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Bulletin #0033-M

Membership Information
Amendments to Subordinated Loans

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:

BULLETIN #0033 – M
September 24, 2003
Phone: 416-943-5827
E-mail : [email protected]

MFDA Bulletin

Membership Information

For Distribution to Relevant Parties within your Firm

Amendments to Subordinated Loans
If subordinated debt forms part of a Member’s total financial statement capital, the Member is
required to submit to the MFDA the standard MFDA Subordinated Loan Agreement (Schedule I
to the MFDA Application Guide). Any changes to the subordinated loan must be approved by
the MFDA in writing. The prior written consent of the MFDA is required before part or all of the
subordinated debt is repaid. Consent will only be granted if the Member’s financial condition
would be sufficient subsequent to the repayment of part or all of the subordinated debt.

In the event that the amount of indebtedness under the subordinated loan is increased, the
Member must provide the MFDA with a new Subordinated Loan Agreement in triplicate that
reflects the revised amount. This new Agreement will replace the existing Subordinated Loan
Agreement on file with the MFDA, which will be returned to the Member. The amount of
subordinated debt reflected in the new Agreement must match the amount shown on the
Member’s financial statement (MFDA Financial Questionnaire and Report, Statements A and F).

Laurie Gillett
Corporate Secretary

(doc #19493)