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Bulletin #0646-P

For further information, please contact:

Paige Ward
General Counsel, Corporate Secretary and Vice President, Policy
Policy
Proposed Amendments to MFDA Rule 5.3.2 (Content of Account Statement)

Proposed Amendments to MFDA Rule 5.3.2 (Content of Account Statement)

On June 18, 2015, the British Columbia Securities Commission (“BCSC”) published for public comment proposed amendments to MFDA Rule 5.3.2 (Content of Account Statement).

Rule 5.3.2 prescribes requirements in respect of the account statement required to be sent by MFDA Members under Rule 5.3.1 (Delivery of Account Statement). Currently, under the Rule, there is no requirement for Members to provide account statement disclosure in respect of the fact that they are Members of, or regulated by, the MFDA.

The proposed amendments to Rule 5.3.2 would require Members to disclose to clients, on the account statement, that they are Members of, and regulated by, the MFDA. Under the amendments, as proposed, Members would be permitted to include the MFDA logo on the account statement in addition to, but not in place of, disclosure required under the Rule. The intent of the proposed amendments is to promote client awareness of the regulatory oversight exercised by the MFDA in respect of MFDA Members and their Approved Persons. The proposed amendments would also complement required account statement disclosure respecting MFDA Investor Protection Plan (“IPC”) coverage.

Comments

Comments should be made in writing. One copy of each comment letter should be delivered by September 16, 2015 (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: Vida Mehin, 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 %20to%20MFDA%20Rule%205.3.2%20(Content%20of%20Account%20Statement),%20Ju ne%2018,%202015.pdf?t=1435151677403

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