BULLETIN #0487-P

View and Download English PDF

Contact: Paige
Ward
BULLETIN #0487 – P
Director, Policy & Regulatory Affairs
July 11, 2011
Phone: 416-943-5838
E-mail: pward@mfda.ca

MFDA Bulletin

Policy

For Distribution to Relevant Parties within your Firm

Proposed Amendments to MFDA Rule 2.2.1 (“Know-Your-Client”) and
Policy No. 2 Minimum Standards for Account Supervision

On July 8, 2011, the British Columbia Securities Commission (“BCSC”) published for public
comment proposed amendments to MFDA Rule 2.2.1 (“Know-Your-Client”) and Policy No. 2
Minimum Standards for Account Supervision.

The proposed amendments are intended to clarify that the suitability obligations in Rule 2.2.1
with respect to investments apply equally to leverage strategies, and codify minimum standards
for Members and Approved Persons in assessing the suitability of client leveraging.

Comments should be made in writing. One copy of each comment letter should be delivered by
October 6, 2011 (within 90 days of the BCSC’s publication of the proposed amendments),
addressed to the attention of the Corporate Secretary, Mutual Fund Dealers Association of
Canada, 121 King St. West, Suite 1000, Toronto, Ontario, M5H 3T9 and one copy addressed to
the attention of Anne Hamilton, Senior Legal Counsel, British Columbia Securities Commission,
701 West Georgia Street, P.O. Box 10142, Pacific Centre, Vancouver, British Columbia, V7Y
1L2.

Those submitting comment letters should be aware that a copy of their comment letter will be
made publicly available on the MFDA website at www.mfda.ca.

To view the proposed amendments, please go to:
https://mfda.ca/regulation/propAmend/Prop2-2-1.pdf.

The proposed amendments may also be viewed on the BCSC’s website at:
http://www.bcsc.bc.ca/uploadedFiles/MFDA_RFC_2.2.1_policy2.pdf

DM#258455