Last month, provincial securities regulators approved Policy
No. 8 (Policy) of The Mutual Fund Dealers
Association of Canada (MFDA). The Policy
establishes proficiency standards for mutual fund dealing
representatives (Representatives) who wish to sell
exchange-traded fund (ETFs).
Although Representatives are legally permitted to sell certain
types of ETFs (which are a type of mutual fund), to date, the
number of Representatives actually doing so has been limited.
Representatives have been restricted both in their access to
systems permitting the settlement of an ETF sale, as well as
educational opportunities that would allow for required proficiency
standards to be met.
Under MFDA rules, in order to sell any mutual fund security,
Representatives must ensure they have the education, training and
experience necessary to perform such activity competently.
Historically, however, educational courses available to
Representatives in order to sell conventional mutual
