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MUTUAL FUND DEALERS ASSOCIATION OF CANADA
(MFDA)

AMENDMENTS TO MFDA RULES TO HARMONIZE WITH
CLIENT RELATIONSHIP MODEL PHASE 2 PROVISIONS
EFFECTIVE JULY 15, 2014

NOTICE OF COMMISSION APPROVAL



The Recognizing Regulators of the Mutual Fund Dealers Association of Canada (MFDA) have approved or not objected to amendments to MFDA Rules (the MFDA 2014 CRM2 Amendments) harmonizing them with certain requirements in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103) that were introduced as part of the Client Relationship Model, Phase 2 (CRM2) and which take effect on July 15, 2014 (the CSA 2014 CRM2 Amendments).

The following table sets out the relevant provisions of the CSA 2014 CRM2 Amendments and the corresponding MFDA Rules that are amended by the MFDA 2014 CRM2 Amendments:

NI 31-103 section

MFDA Rule

 

Paragraph 14.2(2)(m) [relationship disclosure information]

MFDA Rule 2.2.5(h)

 

Section 14.2.1 [pre-trade disclosure of charges]

MFDA Rule 2.4.4

The Ontario Securities Commission approved the MFDA 2014 CRM2 Amendments.

The British Columbia Securities Commission, the Alberta Securities Commission, the Financial and Consumer Affairs Authority of Saskatchewan, the Manitoba Securities Commission, the Financial and Consumer Services Commission of New Brunswick, the Nova Scotia Securities Commission, and Prince Edward Island Office of the Superintendent of Securities also approved or did not object to the MFDA 2014 CRM2 Amendments.

The MFDA 2014 CRM2 Amendments were published for public comment on October 10, 2013 at (2013) 36 OSCB 10006 and on the OSC website. No comments were received from the public.

A decision granting MFDA members relief from the CSA 2014 CRM2 Amendments and accompanying CSA Staff Notice 31-339 are published in Chapters 2 and 1 of this Bulletin, respectively.