
Mutual Fund Dealers Association (MFDA)
The Mutual Fund Dealers Association of Canada (MFDA) is a self-regulatory organization (SRO) that oversees the Canadian mutual fund industry as it relates to the sale of mutual funds to retail investors. The Mutual Fund Dealers Association of Canada (MFDA) is a self-regulatory organization (SRO) that oversees the Canadian mutual fund industry as it relates to the sale of mutual funds to retail investors. This will bring MFDA members more in line with the members of several other Canadian regulatory bodies, such as the Investment Industry Regulatory Organization of Canada (IIROC), by requiring a number of professional development credits on a two-year cycle. Included in the MFDA's 2018-2022 Strategic Plan is a key initiative to impose a continuing education requirement on MFDA advisers who, unlike life insurance agents and financial planners, do not currently need to earn continuing education credits to maintain their license in Canada. The Mutual Fund Dealers Association of Canada is a self-regulatory organization that oversees the Canadian mutual fund industry.

What Is the Mutual Fund Dealers Association?
The Mutual Fund Dealers Association of Canada (MFDA) is a self-regulatory organization (SRO) that oversees the Canadian mutual fund industry as it relates to the sale of mutual funds to retail investors.



Understanding the Mutual Fund Dealers Association (MFDA)
The Mutual Fund Dealers Association of Canada (MFDA) was formed in 1988 as a non-profit corporation at the behest of the Canadian Securities Administrators (CSA). Its creation came in response to a ten-fold increase in the size of the mutual fund industry in the late 1980s, and amid concerns the industry lacked a sufficient regulatory structure.
Among the MFDA's stated goals is to regulate the operations of its member dealers to maintain public faith in the Canadian mutual fund industry. As an SRO, its implicit motivation is to minimize regulation by the government. A 13-member board of directors, with six public directors and six industry directors, oversees MFDA operations.
The self-regulatory organization is recognized by eight out of 10 provincial securities commissions in Canada. By its own account, the MFDA members and their advisors have more than $700 billion in client assets under administration (AUA). The MFDA claims its members financially advise nine million Canadian households.
The Authority of the MFDA
As a self-regulatory organization, the MFDA falls under the supervision of the CSA but has the freedom to set and enforce regulations beyond the minimums defined by the law. In the eight provinces which formally recognize the MFDA, mutual fund dealers must be members of the MFDA to operate. In Québec, the MFDA works cooperatively with the Autorité des marchés financiers (AMF).
MFDA 2018-2022 Strategic Plan
One way the MFDA intends to increase public confidence in the Canadian mutual fund industry is through the education of its members. Included in the MFDA's 2018-2022 Strategic Plan is a key initiative to impose a continuing education requirement on MFDA advisers who, unlike life insurance agents and financial planners, do not currently need to earn continuing education credits to maintain their license in Canada.
This will bring MFDA members more in line with the members of several other Canadian regulatory bodies, such as the Investment Industry Regulatory Organization of Canada (IIROC), by requiring a number of professional development credits on a two-year cycle. Many such credits will likely overlap with the credit requirements of related industry self-regulatory organizations, but the MFDA has pledged to work to avoid unnecessary duplication.
Related terms:
Assets Under Administration (AUA)
Assets under administration (AUA) is a measure of the total assets for which a financial institution provides administrative services. read more
British Columbia Securities Commission (BCSC)
The British Columbia Securities Commission (BCSC) is an independent government agency responsible for regulating securities trading in British Columbia, Canada. read more
Canadian Securities Administrators (CSA)
Canadian Securities Administrators is a collective forum composed of all the territorial and provincial securities regulators of Canada. read more
Investment Industry Regulatory Organization of Canada (IIROC)
The Investment Industry Regulatory Organization of Canada oversees investment dealers, brokers and trading activity in debt and equity markets. read more
Mutual Fund
A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities, which is overseen by a professional money manager. read more
Ontario Securities Commission (OSC)
The Ontario Securities Commission is the regulatory body charged with enforcing securities laws in the Canadian province of Ontario. read more
Short-Form Prospectus Distribution System (SFPDS)
The Short-Form Prospectus Distribution System (SFPDS) is a standard system Canadian regulators use to distribute changes to the prospectus for securities. read more
Self-Regulatory Organization (SRO)
A self-regulatory organization (SRO) is able to create and enforce industry regulations and standards by itself. read more
Universal Market Integrity Rules (UMIR)
Universal Market Integrity Rules (UMIR) are a set of rules governing trading practices in Canada controlled by an independent regulator. read more