DEFINITION of 'Mutual Fund Dealer's Association - MFDA'
A self-regulatory organization that oversees the Canadian mutual fund industry as it relates to the sales of mutual funds to retail investors. The Mutual Fund Dealer's Association (MFDA) was created in 1998, in response to the rapid growth of the mutual fund industry in Canada. The MFDA's goal is to protect investors by serving as a regulator and liaison between the mutual fund industry and the best interests of investors.
BREAKING DOWN 'Mutual Fund Dealer's Association - MFDA'
As of 2011, the MFDA regulates approximately 136 mutual fund dealers, who together employ over 73,000 sales personnel. This represents approximately $300 billion in assets under administration (AUA) within Canadian mutual funds. The MFDA is structured as a not-for-profit organization and is overseen by a 12-member board of directors. The Board is divided equally into six members representing the public and six members representing the mutual fund industry.