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Bulletin #0592-C

For further information, please contact:

Ken Woodard
Director, Communications & Membership Services
Compliance
For Distribution to Relevant Parties within your Firm

MFDA Financial Compliance Examination Cycle

The MFDA will be amending its Financial Compliance examination process to further integrate a risk-based methodology. Beginning in January 2014, the MFDA intends to perform routine financial compliance examinations of its Level 4 Members on a 1 or 2-year cycle and its Level 2&3 Members on a 2 or 4-year cycle. The frequency of these routine examinations will be based on an assessment of risk factors specifically relating to financial matters of the firm. These factors are reviewed on an ongoing basis and it is possible for a Member’s examination cycle to change.

Where a Level 2/3 Member’s financial compliance examination cycle is consistent with its sales compliance examination cycle, a combined examination will be performed. However, in cases where the financial and sales compliance examination cycles differ, separate examinations will be conducted.

The MFDA regularly assesses its examination cycles and examination process and may make changes in the future where appropriate.

In addition to the routine examinations, the MFDA will continue its practice of performing targeted examinations focusing on specific matters and reviewing monthly and annual financial filings in the normal course.

Members should consult the Members Only section of the MFDA website for their financial examination cycle or contact the Manager assigned to their firm.

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