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Bulletin #0158-P

Policy
MFDA Investor Protection Corporation Working Group - Nominations for Membership

Mutual Fund Dealers Association of Canada
Association canadienne des courtiers de fonds mutuels
121 King Street West, Suite 1000, Toronto, Ontario, M5H 3T9
TEL: 416-361-6332 FAX: 416-943-1218 WEBSITE: www.mfda.ca

Contact: Paige
L.
Ward
BULLETIN #0158-P
Director of Policy and Regulatory Affairs
July 25, 2005
Phone: (416) 943-5838
E-mail: pward@mfda.ca


MFDA Bulletin

Policy

For Distribution to Relevant Parties within your Firm

MFDA Investor Protection Corporation Working Group – Nominations for
Membership

In accordance with the terms and conditions of the approval orders of the MFDA Investor Protection
Corporation (“IPC”), the IPC and MFDA will be establishing a working group consisting of
representatives of the MFDA IPC, the MFDA and MFDA Members to review various aspects of the
IPC including the following:
(i)
identification of the risks of mutual fund dealer failures leading to potential investor
losses;
(ii)
consideration of the size of fund that is appropriate having regard to:
• identified risks;
• amounts of customer property held in client name;
• amounts of customer property held in nominee name;
• average size of customer accounts;
• average cash flow of customer monies through the dealer; and
• other non-mutual fund products being covered under the fund;
(iii)
the type of products that should be covered;
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(iv)
the appropriate coverage amount per customer account;
(v) assessment
methodology,
including whether it should be risk-based;
(vi)
the appropriate long term methods of funding the MFDA IPC; and
(vii)
the types of risk management tools required by the MFDA IPC.

The MFDA and IPC are currently seeking suggestions for membership on the MFDA IPC
working group from representatives of MFDA Members. Members of the working group will be
officers and senior employees of MFDA Members and will be selected with a view to ensuring
that the working group is reasonably representative of the diversity of MFDA Membership.

Qualified individuals interested in serving on the working group should forward an up-to-date
resume together with a brief covering letter by August 15, 2005 to the attention of:

Bernadette Devine
Assistant Corporate Secretary

By Mail:
Mutual Fund Dealers Association of Canada
121 King Street West
Standard Life Tower
Suite 1000
Toronto, Ontario
M5H 3T9

Or Electronically at: bdevine@mfda.ca

Or By facsimile: (416) 361-9781

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