Policy
Notice of Exemption Granted Pursuant to Section 37 of By-law No. 1
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 #0209-P
Director of Policy and Regulatory Affairs
July 24, 2006
Phone: 416-943-5838
E-mail: pward@mfda.ca
MFDA Bulletin
Policy
For Distribution to Relevant Parties within your Firm
Notice of Exemption Granted Pursuant to Section 37 of By-law No.1
The Regulatory Issues Committee of the MFDA Board of Directors has granted an exemption
from the requirements of MFDA Rule 1.2.4 (Currency of Courses) to an employee of Fidelity
Retirement Services of Canada Limited seeking designation as a compliance officer. The
Decision Document of the Regulatory Issues Committee of the MFDA Board of Directors is
attached to this Bulletin.
DOCS #87287
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MUTUAL FUND DEALERS ASSOCIATION OF CANADA
DECISION DOCUMENT
In the Matter of the Application of Fidelity Retirement Services of Canada Limited
and Ms. Gina Cho (collectively “the Applicants”) for Exemptive Relief from the
requirements of MFDA Rule 1.2.4
Background
(a) The MFDA has received an application for exemptive relief from the Applicants
from the course currency requirements under MFDA Rule 1.2.4 as these
requirements would apply in respect of the proposed designation of a compliance
officer (Ms. Gina Cho).
(b) MFDA Rule 1.2.3(b) specifies the courses and examinations that individuals
designated as trading officers must successfully complete. Rule 1.2.4 provides an
exemption to these course and examination requirements if the individual was
registered/licensed under applicable securities legislation in the same category
within three years of the relevant time for qualification, or if the individual has
successfully completed the course or examination within three years of the
relevant time for qualification.
(c) The intention of MFDA Rule 1.2.4 is to ensure that an individual’s industry
knowledge remains relevant and current.
(d) Pursuant to section 37 of MFDA By-law No.1, the MFDA Board of Directors
may exempt any Member, Approved Person, or any other person subject to the
jurisdiction of the Corporation, or any group or class of the foregoing persons,
from the requirements of the provisions of the By-laws, Rules and Forms where it
is satisfied that to do so would not be prejudicial to the interests of the Members,
their clients or the public, and in granting such an exemption the Board of
Directors may impose such terms and conditions as are considered necessary and
desirable. The MFDA Board of Directors has delegated the consideration and
disposition of exemptive relief applications to the Regulatory Issues Committee of
the Board pursuant to section 3.6.4 of MFDA By-law No.1.
Representations
This decision is based on the following facts represented by the Applicants:
(e) Ms. Cho successfully completed the Canadian Securities Course in 1997 and the
Partners’, Directors’ and Senior Officers’ Qualifying Examination in May 2002.
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(f) Although Ms. Cho does not satisfy the currency of courses requirement in MFDA
Rule 1.2.4(b), she has been active in the industry since completing the course
requirements and has been working in a compliance role under the supervision of
a designated compliance officer and has frequently attended educational events.
(g) Ms. Cho has been granted registration as a trading officer by the Ontario
Securities Commission (“OSC”) and has been exempted from the course currency
requirements under the Securities Act (Ontario) and regulations and rules under
the Act.
Decision
The Regulatory Issues Committee of the MFDA Board of Directors concluded that
providing Ms. Cho with an exemption from the requirements of Rule 1.2.4 would not be
prejudicial to the interests of the Members, their clients or the public.
The MFDA Regulatory Issues Committee of the MFDA Board of Directors hereby grants
exemptive relief to the Applicants from the requirements of Rule 1.2.4 provided that:
(a)
this exemption shall apply in Ontario only so long as Ms. Cho remains
registered with the Ontario Securities Commission as a trading officer and
functions as such while her registration is based solely on the relief
granted to her by the OSC, and
(b)
this exemption shall only apply in a Canadian jurisdiction, other than
Ontario, if Ms. Cho satisfies the statutory requirements of that jurisdiction.
* * *
SIGNED on behalf of the Committee by its Chair on the 10th day of July, 2006.
“Robert B. MacLellan”
Robert B. MacLellan
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