Posted by Anjali Kaur on Jun 16, 2022

Registrant Responsibilities

Dealing representatives or mutual fund registrants have responsibilities to their clients, and they have ethical standards and legislation that they must follow. 

How to behave being an MFD?

You are expected to:

  1. Deal fairly, honestly and in good faith with clients.
  2. Observe high ethical standards and conduct in business dealings.
  3. Refrain from engaging in unbecoming business conduct and practices.
  4. Do not do anything that is detrimental to the public interest.

The MFDA Standard of Conduct assumes that you will have the training and experience expected of a dealing representative.

The expectation that you will adhere to the standard of conduct applies not only to the letter of the regulation but also to the spirit of the regulation.

How to earn respect as a good MFD?

  1. Understanding the client’s financial circumstances.
  2. Presenting all investment recommendations fairly and without false or misleading statements.
  3. Always making recommendations in the best interests of the client.
  4. They are clearly distinguishing fact from comment when making recommendations.
  5. Avoiding or thoroughly disclosing conflicts of interest that could be perceived to affect your judgment in giving advice.
  6. Protecting the confidentiality of client information.
  7. Maintaining your proficiency by acquainting yourself with new laws and regulations, and new products in the market.

Time to Test

  1. Jennifer has a married couple as her clients. They are going through a divorce. Both spouses ask Jennifer probing questions about the other partner’s financial dealings in accounts that are not joint name accounts. In her eagerness to retain the business of both her clients, she would like to disclose information to both spouses.

Which course of action would be the most appropriate?

Jennifer should not discuss dealings of one spouse with the other, without express consent from the account holder. Ideally, Jennifer should manage the account of only one spouse, and refer the other person to a different dealing representative.

2. Which of the following actions are examples of good business practices?

Treat the client fairly, honestly, and in good faith.

Useful Links

MFDA Staff

Thank You!

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