In its recent MFDA Special Report on Securities Industry Self-Regulation (the Report), The Mutual Fund Dealers Association (MFDA) has proposed the creation of a new securities regulator that if adopted, would replace MFDA.

The Report, which explores the self-regulatory organization (SRO) environment in Canada, proposes creating a  new “purpose-built” SRO. This new SRO, which the MFDA has dubbed NewCo (NewCo), would be one that the regulator believes is suited to the changes of the past decade, improves on the existing model, and is adaptable to the dynamic nature of securities regulation in Canada.

If the proposal goes forward, the MFDA would no longer exist as a separate SRO, allowing for the establishment of an “ideal” SRO (NewCo), based on cooperation with Canadian Securities Administrator (CSA) members, SROs, industry and public stakeholders. To further that end, NewCo would work alongside the Canadian Securities Administrators (CSA) and provide the CSA with greater SRO oversight capacity, registrant, and market conduct visibility and regulatory expertise, leading to what the MFDA calls “a modern CSA/securities industry regulator partnership.”

Bulletin #0809-M – MFDA Special Report on Securities Industry Self-Regulation can found on the website of the Mutual Fund Dealers Association of Canada.

For more information, please call Barbara Hendrickson at BAX Securities Law (416) 601 -1004.

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