Who is Sterling Mutuals Inc?
Sterling Mutuals Inc of Windsor Ontario is the dealer our office operates through. Just like a real estate agent has to operate through a broker like RE/MAX, Century21 or Coldwell Banker, our office has to conduct our mutual funds business through a dealer.
Here's an explanation of the dealership structure in Canada:
An MFDA* (Mutual Fund Dealers Association of Canada) dealer refers to a financial institution that is registered with the MFDA and authorized to sell mutual funds to investors in Canada. The MFDA is a self-regulatory organization (SRO) that oversees the distribution and sale of mutual funds within Canada.
The MFDA was established by the Canadian government to regulate the activities of mutual fund dealers and protect the interests of investors. It sets and enforces rules and regulations that govern the conduct and operations of its members, ensuring compliance with industry standards and investor protection requirements.
To become an MFDA dealer, a firm must meet specific qualifications and adhere to strict regulatory guidelines. They must undergo a registration process with the MFDA, which involves fulfilling proficiency requirements, submitting documentation, and paying registration fees.
Once registered, an MFDA dealer can engage in various activities related to the sale and distribution of mutual funds. They can provide investment advice, open and manage client accounts, execute trades on behalf of investors, and offer other related services. These dealers may operate as independent financial advisory firms or be affiliated with larger financial institutions.
The MFDA oversees its members' activities by conducting regular audits, inspections, and compliance reviews to ensure adherence to industry standards. It also provides ongoing training and education to its members to enhance their knowledge and professionalism.
The primary goal of an MFDA dealer is to serve the best interests of their clients by providing suitable investment recommendations and maintaining high standards of ethical conduct. They are responsible for assessing investors' risk tolerance, financial goals, and investment preferences to recommend appropriate mutual fund products.
It's important to note that MFDA dealers specifically deal with mutual funds and do not have the authority to trade or offer other types of securities such as stocks or bonds. Other SROs in Canada, such as the Investment Industry Regulatory Organization of Canada (IIROC*), oversee the activities of dealers involved in trading these securities.
In summary, an MFDA dealer in Canada is a registered financial institution or individual authorized by the MFDA to sell mutual funds to investors. They must comply with regulatory requirements, maintain high standards of conduct, and act in the best interests of their clients.
* In 2023, the MFDA and IIROC merged to form a new, unified SRO. Once officially announced, this page will be updated to reflect the new name.
Here's an explanation of the dealership structure in Canada:
An MFDA* (Mutual Fund Dealers Association of Canada) dealer refers to a financial institution that is registered with the MFDA and authorized to sell mutual funds to investors in Canada. The MFDA is a self-regulatory organization (SRO) that oversees the distribution and sale of mutual funds within Canada.
The MFDA was established by the Canadian government to regulate the activities of mutual fund dealers and protect the interests of investors. It sets and enforces rules and regulations that govern the conduct and operations of its members, ensuring compliance with industry standards and investor protection requirements.
To become an MFDA dealer, a firm must meet specific qualifications and adhere to strict regulatory guidelines. They must undergo a registration process with the MFDA, which involves fulfilling proficiency requirements, submitting documentation, and paying registration fees.
Once registered, an MFDA dealer can engage in various activities related to the sale and distribution of mutual funds. They can provide investment advice, open and manage client accounts, execute trades on behalf of investors, and offer other related services. These dealers may operate as independent financial advisory firms or be affiliated with larger financial institutions.
The MFDA oversees its members' activities by conducting regular audits, inspections, and compliance reviews to ensure adherence to industry standards. It also provides ongoing training and education to its members to enhance their knowledge and professionalism.
The primary goal of an MFDA dealer is to serve the best interests of their clients by providing suitable investment recommendations and maintaining high standards of ethical conduct. They are responsible for assessing investors' risk tolerance, financial goals, and investment preferences to recommend appropriate mutual fund products.
It's important to note that MFDA dealers specifically deal with mutual funds and do not have the authority to trade or offer other types of securities such as stocks or bonds. Other SROs in Canada, such as the Investment Industry Regulatory Organization of Canada (IIROC*), oversee the activities of dealers involved in trading these securities.
In summary, an MFDA dealer in Canada is a registered financial institution or individual authorized by the MFDA to sell mutual funds to investors. They must comply with regulatory requirements, maintain high standards of conduct, and act in the best interests of their clients.
* In 2023, the MFDA and IIROC merged to form a new, unified SRO. Once officially announced, this page will be updated to reflect the new name.
