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Bulletin #0439-P

Policy
Proposed New MFDA Rule 2.4.4 (Transaction Fees or Charges) and Proposed Amendments to MFDA Rule 5.1 (Requirement for Records)

Contact: Paige
Ward
BULLETIN #0439 – P
Director, Policy & Regulatory Affairs
June 28, 2010
Phone: 416-943-5838
E-mail: pward@mfda.ca

MFDA Bulletin

Policy

For Distribution to Relevant Parties within your Firm


Proposed New MFDA Rule 2.4.4 (Transaction Fees or Charges) and
Proposed Amendments to MFDA Rule 5.1 (Requirement for Records)

On June 25, 2010, the British Columbia Securities Commission (“BCSC”) published for public
comment proposed new MFDA Rule 2.4.4 (Transaction Fees or Charges) and proposed
amendments to MFDA Rule 5.1 (Requirement for Records).

The proposed amendments are intended to assist investors in making decisions with respect to
transactions in their account by requiring Members to inform investors of transaction fees or
charges prior to the acceptance of their order. Conforming changes to existing recordkeeping
obligations are also proposed and are intended to ensure that Members maintain evidence that the
client was informed of all such fees and charges.

Comments should be made in writing. One copy of each comment letter should be delivered by
September 23, 2010 (within 90 days of the BCSC’s publication of the proposed amendments),
addressed to the attention of the Corporate Secretary, Mutual Fund Dealers Association of
Canada, 121 King St. West, Suite 1000, Toronto, Ontario, M5H 3T9 and one copy addressed to
the attention of Julianna Paik, Senior Legal Counsel, British Columbia Securities Commission,
701 West Georgia Street, P.O. Box 10142, Pacific Centre, Vancouver, British Columbia, V7Y
1L2.

Those submitting comment letters should be aware that a copy of their comment letter will be
made publicly available on the MFDA website at www.mfda.ca.

To view the proposed amendments, please go to:
https://mfda.ca/regulation/propAmend/Prop2-4-4_5-1.pdf

The proposed amendments may also be viewed on the BCSC’s website at:
http://www.bcsc.bc.ca/sros.asp?id=10268.

DM# 217046