Senior Legal & Policy Counsel
March 25, 2011
E-mail: [email protected]
For Distribution to Relevant Parties within your Firm
Rule 2.4.1 (Payment of Commissions to Unregistered Corporation) –
Requirement to Execute Revised Agreement
On March 29, 2010 MFDA staff published Member Regulation Notice MR-0072 – Payment of
Commissions to Unregistered Corporation, which included, as Schedule “A” to the Notice, a
revised form of Agreement, amended in accordance with the terms of Rule 2.4.1, as revised.
Members were advised that the revised form of Agreement amends and replaces the Agreement
previously issued with Member Regulation Notice MR-0002 – Payment of Commissions to Non-
Registered Entities (in 2001) and must be duly executed for the purpose of complying with the
requirements of subsection 2.4.1(b)(iii). However, it has come to the attention of MFDA staff
that Members have not been requiring their Approved Persons to execute the revised Agreement.
Members who are presently directing payments to unregistered corporations in respect of
business conducted by Approved Persons on their behalf are reminded that they have until
March 26, 2011 to have the revised Agreement provided as Schedule “A” to MR-0072 executed
by all required parties and in place. Members who started directing such payments to
unregistered corporations on or after March 31, 2010 must have the revised Agreement executed
by all required parties and in place prior to any such payments being made.