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Bulletin #0492-P

For further information, please contact:

Paige Ward
General Counsel, Corporate Secretary and Vice President, Policy
Policy
For Distribution to Relevant Parties within your Firm

End of Transition Periods – September 28, 2011

On September 28, 2011, the following requirements become effective:

1. MFDA Rule 1.1.6(b)(viii) (Terms of Arrangement – Disclosure and Acknowledgement on Account Opening)

Rule 1.1.6 (b)(viii) has been amended to delete the requirement that, in the case of a Level 2 introducing dealer, the client’s acknowledgment of disclosure reflect that the introducing dealer has advised the client that the carrying dealer shall be responsible for and shall maintain in its name any trust accounts established in respect of cash received from clients and that all client cheques shall be payable to the carrying dealer. This requirement is now addressed under Rule 2.2.5(c) (Relationship Disclosure).

2. MFDA Rule 2.2.5 (Relationship Disclosure)

By September 28, 2011, Members must comply with the requirements under new Rule 2.2.5 with respect to new clients. With respect to existing clients, Members must comply with the requirements under Rule 2.2.5 by December 3, 2013.

3. Account Statement Delivery Requirements under National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations

For more information, please refer to Bulletin #0488-P Account Statement Delivery Requirements under NI 31-103.

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