Notice of Commission Approval – Amended MFDA Rules of Procedure – Mutual Fund Dealers Association of Canada (MFDA)

 
The Ontario Securities Commission has approved the amended MFDA Rules of Procedures. In addition, the Alberta Securities Commission, the Manitoba Securities Commission, New Brunswick Securities Commission, Nova Scotia Securities Commission, and Saskatchewan Financial Services Commission approved, and the British Columbia Securities Commission did not object to the amended MFDA Rules of Procedure. Amendments made to the MFDA Rules of Procedure reflect minor housekeeping amendments, enhancements based on past proceedings, and new provisions governing applications for interim relief (Part E) and the appointment of monitors to manage the affairs of MFDA members (Part F).

The amended MFDA Rules of Procedure were initially published for comment on July 31, 2009 (2009) 32 OSCB 6203. The MFDA did not receive any comments. Some non-material changes have been made to sections 18.1, 21.1 section 24.9 of the amended Rules of Procedure that were published for comment. The changes were made to either correct typographical errors or address inconsistencies, as follows:

18.1 Request for Membership Application Hearing

(1) A hearing pursuant to section 11.6 of MFDA By-law No. 1 shall be commenced by an Applicant filing a Request for Membership Application Hearing (a "Request for Hearing") with the Secretary.

(2) The Applicant must file a Request for Hearing within 14 days of effective service of a proposal by the Board of Directors to approve its application for membership subject to terms and conditions or to refuse the its application for membership.

(3) A Request for Hearing shall be in the form provided by the Secretary.

(4) If the Applicant fails to request a hearing in accordance with this Rule 18.1, the Hearing Panel may approve the application subject to terms and conditions or refuse the application.

21.1 Provision of Witness Lists and Statements

(1) Subject to Rule 22, a party to a hearing conducted pursuant to section 11.5.311.7.2 of MFDA By-law No. 1 shall provide the other party with:

(a) a list of the witnesses the party intends to call at the hearing; and

(b) in respect of each witness named on the list either:

(i) a witness statement signed by the witness; or

(ii) a transcript of a recorded statement made by the witness; or

(iii) if no signed witness statement or transcript referred to in sub-Rules (i) and (ii) is available, a summary of the evidence that the witness is expected to give at the hearing.

(2) The parties shall comply with the requirements of sub-Rule (1) at least 14 days prior to the commencement of the hearing.

24.9 Order

(1) Once the Hearing Panel makes an order in the application the Corporation shall forthwith:

(a) serve a copy of the reasons for decision, if any and the order on the Respondent and Member or Members concerned on such terms and conditions as the Hearing Panel considers appropriate;

(b) where notice has not been provided to a Respondent, serve a copy of the Notice of Application and at the discretion and on such terms and conditions as of the Hearing Panel may consider as appropriate such evidence and material relied upon in the application, on such terms and conditions as the Hearing Panel considers appropriate; and

(c) advise the Respondent in writing of the right to request a review pursuant to section 24.3.6 of MFDA By-law No. 1.