Iiroc Custodial Agreements

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. Members are expected to check the sites where they hold assets and make every effort to ensure that the relevant authorities sign the mandatory guarantee agreement with the MFDA or, failing that, execute a hedging contract with the company itself, which contains the provisions of Rule 3.3.3 (b). When a member relies on the receivership agreement between the fund company or the financial institution and the MFDA, the member must ensure that the following documents have been provided to the MFDA for each company with which it has a conservatory retention: MFDA rules require that members holding title deeds or clients or other investment products outside their physical property be required to hold the assets in an “acceptable place of investment of securities.” 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. The general notes and definitions in Form 1 of the MFDA define acceptable securities sites. To meet this definition, two conditions must be met: (i) the site itself must be an entity in the general notes and definitions; and (ii) a written interim custody agreement must be entered into with that body, which specifies the conditions and conditions on which these securities or other investment products are deposited. 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.” Considering these premises and other good and valuable considerations that each party receives from each of the other parties, the parties agree that notifications from MFDA staff must assist members and their authorized persons in interpreting, enforcing and complying with the requirements of the MFDA`s statutes and rules. The notices refer to these requirements and interpret MFDA staff on how to meet these requirements. Advice may also contain good practices or instructions. In order to meet the MFDA`s requirements for acceptable securities sites, the following requirements must be met: the purpose of this communication is to provide members with instructions on certain requirements under MFDA Rule 3.3 (customer property segregation).