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Bulletin #0403-P

Policy
National Instrument 31-103: Transitional Relief from Account Statement Delivery Requirements for Certain Exempt Market Dealers

Contact: Ken
Woodard
BULLETIN #0403 – P
Director, Communications and Membership Services
October 9, 2009
Phone: 416-943-4602
E-mail: kwoodard@mfda.ca

MFDA Bulletin

Policy

For Distribution to Relevant Parties within your Firm

National Instrument 31-103: Transitional Relief from Account Statement
Delivery Requirements for Certain Exempt Market Dealers

NI 31-103 requires all registered dealers to deliver account statements to clients at least once
every three months. MFDA Members who hold only a mutual fund dealers license have 24
months from September 28, 2009 to comply with this requirement. No transition period was
initially provided for Members in Ontario and Newfoundland who held a Limited Market Dealer
(“LMD”) license that automatically converted to an Exempt Market Dealer (“EMD”) license and
such Members were required to begin sending quarterly account statements as of September 28,
2009.

A blanket order dated September 28, 2009 has been issued at www.osc.gov.on.ca/en/25868.htm
that allows Members in Ontario and Newfoundland who hold an EMD license to have a two year
transition period to meet the new quarterly account statement delivery requirements under NI 31-
103.

Members are reminded that the two year transitional relief only applies to Members holding an
EMD license in Ontario or Newfoundland. In provinces other than Ontario and Newfoundland,
Members that were acting as a dealer in the exempt market prior to September 28, 2009 have 12
months from this date to apply for registration as an EMD and comply with relevant
requirements. No transition period is provided for new applicants for registration as an EMD (i.e.
those seeking to begin transacting as an EMD after September 28, 2009) and all regulatory
requirements must be met on application for registration.

DM#187145