Certain limited market dealers that have become exempt market dealers under the new registration rules will have two years to begin delivering quarterly account statements to clients.

The new rules, which took effect at the end of September, require all registered dealers to deliver account statements to clients at least once every three months. Dealers who belong to the Mutual Fund Dealers Association of Canada were initially given 24 months to comply, but there was no transition period provided for MFDA members in Ontario and Newfoundland who held a limited market dealer license.

Those limited market dealer licenses automatically converted to an exempt market dealer license under the new rule. The MFDA reports that a blanket order has been issued that allows its members in Ontario and Newfoundland who hold an exempt market dealer license to have a two year transition period to meet the new quarterly account statement delivery requirements.

“Members are reminded that the two year transitional relief only applies to members holding an exempt market dealer license in Ontario or Newfoundland. In provinces other than Ontario and Newfoundland, members that were acting as a dealer in the exempt market prior to Sept. 28, 2009 have 12 months from this date to apply for registration as an exempt market dealer and comply with relevant requirements,” it says, adding that there is no transition period for new applicants for registration as an exempt market dealer.

IE