The MFDA Board of Directors and the recognizing securities commissions have approved a housekeeping amendment to the MFDA Rule 3.4.4. The amended Rule, as attached, is effective immediately.
The amendment to MFDA Rule 3.4.4 was made to provide MFDA staff with flexibility as to when a Member can be removed from early warning. Rule 3.4.4 currently provides that a Member shall remain in early warning until the last filed monthly financial reports of the Member demonstrate in the opinion of the MFDA that the Member is no longer required to be designated as being in early warning and the Member has otherwise complied with the requirements of MFDA Rule 3.4.
The amendment to Rule 3.4.4 will allow MFDA staff to exercise discretion in removing a Member from early warning upon resolution of the issue, rather than waiting a month to receive the firm’s monthly financial report.
MUTUAL FUND DEALERS ASSOCIATION OF CANADA
MFDA Rule 3.4.4 (Early Warning – Duration)
On June 18, 2004, the Board of Directors of the Mutual Fund Dealers Association of Canada made and enacted the following amendment to Rule 3.4.4:
3.4.4 Duration. A Member shall remain designated as being in early warning and subject to the provisions of this Rule 3.4 as are applicable, until the latest filed monthly financial reports of the Member demonstrate, in the opinion of the Corporation that the Member no longer is required to be designated as being in early warning and the Member has otherwise complied with this Rule 3.4.