Skip to Main Content

Bulletin #0025-M

Membership Information
Potential Canadian Postal Strike

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 #0025 – M
Membership
Services
Manager
July 17, 2003
Phone: 416-943-5827
E-mail : lgillett@mfda.ca


MFDA Bulletin

Membership Information

For Distribution to Relevant Parties within your Firm

_______________________________________________________
Potential Canadian Postal Strike

There is a possibility of a nationwide postal strike as early as midnight tonight. The MFDA has
received a number of inquiries regarding requirements for delivery of documents if there is a
postal strike.

There are no specific exemptions under applicable securities law to suspend prescribed delivery
requirements of documents during a postal strike. For example, Members and Approved Persons
are reminded that the following general legal requirements remain in force during a postal strike:

• Prospectuses are required to be sent to purchasers by the dealer by prepaid mail or
delivery. Purchasers acquiring mutual funds have a right of withdrawal for two days after
receiving the prospectus, entitling the purchasers to the full amount invested plus any fees
and charges paid.

• Trade confirmations are required to be sent by the dealer to the clients by prepaid mail or
delivery. Clients have the right the rescind a purchase of $50,000 or less for two days
after receipt of the confirmation, entitling clients to the redemption price as of the day of
rescission, plus any fees or charges.

• Redemption payments must be sent no later than three business days after the relevant
valuation date.

• Trade orders which are required to be submitted on a timely basis.

MFDA document delivery requirements would similarly remain unaffected by a postal strike.
This would include, for example, MFDA requirements respecting:

• Monthly, quarterly and annual filings by Members, as well as "early warning"
notifications.

• Account statements required to be provided to clients.

• Written trade confirmations required to be provided to clients.

• Requests for information required to be provided to MFDA Staff.

MFDA Staff urge Members to implement arrangements to ensure ongoing compliance with
applicable legal and regulatory requirements during a postal strike and suggest the following
steps be taken:

1.
Every effort should be made to provide clients with the opportunity to receive
confirmations and monthly statements. Some alternatives are fax, e-mail and commercial
delivery to branch offices for client pick-up.

2.
Fax copies of client documents which must be signed prior to trading are acceptable on
an interim basis. Members should have procedures in place to follow-up on any originals
that are not received within a reasonable time after postal service resumes.

(doc. #16956)