With its client relationship model proposals having received member approval at its December 1 annual general meeting, the Mutual Fund Dealers Association of Canada Friday announced transition periods for various elements of that initiative.

In a bulletin to members, the MFDA indicated that proposed amendments implementing its CRM proposals have received all the necessary approvals. Now, the MFDA is establishing the deadlines for firms to meet these new requirements.

The new relationship disclosure requirements will have to be in place for new clients by September 28, 2011. However, firms will have until December 3, 2013 to provide this sort of information to existing clients. The extended implementation period for existing clients is to give firms time to deal with logistical issues with making this sort of disclosure.

A one-year transition period (expiring December 3, 2011) is being provided for new requirements relating to account suitability triggers and know-your-client information updates.

The same transition period will also apply to changes to: branch and head office trade review criteria/thresholds; amendments to the list of mandatory KYC information that must be collected on account opening; and, the requirement, where any material changes have been made to the information contained in new account forms or KYC forms.

Firms will have 18 months (to June 3, 2012) to comply with changes to performance reporting requirements, and rate of return disclosure requirements.

IE