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Bulletin #0609-P

Policy
Proposed Amendments to MFDA Rules 2.8.3 (Rates of Return), 5.3 (Client Reporting) and 5.4 (Trade Confirmations)

Contact: Paige Ward
BULLETIN #0609 – P
General Counsel, Corporate Secretary & Vice-President, Policy
June 13, 2014
Phone: 416-943-5838
E-mail: pward@mfda.ca

MFDA Bulletin

Policy

For Distribution to Relevant Parties within your Firm

Proposed Amendments to MFDA Rules 2.8.3 (Rates of Return), 5.3 (Client
Reporting) and 5.4 (Trade Confirmations)

On June 12, 2014, the British Columbia Securities Commission (“BCSC”) published for public comment
proposed amendments to MFDA Rules 2.8.3 (Rates of Return), 5.3 (Client Reporting) and 5.4 (Trade
Confirmations).

The Canadian Securities Administrators (“CSA”) published Client Relationship Model Phase 2
(“CRM2”) amendments to National Instrument 31-103 Registration Requirements, Exemptions and
Ongoing Registrant Obligations
(“NI 31-103”) and the Companion Policy to the Instrument on
March 28, 2013. The CRM2 amendments introduce requirements under NI 31-103 in the areas of
client statements, charges and compensation disclosure and performance reporting. These
amendments came into force on July 15, 2013. Client statement requirements under NI 31-103 will
come into effect on July 15, 2015. Requirements in respect of charges and compensation disclosure
and performance reporting will come into effect on July 15, 2016.

Conforming changes are required to MFDA Rules 2.8.3, 5.3 and 5.4 to adopt client statement,
charges and compensation disclosure and performance reporting requirements established under the
CRM2 amendments to NI 31-103.

Comments

Comments should be made in writing. One copy of each comment letter should be delivered by
September 10, 2014 (within 90 days of the BCSC’s publication of the proposed amendments),
addressed to the attention of: Paige Ward, General Counsel, Corporate Secretary and Vice-President,
Policy, Mutual Fund Dealers Association of Canada, 121 King St. West, Suite 1000, Toronto,
Ontario, M5H 3T9 and one copy addressed to the attention of:
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Kate Holzschuh, Senior Legal Counsel, Capital Markets Regulation Division, British
Columbia Securities Commission, 701 West Georgia Street, P.O. Box 10142, Pacific Centre,
Vancouver, British Columbia, V7Y 1L2.

Those submitting comment letters should be aware that a copy of their comment letter will be made
publicly available on the MFDA website at www.mfda.ca.

To view the proposed amendments, please go to: https://mfda.ca/regulation/propamend.html.

The proposed amendments may also be viewed on the BCSC’s website at:

http://www.bcsc.bc.ca/uploadedFiles/Marketplaces/SRO/MFDA/Proposed%20Amendments%20
to%20MFDA%20Rules%202.8.3%20(Rates%20of%20Return),%205.3%20(Client%20Reportin
g)%20and%205.4%20(Trade%20Confirmation),%20June%2012,%202014.pdf?t=140267194838
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DOCs# 382716
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