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Bulletin #0599-C

For further information, please contact:

Caroline Ou
Manager, Financial Compliance
Compliance
For Distribution to Relevant Parties within your Firm

The Form 1 Reference Manual

The Form 1 is a set of regulatory financial statements and schedules prepared in a prescribed format containing a Member’s financial information.  The Form 1 is an integral tool which enables the MFDA to monitor the financial status of its Members and ensure that its Members’ financial processes and internal controls are in adherence with MFDA By-laws, Rules, Policies.  Members are required to submit monthly unaudited and annual audited Form 1 filings to the MFDA.

The reference manual is intended to assist Members and their auditors in the interpretation and application of, and compliance with, requirements under MFDA By-laws, Rules and Policies.  Each statement and schedule of the Form 1 is discussed in the reference manual.  Further, certain line items are described in expanded detail to provide clarification or guidance on frequently asked questions the MFDA has received from Members.  For example, the Supplementary Disclosure on Schedule 2 explains how all cash held for clients in registered plans must be insured by either the Canada Deposit Insurance Corporation or the Autorité des marchés financiers.  In order to ensure compliance with this requirement, certain disclosures must be provided to the financial institution where the cash is held in order to ensure that maximum deposit protection coverage is provided to each of the underlying clients with respect to their individual cash balances.

Examples or best practices contained in the reference manual are for illustration purposes and are not exhaustive or intended to imply particular rules or requirements.  The reference manual will be updated periodically when appropriate.  Members and their auditors are advised to consult current versions of MFDA By-laws, Rules, Policies and Forms available on the MFDA website as final reference materials.

The full reference manual can be found on the Members Only Site or the Forms page of the MFDA website.

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