BULLETIN #0850-P

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Paige Ward

General Counsel, Corporate Secretary and Vice President, Policy

(416) 943-5838

pward@mfda.ca

BULLETIN #0850-P

January 21, 2021

Approval of Proposed Amendments to MFDA Rule 1.1.1(a) (Business Structures – Members)

The securities regulatory authorities in Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan have approved/not objected to proposed amendments to MFDA Rule 1.1.1(a) (Business Structures – Members). The proposed amendments have received all the requisite approvals and are now in effect.

The amendments are intended to permit Approved Persons to engage in securities related business as an employee of a credit union or caisse populaire, as permitted by applicable securities legislation, for the account of, and through, the facilities of the credit union, rather than the Member. Attached as Appendix “A” to this Bulletin is a blackline copy of the amendments.

To view the Notice of Approval/Non-Objection, please go to: www.bcsc.bc.ca.


Appendix “A”

1.1 BUSINESS STRUCTURES

1.1.1 Members

No Member or Approved Person (as defined in By-law 1.1) in respect of a Member shall, directly or indirectly, engage in any securities related business (as defined in By-law 1.1) except in accordance with the following:

  1. all such securities related business is carried on for the account of the Member, through the facilities of the Member (except as expressly provided in the Rules) and in accordance with the By-laws and Rules, other than:
    1. such business as relates solely to trading in deposit instruments conducted by any Approved Person not on account of the Member; and
    2. such business conducted by an Approved Person as an employee of a bank and in accordance with the Bank Act (Canada) and the regulations thereunder, or as an employee of a credit union or caisse populaire and in accordance with applicable legislation governing such credit union or caisse populaire, and in each case, in accordance with and applicable securities legislation.

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