MFDA codifies standards for assessing suitability of leveraging

February 7, 2013

The Ontario Securities Commission has approved amendments to the Mutual Fund Dealers Association of Canada's Rule 2.2.1 and Policy No. 2 regarding suitability obligations in cases of leveraged borrowing. The changes will, among other things, codify minimum criteria standards for assessing the suitability of client leveraging and provide guidance on the type of documents MFDA members will be required to review and maintain to facilitate supervision of a leveraging strategy. The MFDA released proposed amendments on the subject in July 2011.

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