Final Rule: OSC Rule - 31-506 - SRO Membership - Mutual Funds Dealers

ONTARIO SECURITIES COMMISSION RULE 31-506

SRO MEMBERSHIP - MUTUAL FUND DEALERS

PART 1 DEFINITIONS

1.1 Definitions - In this Rule

"effective date" means the date that this Rule comes into force under section 4.1.

"MFDA" means the Mutual Fund Dealers Association of Canada, a self-regulatory organization for mutual fund dealers.

PART 2 MEMBERSHIP REQUIRED

2.1 Membership Required - From and after July 2, 2002, a mutual fund dealer shall be a member of the MFDA.

PART 3 APPLICATION FOR MEMBERSHIP

3.1 Mutual Fund Dealers on Effective Date - A mutual fund dealer which is a mutual fund dealer on the effective date shall file with the MFDA, no later than the thirtieth day after the effective date:

(a) an application for membership in the form prescribed by the MFDA; and

(b) the fees prescribed by the MFDA for the application for membership.

3.2 New Applicants for Registration as Mutual Fund Dealers Before the Effective Date - A person or company that has applied to the Commission for registration as a mutual fund dealer before the effective date and that is not registered as a mutual fund dealer on the effective date shall file with the MFDA, no later than the thirtieth day after the effective date, the application for membership and fees referred to in section 3.1.

3.3 New Applicants for Registration as Mutual Fund Dealers After the Effective Date

(1) Subject to subsection (2) , a person or company that applies to the Commission for registration as a mutual fund dealer after the effective date shall file with the MFDA:

(a) an application for membership in the form prescribed by the MFDA; and

(b) the fees prescribed by the MFDA for the application for membership

on the same date as it files its application for registration with the Commission as a mutual fund dealer.

(2) If a person or company applies to the Commission for registration as a mutual fund dealer after the effective date, but before the end of the thirtieth day after the effective date, then it shall file the application and fees referred to in subsection (1) with the MFDA by the end of the thirtieth day after the effective date, and it is not required to file the specified documents on the same date as it files its application for registration with the Commission.

PART 4 EFFECTIVE DATE

4.1 Effective Date for Rule - This Rule shall come into force on:

(a) the later of

(i) March 30, 2001, and

(ii) that day which is 15 days after the Rule is approved by the Minister of Finance

if the Minister of Finance approves the Rule; or

(b) April 30, 2001, if the Minister of Finance does not approve the Rule, reject it or return it for further consideration.

PART 5 EXEMPTION

5.1 Exemption - The Director may grant an exemption to this Rule, in whole or in part, subject to such conditions or restrictions as may be imposed in the exemption.