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Bulletin #0561-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

Policy Instrument Review Project

Background

On July 5, 2012, MFDA staff issued Bulletin #0535-P Policy Instrument Review Project to advise Members that staff is undertaking a review of MFDA Policy Instruments in order to:

  • Clarify the regulatory intent of MFDA Member Regulation Notices to ensure that the distinction between requirements and suggestions or guidance is clear;
  • Update references/content in MFDA Member Regulation Notices to reflect regulatory developments and ensure consistency with requirements under current MFDA Rules and securities legislation; and
  • Eliminate Member Regulation Notices that are no longer relevant as they address issues that were transitory in nature.

Staff has completed the first phase of the review and this Bulletin sets out the revisions that have been made to MFDA Notices.

First Phase of the Review

The amendments made to Notices during the first phase of the review are housekeeping in nature and include the following:

  • MFDA Member Regulation Notices have been renamed “MFDA Staff Notices”; and
  • A description header has been included on each Notice to clarify that the Notices are issued by staff and represent staff’s interpretations.

In addition, the following Notices have been revised to clarify regulatory intent, update references to MFDA Rules, By-laws and Policies, and ensure consistency of style and format:

  • MSN-0003 – Introducing/Carrying Dealer Arrangements
  • MSN-0009 – Dual Occupations – Selling Deposit Instruments and Providing Non-Securities-Related Financial Planning Services
  • MSN-0011 – Agency Agreements
  • MSN-0013 – Undertaking Regarding Retractable Preferred Shares
  • MSN-0017 – Transfer of Client Accounts
  • MSN-0019 – Member Resignations and Reorganizations
  • MSN-0021 – Late Filing Fees
  • MSN-0031 – Powers of Attorney – Rule 2.3.1 – Exception for Family Members of Approved Persons
  • MSN-0032 – MFDA Rule 1.1.7 – Use of Business, Style or Trade Names by Members and Approved Persons
  • MSN-0033 – Websites of Approved Persons of MFDA Members
  • MSN-0035 – Recording and Maintaining Evidence of Client Trade Instructions
  • MSN-0036 – MFDA Access to Information – Service Arrangements and Introducing/Carrying Arrangements
  • MSN-0038 – Revised Limited Trading Authorization Form and Guidelines for Individual and Joint Accounts
  • MSN-0039 – Implementation Date for Revised Limited Trading Authorization Form for New Accounts (Individual and Joint)
  • MSN-0041 – Automatic Conversion of Deferred Sales Charge to 0% Front End Load Units Without Client Knowledge or Consent
  • MSN-0043 – Referral Arrangements in Respect of Specific Securities
  • MSN-0048 – Know-Your-Product
  • MSN-0051 – Capital Provisions for Unresolved Differences in Nominee Name Assets
  • MSN-0052 – MFDA Financial Questionnaire and Report – Basis of Presentation Note Disclosure
  • MSN-0053 – Obligation of Members to Communicate Regulatory Information to Approved Persons and Relevant Employees
  • MSN-0054 – Conflicts of Interest – MFDA Rule 2.1.4
  • MSN-0058 – Acceptable Securities Locations
  • MSN-0062 – Exempt Securities of Non-Arm’s Length Issuers
  • MSN-0064 – Maintaining Evidence of Disclosure
  • MSN-0065 – Excessive Trading
  • MSN-0066 – Pre-Signed Forms
  • MSN-0071 – Referral Arrangements with Other Securities Registrants
  • MSN-0077 – Approved Person Proficiency Requirements

The following Notices have been withdrawn since the content is no longer relevant or addresses issues that were transitory in nature:

  • MSN-0001 – Transition Periods
  • MSN-0004 – Member Fee Guidelines
  • MSN-0005 – Financial Questionnaire and Report – Related Transition Periods
  • MSN-0015 – Electronic Delivery of Documents
  • MSN-0018 – Extension of Certain Transition Periods
  • MSN-0022 – Out of Province Registration
  • MSN-0026 – Transition Periods
  • MSN-0027 – Notification of Termination of Approved Persons
  • MSN-0028 – Out of Province Registration (Expiration of Transition Period)
  • MSN-0030 – Referral Arrangements
  • MSN-0046 – Out of Province Registration – Multilateral Instrument 11-101 – Principal Regulator System
  • MSN-0050 – Related Member Guarantees
  • MSN-0063 – Extension to Effective Date of Acceptable Securities Locations Requirement

In addition, a chart has been created and made available on the MFDA website, detailing the status of MFDA Notices and specifying Notices that have been withdrawn or replaced.

Next Steps

There are other Notices requiring more substantive revisions to content, which may not be considered housekeeping in nature.  There are also several Notices that will require revisions as a result of regulatory initiatives currently underway.  These Notices include MSN-0075 Relationship Disclosure, MSN-0076 Performance Reporting and MSN-0078 MFDA Rules 2.4.4 (Transaction Fees or Charges) and 5.1(b)(iv) (Requirement for Records).

Revisions to these Notices will be brought forward for review by the MFDA Policy Advisory Committee as they are completed.