Question

What is the main responsibility of the MFDA?

1) To decide arbitration disputes brought against its members.
2) To regulate the distribution side of the mutual funds industry.
3) To act as a public policy advocate.
4) To ensure financial compliance of member companies.

Answer 1

The main responsibility of the MFDA is to regulate the distribution side of the mutual funds industry, ensuring fair and ethical conduct in the sale and distribution of mutual funds.

Step-by-step explanation:

The main responsibility of the MFDA, which presumably stands for the Mutual Fund Dealers Association, is to regulate the distribution side of the mutual funds industry. This includes ensuring that the distribution of mutual funds is conducted fairly and transparently, with adherence to standardized ethical and professional conduct. It is important to note that while the MFDA would be involved in regulatory and compliance activities, the direct responsibilities of deciding arbitration disputes, acting as a public policy advocate, or ensuring the financial compliance of companies might involve coordination with other regulatory bodies or entities such as the SEC (Securities and Exchange Commission) or FINRA (Financial Industry Regulatory Authority) in the case of the United States. The information provided references the FDA and the Fed, which have different responsibilities related to public health, medication, foods, consumer protection laws, and banking compliance respectively, and should not be confused with the MFDA's focus on mutual funds.