Pursuit Financial Services Corporation - s. 5.1 of Rule 31-506

Headnote

Section 5.1 - OSC Rule 31-506 - exemption tomutual fund dealer from the requirement to be a member of theMutual Fund Dealers Association of Canada - exemption for alimited period of time.

Applicable Ontario Securities CommissionRule

Rule 31-506 - SRO Membership - Mutual Fund Dealers.

IN THE MATTER OF

THE SECURITIES ACT

R.S.O. 1990, C. S.5, AS AMENDED(the "Act")

AND

IN THE MATTER OF

ONTARIO SECURITIES COMMISSIONRULE 31-506

SRO MEMBERSHIP B MUTUAL FUNDDEALERS (the "Rule")

AND

IN THE MATTER OF

PURSUIT FINANCIAL SERVICESCORPORATION

EXEMPTION

(Section 5.1 of the Rule)

UPON the Director having received anapplication (the "Application") from Pursuit FinancialServices Corporation ("Pursuit") seeking a decisionpursuant to section 5.1 of the Rule, to exempt Pursuit fromthe application of section 2.1 of the Rule, which required Pursuitto be a member of the Mutual Fund Dealers Association of Canada(the "MFDA") from and after July 2, 2002 on the conditionthat Pursuit is a member of the MFDA by April 1, 2003;

AND UPON considering the Applicationand the recommendation of staff of the Ontario Securities Commission(the "Commission");

AND UPON Pursuit having represented tothe Director that:

1. Pursuit is registered under the Act asa mutual fund dealer and has its head office in Ontario;

2. Pursuit filed a membership application(the "MFDA Application") with the MFDA;

3. Pursuit has complied with all requestsby the MFDA for information and/or documents pertaining toits MFDA Application;

4. Pursuit is not aware of any issues whichremain unresolved between it and the MFDA in respect of itsMFDA Application;

5. Pursuit is not, to its knowledge, in breachof any requirements of the Act or the regulations or rulesmade thereunder;

6. Pursuit received an exemption from section2.1 of the Rule prior to July 2, 2002 ("the Initial Exemption")on the condition that Pursuit is a member of the MFDA by December1, 2002; and

7. Pursuit will not be a member of the MFDAby December 1, 2002.

AND UPON the Director being satisfiedthat to do so would not be prejudicial to the public interest;

IT IS THE DECISION of the Director, pursuantto section 5.1 of the Rule, that Pursuit is exempt from therequirement of section 2.1 of the Rule, as modified by the InitialExemption, to be a member of the MFDA by December 1, 2002 onthe condition that from and after April 1, 2003, so long asPursuit is registered as a mutual fund dealer under the Act,it is a member of the MFDA.

November 27, 2002.

"David M. Gilkes"