What is mutual fund dealers association?

The Mutual Fund Dealers Association (MFDA) is a self-regulatory organization (SRO) in Canada that regulates the distribution and sale of mutual funds by its members. It was established in 1998 and is a non-profit organization whose mandate is to protect investors and regulate the operations of its members.

The MFDA is responsible for overseeing the conduct of its members and enforcing compliance with its rules and regulations. Its members include mutual fund dealers, financial advisors, and other firms involved in the distribution of mutual funds in Canada.

The MFDA sets standards for the conduct of its members, which include requirements for client disclosure, client suitability, and conflicts of interest. The organization also provides training and education programs for its members to ensure they are knowledgeable about the industry and regulatory requirements.

Additionally, the MFDA investigates and takes disciplinary action against members who violate its rules and regulations. Disciplinary actions may include fines, suspensions, or expulsion from the organization.

Overall, the MFDA aims to promote confidence and stability in the Canadian mutual fund industry by ensuring its members are operating with integrity and following regulatory guidelines.