Compliance Memo

Compliance Memorandum 2010-01; Payment of Commissions to Unregistered Corporation

For more information, contact:

Compliance Team
compliance@gpwealth.ca

Date Issued:

October 18, 2010

On March 29, 2010 the MFDA issued a notice MR-0072 “Payment of Commissions to Unregistered Corporation” which replaces MR-0002 originally issued May 15, 2001. The agreement form identified as Schedule “A” to the Notice has been revised in accordance with the terms of MFDA Rule 2.4.1 and will replace the original Schedule “A”.

Background:

The securities regulatory authorities of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick and Nova Scotia have approved proposed amendments to MFDA Rule 2.4.11 (Payment of Commissions to Unregistered Corporation) and the rule, as revised, is effective immediately.

Implementation of New Requirements:

Financial Advisors who currently direct commissions to their corporation must complete and sign a revised agreement form “Schedule “A” by March 26th, 2011 in order to continue receiving payments to an unregistered corporation. A copy of the revised Schedule “A” is can be downloaded from your advisor website.

As always, if you have any questions or comments, contact the Compliance Department by email at compliance@gpwealth.ca.