MFDA Releases Discussion Paper on Investor Questionnaires

Jul 21, 2014, 15:06 ET from Mutual Fund Dealers Association of Canada

TORONTO, July 21, 2014 /CNW/ - The Mutual Fund Dealers Association of Canada (MFDA) has published a Discussion Paper on the use of investor questionnaires to improve the Know-Your-Client (KYC) process.  The Discussion Paper and attached Sample Investor Questionnaire were developed through extensive research and thorough investor testing.

The KYC process is one of the most fundamental obligations under securities legislation and one of the most important elements of investor protection.  However, the process can be challenging for both clients and financial advisors.  Measuring risk tolerance is complex and as a result risk profiling is not an exact science. Nevertheless, a well-designed questionnaire can make an important contribution to the KYC process.

"Since its inception, the MFDA has focused on suitability as a key regulatory priority.  The work of the MFDA in this area has resulted in considerable positive change and strengthened investor protection. The Discussion Paper and Sample Investor Questionnaire are a continuation of our efforts to provide practical guidance and tools to Members to further improve the advisory process for the benefit of investors and financial advisors," said MFDA President and Chief Executive Officer Mark Gordon.


The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 110 Members and their approximately 80,000 Approved Persons with a mandate to protect investors and the public interest.

SOURCE Mutual Fund Dealers Association of Canada