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Bulletin #0007-C

Compliance
Transition Period for Minimum Capital

Mutual Fund Dealers Association of Canada
Association canadienne des courtiers de fonds mutuels
121 King Street West, Suite 1600, Toronto, Ontario, M5H 3T9
TEL: 416-361-6332 FAX: 416-943-1218 WEBSITE: www.mfda.ca


Contact:
Laurie
Gillett
BULLETIN #0007–C
Membership Services Manager

February 18, 2003
Phone: 416-943-5827
E-mail: lgillett@mfda.ca


MFDA Bulletin

Compliance

For Distribution to Relevant Parties within your Firm

_______________________________________________________
Transition Period for Minimum Capital
MFDA Rule 3.1.1 requires Members to maintain minimum capital in the following amounts:

Level 1 Dealer – $25,000
Level 2 Dealer – $50,000
Level 3 Dealer – $75,000
Level 4 Dealer – $200,000

The MFDA Board of Directors approved a three year transition period (commencing March 1,
2001 and ending March 1, 2004) to allow Level 2, 3 and 4 dealers to meet the minimum capital
requirements set out in MFDA Rule 3.1.1. As of March 1, 2003, Level 2, 3 and 4 dealers will be
expected to maintain the following minimum capital amounts:

Level 2 Dealer – $45, 000
Level 3 Dealer – $55, 000
Level 4 Dealer – $145, 000

As of March 1, 2004, Level 2, 3 and 4 dealers will be expected to meet the capital requirements
of $50,000, $75,000 and $200,000 respectively in accordance with Rule 3.1.1.

For further information regarding transition periods for minimum capital, Members are advised
to refer to MFDA Member Regulation Notice MR-0005, issued March 16, 2001, entitled
“MFDA Financial Questionnaire and Report – Related Transition Periods”.

Laurie Gillett
Corporate Secretary

(doc. #11648)