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Bulletin #0433-P

Policy
Revisions to MR-0074 Leverage Risk Disclosure and Leverage Supervision Guide

Contact: Paige
Ward
BULLETIN #0433 – P
Director, Policy & Regulatory Affairs
May 19, 2010
Phone: 416-943-5838
E-mail: pward@mfda.ca

MFDA Bulletin

Policy

For Distribution to Relevant Parties within your Firm

Revisions to MR-0074 Leverage Risk Disclosure and Leverage Supervision
Guide

On April 6 and 7, 2010 MFDA staff issued Member Regulation Notice MR-0074 Leverage Risk
Disclosure
(“MR-0074”) and the MFDA Leverage Supervision Guide. This Bulletin sets out
revisions made to both documents. The revised versions are being republished along with this
Bulletin.

MR-0074

MR-0074 permits short or long form leverage disclosure to be provided to clients when an
Approved Person makes a recommendation for purchasing securities by borrowing or otherwise
becomes aware of a client borrowing monies for the purpose of investment in a registered
account. The Notice has been clarified and now refers to investment in a Registered Retirement
Savings Plan (“RRSP”) or Registered Education Savings Plan (“RESP”).

Leverage Supervision Guide

Part I (Introduction) now clarifies that the guidance and recommended best practices set out in
the Guide would generally not be applicable to loans for investment in Registered Retirement
Savings Plans (“RRSPs”) or Registered Education Savings Plans (“RESPs”).

DM#212867