After receipt and verification of the above points, additional documents (i.e. statutes; last audited financial statements; documents supporting registration as an investment fund manager) are requested from the custodian prior to the implementation of the agreement by the MFDA. As part of the MFDA`s due diligence in verifying the custodian`s adequacy as an acceptable investment site, the MFDA will verify whether the investment fund company or financial institution has already entered into a fiduciary deposit agreement with another securities self-regulatory body. What is the administrative role of IIROC in approving the simple agent agreement? What documentation is required to include a fund manager in the monthly trustee list of IIROC directors? A list of all implemented deposit agreements is regularly published by the MFDA and can be accessed under mfda.ca/news-and-publications/custodial-agreements/. When the investment fund company or the financial institution and its respective investment products held on behalf of the member are mentioned in this listing, the member may conclude that the assets are held in an “acceptable investment position.” 1. What is the purpose of the Simple Agent Agreement The former IDA (now IIROC) and the Canadian Investor Protection Fund (“CIPF”) entered into an agreement on May 9, 2005 in which all existing security contracts, executed on behalf of CIPF as mere agents, were awarded to IIROC for transfer. In managing these custody agreements, IIROC is diligent in ensuring that the trust agreement is in the form prescribed and properly executed by those responsible. Copies of the agreement are available on request. Two signed copies of the simple agent agreement (non-negotiable for the modification of the agreement). The purpose of this communication is to provide members with instructions on certain requirements under Rule 3.3 of the MFDA (customer property segregation). This press release applies to the company`s own assets and to all client assets held by the company, including assets held by a member as agent for the agent. In addition, the notice applies to all members holding assets in an account with a member of the Investment Industry Regulators Organization of Canada (“IIROC”).
This communication does not apply to assets held in their client`s name with a fund company or financial institution. MFDA rules state that members who hold title or clients or other investment products outside their physical property must ensure that the assets are held on an “acceptable securities site.” If the requirements are not met, a member must have sufficient regulatory capital to cover a deduction on his capital equal to the market value of all assets held in an unacceptable location.