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Mutual Fund Dealers
Association canadienne des
Financial Services
Commission des services
Association of Canada
courtiers de fonds mutuels
Commission of Ontario
financiers de l’Ontario

BULLETIN #0628 – P
January 21, 2015


For Distribution to Relevant Parties within your Firm

Transactions in Syndicated Mortgage Securities by Approved Persons
of MFDA Members

In November 2013, the MFDA issued Bulletin #0583-P Transactions by Approved Persons in
Syndicated Mortgage Securities
. This Bulletin reminded Members and Approved Persons that
Approved Persons who are also licensed as Mortgage Agents or Mortgage Brokers cannot sell
syndicated mortgage investments under their Mortgage Agent or Mortgage Broker license outside
the Member.

In situations where an Approved Person is dually licensed, the MFDA requires compliance with the
requirements of both regulators. In this case the regulators are the MFDA and the Financial Services
Commission of Ontario (FSCO). The MFDA and FSCO are sending this joint communication to
MFDA Members in Ontario to clarify our shared view.

In Ontario, dealing or trading in mortgages is regulated under the Mortgage Brokerages, Lenders
and Administrators Act, 2006
(MBLAA) which is administered by FSCO. Under the MBLAA, a
business that sells syndicated mortgage investments is considered to be dealing or trading in
mortgages and is required to be licensed as a Mortgage Brokerage.

MFDA Members that have Approved Persons who are also licensed as Mortgage Agents or
Mortgage Brokers in Ontario and who are selling investments in syndicated mortgages through the
Member are required under the MBLAA to be licensed as Mortgage Brokerages by FSCO. Where a
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Member does not wish to become licensed as a Mortgage Brokerage under the MBLAA, the
Member and its Approved Persons must cease offering syndicated mortgage investments.

For more information on becoming licensed as a Mortgage Brokerage under the MBLAA, please
visit FSCO’s website at www.fsco.gov.on.ca (see page 2,565). If you have further questions, please
contact Elliott Katz, Senior Policy Analyst, Licensing and Market Conduct Division at FSCO at
Elliott.Katz@fsco.gov.on.ca or 416-590-7578. For more information about MFDA Rules, please
contact Paige Ward, General Counsel, Corporate Secretary & Vice-President, Policy at the Mutual
Fund Dealers Association of Canada at pward@mfda.ca or 416- 943-5838.

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