutual

funds to you or advise you on mutual funds,
Protection from a Member Insolvency
and you should not deal with them.
MFDA Members contribute to the MFDA

Investor Protection Corporation (the “MFDA
Member Complaint Handling Standards
IPC”). The MFDA IPC exists to provide
If you have a complaint about the advice or
compensation to you if your assets are
services you received, it is important to know
unavailable because an MFDA Member
that each MFDA Member is required to have a
becomes insolvent. Coverage is in the amount
clear process for clients to submit a complaint, a
of up to $1 million per customer account in
single point of contact for complaints, and a
respect of the loss of customer property held by
robust procedure for resolving complaints. In
an MFDA Member.
addition, MFDA Members are required to

ensure that client complaints are dealt with
To learn more about the MFDA IPC please visit
promptly and fairly.

If you are not satisfied with an MFDA

Member’s response to your complaint, you can

file a complaint with the MFDA which will
review the matter, and ensure that it is handled
Disciplinary Hearing Process for
to the required standard.
MFDA Members and Advisors

Additionally, if you are not satisfied with an

MFDA Member’s response to your complaint
The MFDA holds disciplinary hearings against
you are entitled to use the services of the
Members and Advisors who commit serious
Ombudsman for Banking Services and
breaches of MFDA rules. You can learn more
Investments (“OBSI”). OBSI investigates
about the disciplinary hearing process on the
unresolved complaints and works informally
MFDA website at
and confidentially to find a fair outcome, and is

independent of government, the financial
You can check whether your Advisor or Member
services industry and the MFDA. All MFDA
has been, or is currently the subject of an MFDA
Members are required to participate in the
disciplinary hearing on the MFDA website at
dispute resolution process offered by OBSI, and
there is no cost to investors who use OBSI’s

services. OBSI can make a non-binding

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