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Bulletin #0925-P

For further information, please contact:

Stacey Shein
Senior Legal & Policy Counsel
Policy
For Distribution to Relevant Parties within your Firm

Revised MFDA Staff Notice MSN-0040 Outside Activity

MFDA staff has revised MFDA Staff Notice #0040 Outside Activity, which was last updated in March 2016, to provide Members and Approved Persons with updated guidance reflecting recent regulatory amendments, as discussed below.

On December 16, 2021, the Canadian Securities Administrators (CSA) published amendments to National Instrument 33-109 Registration Information and changes to the Companion Policy to NI 33-109. Consequential amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations and changes to the Companion Policy to NI 31-103 were also published, collectively referred to as the “amendments”. (See MFDA Bulletin ##0906-P for more information.)

The amendments came into force on June 6, 2022, and among other matters, establish the following:

  • a new framework for reporting outside activities to regulators
  • a definition of “position of influence” and a new rule that codifies restrictions on registered individuals with regard to the purchase or sale of securities to an individual who has a relationship with the registered individual arising from the position of influence, and
  • codify restrictions previously imposed through terms and conditions on registration relating to outside activities that are positions of influence.

MFDA Staff Notice #0040 Outside Activity has been revised to provide Members and Approved Persons with updated guidance that reflect the amendments.

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