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Bulletin #0682-P

For further information, please contact:

Paige Ward
General Counsel, Corporate Secretary and Vice President, Policy
Policy
For Distribution to Relevant Parties within your Firm

Proposed Amendments to MFDA Rule 2.3 (Power of Attorney/Limited Trading Authorization/Discretionary Trading)

On March 10, 2016, the British Columbia Securities Commission (“BCSC”) published for public comment proposed amendments to MFDA Rule 2.3 (Power of Attorney/Limited Trading Authorization/Discretionary Trading).

MFDA Rule 2.3.1(a) currently provides that no Member or Approved Person shall accept or act upon a general power of attorney or other similar authorization from a client in favor of the Member or Approved Person or engage in any discretionary trading.  MFDA Rule 2.3.1(b) currently allows for an exception to the prohibition in Rule 2.3.1(a) by providing that an Approved Person may accept or act upon a general power of attorney or similar authorization from a client in favor of the Approved Person where such client is a spouse, parent or child of the Approved Person.

Members have requested clarification and raised certain concerns in respect of requirements under the Rule.  The proposed amendments are intended to address these issues and related matters, while maintaining appropriate risk controls and investor protection.

Comments

Comments should be made in writing.  One copy of each comment letter should be delivered by June 10, 2016 (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: Anne Hamilton, Senior Legal Counsel, 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.

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