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Bulletin #0228-M

Membership Information
Referral Arrangements with Lakeshore Asset Management Inc. and Meridian Global Investors Inc.

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: Ken
Woodard
BULLETIN #0228-M
Director, Communications & Membership Services
October 25, 2006
Phone: (416) 943-4602
E-mail: kwoodard@mfda.ca


MFDA Bulletin

Membership Information

For Distribution to Relevant Parties within your Firm

Referral Arrangements with Lakeshore Asset Management Inc. and
Meridian Global Investors Inc.

MFDA staff has identified significant concerns with respect to referral arrangements that some
Members have in place with Lake Shore Asset Management Inc. (“Lake Shore”) and Meridian
Global Investors Inc. (“MGI”). In particular, it is MFDA staff’s position that these arrangements
are referrals for specific securities sold by Lake Shore and MGI. Accordingly, MFDA staff
expects that Members cease to participate in these arrangements.

For further guidance on the issue of referrals for specific securities, Members may review
MFDA Member Regulation Notice MR-0043, which provides as follows:

“In many cases the specific securities in respect of the referrals are not securities that the
Member is appropriately registered or licensed to sell directly. The concern with such
arrangements is that in most cases they result in Members and their Approved Persons
giving advice and making recommendations with respect to the specific security without
having the required licensing or proficiency to do so.”

Doc # 94359
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