Smartenu Up Institute

Mutual Fund Regulation and Governance

The Mutual Fund industry and its regulatory environment is the focus of this two (2) day course. Recent reviews and pending changes from both legislative and regulatory organizations on the practices and structure of this industry are discussed. 

Topics will include MFDA review and involvement, IFIC (Trade Association), the fiduciary responsibility of the fund manager and advisor, the role of the compliance officer, the board structure, the directors, the supervisory responsibilities and the disclosure requirements.

All course materials are provided. Upon confirmation of registration, the student will receive a free one-year subscription to Investment Executive, Canada's Newspaper for Financial Advisors.

No sessions currently available. Contact client services to get the next available city and date.


This course should be of particular interest to:
  • Persons presently outside the industry looking to increase specific financial knowledge or seek entry to the industry
  • All participants in all sectors of the industry, including fund managers, portfolio managers, investment dealers, mutual fund dealers and service providers.
No advance preparation required, however follow-up courses recommended are:
  • Inside Canada's Securities Industry
  • Global Securities: Trading & Settlements
  • Compliance for the Securities Industry Level I
  • Compliance for the Securities Industry Level II
  • Science of ETFs (Exchange Traded Funds)

The benefit to the student is:
  • Gain a better understanding and have practical knowledge of mutual funds and its regulatory structure
  • Provide an integrated overview of the regulation and governance of mutual funds, with special emphasis on the management of conflicts of interest and the role of compliance 
  • Gain knowledge of the Act and Rules governing Mutual Funds
  • Acquire practical knowledge of the trading, the custody of funds, proxy voting and corporate governance

Day 1 Day 2
The Organisation of a Mutual Fund
  • Portrait of the Mutual Fund Industry
  • Structure of the Industry
  • Structure of a mutual fund organisation, each role and the importance of each party
  • Critical role of the Fund Manager
  • Emphasis on auditor and IRC required to be independent  of the manager and it's implications
The Regulatory Structure
  • Securitie's commissions - roles and functions
  • Administration of the provincial Securities Acts 
  • Canadian Securities Adminstrators (CSA) - principle achievements
  • Self Regulatory Organisations (SRO's) - roles and functions and limits on authority
  • Applicable laws and regulations
  • Securities Acts and National Instruments
  • Money laundering and terrorist financing
  • Privacy Protection
Regulatory Requirements 
  • Mutual Funds as Reporting Issuers
  • Simplified prospectus and annual information form
  • Continuous disclosure, financial statements, management report of fund performance, insider reports, material change reports, etc.
  • Management of a mutual funds portfolio
  • Distribution of a mutual fund
  • Registration (NI 31-103)
 Conflicts of Interest
  • Regulatory requirements 
  • How to manage conflicts of interest
  • Types of conflicts of interest
Governance of a Mutual Fund 
  • Why fund governance matters
  • Governance structure and dependency on how the fund is established
  • the Independent Review Committee, its role and power to approve and power to recommend
The Role of Compliance 
  • The capstone of the course and why
  • What is compliance?
  • Risk Management
  • What do the regulators require?
  • Structure of the compliance function - UDP, CCO, everyone in the firm
  • Components of a compliance system
  • Common compliance deficiencies
  • The rising bar of compliance
  • Best practices
Day 2 Afternoon  
  • Exam

Course Code: OPC05