Notice of BCSC Non-Objection to Proposed New MFDA Rule 2.4.4 (Transaction Fees or Charges) and Amendments to MFDA Rule 5.1 (Requirement for Records)


View PDF of MFDA Proposed New Rule 2.4.4 and Proposed Amendments to Rule 5.1 - Blackline  PDF
View PDF of Summary of Public Comments Respecting Request for Comment on Proposed New MFDA Rule 2.4.4 and Proposed Amendments to MFDA Rule 5.1 PDF

On February 8, 2011, the BCSC and the MFDA's other recognizing regulators1 did not object to, not disapprove, or did approve2, as the case may be, the MFDA's proposed new Rule 2.4.4 (Transaction Fees or Charges) and amendments to MFDA Rule 5.1 (Requirement for Records).

The amendments are intended to assist investors to make transaction decisions in their accounts.  Members must inform investors of transaction fees or charges before accepting their orders.  Members will also be required to maintain records evidencing that the client was informed of all fees and charges.

The BCSC published the proposal for comment on its website on June 25, 2010 for a 90-day comment period. The MFDA received six comment letters on the proposal, which are summarized and responded to in the attachment to this notice.  We also attach a blacklined copy of Rules 2.4.4 and 5.1 showing the changes to the current MFDA Rules.

February 18, 2011

Ref: Proposed New MFDA Rule 2.4.4 (Transaction Fees or Charges) and Proposed Amendments to MFDA Rule 5.1 (Requirement for Records)

This Notice may refer to other documents.  You can find these documents at the B.C. Securities Commission public website atwww.bcsc.bc.cain the section Securities Law & Policy: Policies & Instruments.

1 The Alberta Securities Commission, Saskatchewan Financial Services Commission, Manitoba Securities Commission, Ontario Securities Commission, New Brunswick Securities Commission, and Nova Scotia Securities Commission.
2 Non-objection, non-disapproval, and approval are the different ways in which the recognizing regulators express their decisions after reviewing proposed MFDA rules.