MFDA unveils new board proposal

(August 29, 2003) The Mutual Fund Dealers Association of Canada has unveiled amendments to its corporate by-laws which will reduce the number of board members and shift its composition toward the public.

When the MFDA was founded in 1998, the board of directors was made up with equal representation from IFIC, the IDA and the public. This was an interim board, as a condition of its self-regulatory status required the MFDA to develop a corporate governance plan and to implement that plan by the third annual meeting of members. That meeting is scheduled to take place in December 2003.

Through attrition, the original board of 21 has been reduced over the past five years to 15. The proposed governance plan will see this board reduced to 13, with six members coming from the public, six from the mutual fund industry, as well as a President and CEO.

The amendments also set a definition of a public director to ensure they are not affiliated with the fund industry.

At least four of the directors must come from outside central Canada, to ensure regional representation.

Filed by Steven Lamb, Advisor.ca, slamb@advisor.ca