It's hard to imagine a less compelling case for regulatory relief than the Mutual Fund Dealers Association's current proposal to allow dealers, for the first time, to make discretionary trades for their clients. The self-regulatory organization's proposed rule changes, which would apply only to dealer-administered fund-of-funds programs, were released in April for a 120-day comment period that ended on Aug. 2. The MFDA hasn't specified a target date for implementing rule changes.
There’s certainly no urgency, given that fund dealers already have access to an abundance of fund-of-funds portfolio programs and asset allocation services offered by the companies whose funds they distribute. The fund companies' multi-asset offerings are professionally managed by qualified personnel who meet all regulatory requirements. They're offered by prospectus to retail investors. Their performance rankings and ratings are readily available.
