Earlier this week, the Mutual Fund Dealers' Association (the "MFDA") released Bulletin #0715-M providing a review of activities and initiatives from 2016 and priorities and further initiatives for 2017.
The key activities undertaken in 2016 and the focus for 2017 can be categorized into three overlapping areas of focus: education, compliance, and enforcement.
In 2016, the MFDA presented at 24 events providing education and guidance on a number of topics for both Members and investors, including guides with respect to choosing an advisor and guides to compensation and performance reports. The MFDA further launched a website that, in 2017, will host investor webcasts on various topics.
The MFDA further focused on compliance in 2016, specifically in respect of suitability testing and know your client ("KYC") procedures. It is expected these initiatives will continue as a primary area of focus through 2017.
In 2016, the MFDA commenced 111 disciplinary proceedings against Members for alleged conduct including failure to supervised Approved Persons, outside activity, failing to handle client complaints, and conducting off-book securities related business. Additionally, signature falsification continues to be a priority for the MFDA. In January 2017, the MFDA released an MFDA Staff Notice regarding signature falsification that outlines the MFDA's response.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
