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
BULLETIN #0211 – P
Director of Policy and Regulatory Affairs
July 28, 2006
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 trading officer. The Decision
Document of the MFDA Regulatory Issues Committee is attached to this Bulletin.
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MUTUAL FUND DEALERS ASSOCIATION OF CANADA
In the Matter of the Application of Fidelity Retirement Services of Canada Limited
and Mr. Allan Gordon Nicholls (collectively “the Applicants”) for Exemptive Relief
from the requirements of MFDA Rule 1.2.4
(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 trading
officer (Mr. Allan Gordon Nicholls).
(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.
This decision is based on the following facts represented by the Applicants:
(e) Mr. Nicholls has satisfied the course requirements of MFDA Rule 1.2.3(b), but
these requirements were fulfilled more than three years ago, and Mr. Nicholls has
not been registered in the category of trading officer within the last three years.
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(f) Mr. Nicholls’ industry experience over the past ten years is relevant to the
knowledge expected of a trading officer and fulfils the objective of the currency
requirement in MFDA Rule 1.2.4.
(g) Mr. Nicholls 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 Regulatory Issues Committee of the MFDA Board of Directors concluded that
providing Mr. Nicholls 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 Mr. Nicholls remains
registered with the Ontario Securities Commission as a trading officer and
functions as such while his registration is based solely on the March 28, 2006,
letter to Mr. Nicholls from the Ontario Securities Commission signed by David
M. Gilkes, Manager, Registrant Regulation, Capital Markets Branch, and
(b) this exemption shall only apply in a Canadian jurisdiction, other than Ontario, if
Mr. Nicholls 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
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