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Bulletin #0610-P

Policy
Approval of Amendments to MFDA By-law No.1 to Transition to the Canada Not-for-profit Corporations Act


Contact: Paige Ward
BULLETIN #0610 – P
General Counsel, Corporate Secretary and Vice President, Policy
July 4, 2014
Phone: (416) 943-5838
E-mail: pward@mfda.ca

MFDA Bulletin

Policy

For Distribution to Relevant Parties within your Firm


Approval of Amendments to MFDA By-law No.1 to Transition to the
Canada Not-for-profit Corporations Act

Background

On June 19, 1998, the MFDA was incorporated under Part II of the Canada Corporations Act (the
“CCA”). MFDA By-law No. 1, adopted pursuant to the CCA, sets out the constitution for the MFDA
and the general operating structure for the MFDA and its Members, including: powers and duties of
the Board of Directors; Membership eligibility and approval process; annual fees payable by
Members; disciplinary procedures; Regional Councils; and examinations and investigations.

On October 17, 2011, the Canada Not-for-profit Corporations Act (the “NFP Act”), together with its
regulation, came into force, replacing Part II of the CCA. The NFP Act will not automatically apply
to existing corporations. Instead, federally incorporated not-for-profit corporations, such as the
MFDA, will need to take action to make the transition to the NFP Act. The current MFDA By-law
No.1 does not conform in all respects to the requirements of the NFP Act.

Amendments are required to bring MFDA By-law No. 1 into conformity with the NFP Act and are a
necessary step that the MFDA must take to ensure its continuance under the NFP Act. On July 25,
2013, the proposed amendments to MFDA By-law No. 1 were published for a 90 day public
comment period that expired on October 23, 2013.

The securities regulatory authorities in Alberta, British Columbia, Manitoba, New Brunswick, Nova
Scotia, Ontario, Prince Edward Island and Saskatchewan (the “Recognizing Regulators”) have now
approved/not objected to these public interest amendments. The amendments to MFDA By-law
No.1 will come into effect on a date to be subsequently determined by the MFDA.

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