New Rules 1.2 and 1.2.6
New MFDA Rules 1.2 (Definitions) and
1.2.6 (Continuing Education)
(Not Yet in Effect)
Rule 1.2
Definitions. For the purposes of this Rule and Policy No. 9,
"continuing education program" ("CE program") means the MFDA's Continuing Education program.
"Business Conduct Credit" means one hour of continuing education activity in a business conduct topic area, as prescribed under Policy No. 9.
"cycle" means any 24-month period beginning on December 1st of an odd-numbered year.
"MFDA Compliance Credit" means a continuing education activity in an MFDA Compliance topic area, as prescribed under Policy No. 9.
"Professional Development Credit" means one hour of continuing education activity in a professional development topic area, as prescribed under Policy No. 9.
The MFDA CE Program referred to in subsection (1)(a) above, consists of the following components: (i) business conduct; (ii) professional development; and (iii) MFDA compliance.
1.2.6 Continuing Education (CE)
Compliance with CE Requirements. Each Member and each Approved Person shall comply with continuing education requirements applicable to them, as set out under this Rule and Policy No. 9.
Dealing Representative. For each cycle, every Approved Person who is registered as a dealing representative under Canadian securities legislation must complete 8 Business Conduct Credits, 20 Professional Development Credits and 2 MFDA Compliance Credits, in accordance with requirements under Policy No. 9.
Chief Compliance Officer, Ultimate Designated Person and Branch Manager. Where an Approved Person is not registered as a dealing representative, but is registered as either a chief compliance officer or ultimate designated person under Canadian securities legislation, or is designated by the Member as a branch manager, alternate branch manager, or alternate chief compliance officer under MFDA Rules, that individual must, for each cycle, complete 8 Business Conduct Credits, and 2 MFDA Compliance Credits, in accordance with requirements under Policy No. 9.
CE Requirements for a Partial Cycle.
Non-Application. An Approved Person is not required to meet the CE requirement for any component credit specified under Rule 1.2.6(b) or (c), where, in any given cycle, the Approved Person is subject to that component requirement for a period that is less than, or equal to, 2 months.
Pro-ration of Credits. Where an Approved Person is subject to requirements for any CE component credit specified under Rule 1.2.6(b) or (c) for less than a full cycle, and the period in question is greater than 2 months, the Approved Person may be able to satisfy such requirements on a pro-rata basis, in accordance with the applicable provisions of Policy No. 9.
Leaves of Absence. Where an Approved Person is subject to the requirements under Rule 1.2.6(b) or (c), and was absent, for a period of at least 4 consecutive weeks, from their employment as an Approved Person, the CCO can reduce the CE credit requirements applicable to that Approved Person under Rule 1.2.6(b) or (c), in accordance with the applicable provisions under Policy No. 9.
Accreditation. The Corporation shall only recognize continuing education activities that have met the minimum requirements set out under Policy No. 9.
Evidence of Completion. Each Member and each Approved Person noted in subsections (b) and (c) above must maintain evidence of completion of CE credits for a cycle, as required under this Rule and Policy No. 9, for a 24-month period following the end of that cycle.
Reporting. Each Member and each Approved Person noted in subsections (b) and (c) above must meet the minimum requirements set out under Policy No. 9 respecting notification to the Corporation of the completion of CE credits.
Non-compliance.
Where, for any given cycle, an Approved Person does not meet the CE credit requirements of the MFDA continuing education program, that individual shall cease to act as an Approved Person of any Member, until such time as the Corporation has determined that the prescribed CE credit requirements have been met.
Each Member shall be liable for and pay to the Corporation fees, levies, or assessments in the amounts prescribed from time to time by the Corporation for the failure of the Member or an Approved Person to comply with the requirements of this Rule or Policy No. 9.