Which of the following entities can be a member of the MFDA?

• A. A person distributing options
• B. A company solely dealing with futures
• C. A mutual fund dealer
• D. An exempt market dealer

Answer: (C)

The mutual fund dealer is the correct choice for membership in the MFDA, as this entity is specifically designed to regulate mutual funds in Canada. The MFDA (Mutual Fund Dealers Association) focuses on the protection of investors and the regulation of mutual fund dealers, ensuring that they adhere to established standards of conduct and practices.

On the other hand, a person distributing options and a company solely dealing with futures do not fall under the scope of the MFDA's regulation because they engage in different types of financial instruments and markets that are not covered by the mutual fund framework. Additionally, while an exempt market dealer is involved in the distribution of securities that are exempt from being prospectus-qualified, they too operate outside the purview of the MFDA, which solely focuses on mutual fund dealers.

This delineation is important to maintain clear regulatory boundaries and ensure that each type of financial dealer complies with the standards appropriate to their specific area of operation.