Mutual Fund Dealer's Association - MFDA

AAA

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.

RELATED TERMS
  1. Dealer

    A person or firm in the business of buying and selling securities ...
  2. Full-Service Broker

    A broker that provides a large variety of services to its clients, ...
  3. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  4. Market Maker

    A broker-dealer firm that accepts the risk of holding a certain ...
  5. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  6. Equity

    The value of an asset less the value of all liabilities on that ...
Related Articles
  1. Mutual Funds & ETFs

    4 Strategies For Managing A Portfolio Of Mutual Funds

    Discover some common strategies to devise a plan and maintain your holdings to reflect it.
  2. Mutual Funds & ETFs

    How To Pick A Good Mutual Fund

    Learn how to evaluate mutual funds and find the right one for you.
  3. Mutual Funds & ETFs

    Watch Out For The Mutual Fund Metamorphosis

    A new name may make a fund look fresh and exciting, but has anything really changed?
  4. Mutual Funds & ETFs

    Should You Follow Your Fund Manager?

    Learn how to tell if a fund in flux is still a suitable investment.
  5. Mutual Funds & ETFs

    That's A (Mutual Fund) Wrap!

    These advisory programs offer professional supervision and other handy tools for building a diversified portfolio.
  6. Mutual Funds & ETFs

    Top 5 Bear Market Mutual Funds

    Discover five bear market mutual funds that investors can turn to for generating maximum capital appreciation during a bear market.
  7. Mutual Funds & ETFs

    4 Mutual Funds to Consider If Interest Rates Rise

    Learn what mutual funds will perform best if interest rates rise. Interest rates can rise due to inflation or to an improving economy.
  8. Mutual Funds & ETFs

    Top 5 Chinese Mutual Funds

    Learn about some of the most popular and best performing mutual funds that offer investors exposure to the important emerging market economy of China.
  9. Investing Basics

    What is a Settlement Date?

    A settlement date is the day a security trade must be settled.
  10. Investing Basics

    Explaining Risk-Adjusted Return

    Risk-adjusted return is a measurement of risk for an investment or portfolio.
RELATED FAQS
  1. Is there a situation in which wash trading is legal?

    Wash trading, the intentional practice of manipulating a stock's activity level to deceive other investors, is not a legal ... Read Full Answer >>
  2. What action is the SEC likely to take on 12b-1 fees?

    The Securities and Exchange Commission (SEC) may take action to impose greater regulation on how 12b-1 fees are used, or ... Read Full Answer >>
  3. What is considered a reasonable 12b-1 fee?

    A reasonable 12b-1 fee is generally considered to be 0.25% of the assets of the mutual fund. The maximum amount allowed for ... Read Full Answer >>
  4. What are some of the most common mutual funds that give exposure to the retail sector?

    There are a number of mutual funds that give exposure to the retail sector. Three of the most popular funds are the Fidelity ... Read Full Answer >>
  5. What is the 12b-1 fee meant to cover?

    A 12b-1 fee in a mutual fund is meant to cover the fees of companies and individuals through which investors of a fund buy ... Read Full Answer >>
  6. What are the most popular mutual funds that give exposure to the utilities sector?

    Some of the most popular mutual funds that provide exposure to the utilities sector include American Century Utilities, Prudential ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Financial Crisis

    A situation in which the value of financial institutions or assets drops rapidly. A financial crisis is often associated ...
  2. Election Period

    The period of time during which an investor who owns an extendable or retractable bond must indicate to the issuer whether ...
  3. Shanghai Stock Exchange

    The largest stock exchange in mainland China, the Shanghai Stock Exchange is a nonprofit organization run by the China Securities ...
  4. Dead Cat Bounce

    A temporary recovery from a prolonged decline or bear market, followed by the continuation of the downtrend. A dead cat bounce ...
  5. Bear Market

    A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment ...
  6. Alligator Spread

    An unprofitable spread that occurs as a result of large commissions charged on the transaction, regardless of favorable market ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!