Notice of Commission Deemed Approval – Housekeeping Amendments to MFDA Rules to Enhance Protection of Older and Vulnerable Clients – Mutual Fund Dealers Association of Canada (MFDA)

The Ontario Securities Commission did not object to the classification as housekeeping of the proposed MFDA Rules amendments aiming to enhance protection of older and vulnerable clients (the Housekeeping Amendments).

The Housekeeping Amendments are designed to make MFDA requirements uniform in all material respects with the recent amendments made by the Canadian Securities Administrators (CSA) to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. More specifically, the Housekeeping Amendments:

• add definitions of the relevant terms;
• require MFDA Members and Approved Persons to take reasonable steps to obtain from the client the name and contact information of a trusted contact person and the client's written consent to contact the trusted contact person in prescribed circumstances;
• create a regulatory framework for Members who place a temporary hold on the purchase or sale of a security on behalf of a client on the basis of financial exploitation of a vulnerable client;
• create a requirement to provide written disclosure to the client regarding the disclosure of client information to a trusted contact person and placing of a temporary hold; and
• create a requirement for Members and Approved Persons to keep appropriate records.

The Housekeeping Amendments are expected to become effective on December 31, 2021, which is harmonized with the implementation date adopted by the CSA.

A copy of the MFDA Notice of Approval/Implementation, including the text of the approved amendments, can be found at www.osc.ca.

In addition, the British Columbia Securities Commission; the Alberta Securities Commission; the Financial and Consumer Affairs Authority of Saskatchewan; the Financial and Consumer Services Commission of New Brunswick; the Manitoba Securities Commission; the Nova Scotia Securities Commission; the Prince Edward Island Office of the Superintendent of Securities Office; Office of the Superintendent of Securities, Northwest Territories, Office of the Superintendent of Securities, Nunavut and Office of the Yukon Superintendent of Securities have either not objected to or have approved the Amendments.