Compliance Memo

Compliance Memorandum 2013-02; Sale of PPNs by Approved Persons of MFDA Members

For more information, contact:

Compliance Team

Date Issued:

March 7, 2013

On February 13th, 2013, the MFDA issued Member Regulation Notice MR-0081, Sale of Principle Protected Notes by Approved Persons of MFDA Members. There are two categories of PPNs: Specified PPNs and non-specified PPNs.

Specified PPNs have a term to maturity of five years or less and are eligible for coverage by the Canadian Deposit Insurance Corporation. Specified PPNs are distributed by banks or other federal or provincial deposit taking institutions.

Non-specified PPNs represent all other PPNs, and must be distributed through Registered Dealers. PPNs that are distributed by mutual fund licensed individuals must be distributed through the Dealer, and are subject to KYC and suitability obligations under MFDA Rules.

All sales of non-specified PPNs must be done through GP Wealth Management Corporation.

As always, if you have any questions or comments, contact the Compliance Department by email at