Calculation of Risk Adjusted Capital (Rule 3.2.2, 3.2.5 and Form 1) – Mutual Fund Dealers Association of Canada (MFDA)

 
On June 29, 2006, the Board of Directors of the Mutual Fund Dealers Association of Canada made and enacted the following amendments to Rule 3.2:

3.2.2 Member Capital.

(a) Each Member shall maintain capital in respect of its firm business in accordance with the requirements set out in Form 1.

(b) Each Member shall at all times maintain positive total financial statement capital as calculated in accordance with the requirements set out in Form 1.

. . .

3.2.5 Notice Regarding Accelerated Payment of Long Term Debt. Each Member shall immediately notify the Corporation of any request or demand by a creditor for accelerated payments or any other payments in addition to those specified under the agreed regular repayment schedule with respect to contingent and long term liabilities owed by the Member.

On June 29, 2006, the Board of Directors of the Mutual Fund Dealers Association of Canada made and enacted the following amendment to the General Notes and Definitions section of the MFDA Financial Questionnaire and Report:

MFDA FINANCIAL QUESTIONNAIRE AND REPORT

GENERAL NOTES AND DEFINITIONS

. . .

11. For purposes of these statements and capital calculations, all related party debt must be recorded as a current liability unless a subordination agreement in a form satisfactory to prescribed by the MFDA has been executed by the Member and other relevant parties in relation to such debt.