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What are the responsibilities of the Mutual Fund Dealers Association? How does its role compare to the roles of other regulators such as the provincial securities commissions and the Investment Dealers Association?

The Mutual Fund Dealers Association (MFDA), a not-for-profit federal corporation incorporated in June 1998, is responsible for regulating the distribution side of the mutual funds industry. MFDA does not regulate the funds or the fund manufactures -- this remains the responsibility of the securities commissions.

Mutual fund distributors who were already members of other self-regulating organizations at the inception of the MFDA are still regulated by that SRO. (IDA members continue to be regulated by the IDA). The MDFA has the ability to admit members, to audit, to enforce rules and apply penalties and to set up an investor protection fund. New dealers are expected to join immediately upon recognition by the MFDA. The MFDA has five regulatory committees, which are composed of industry volunteers, with strong input from independent dealers.