The Saskatchewan Financial Services Commission has issued an order exempting certain members of the Mutual Fund Dealers Association of Canada from prohibitions on commingling certain funds.

The order exempts level 3 and level 4 MFDA members from the commingling prohibitions in the national instrument that sets out the primary regulatory requirements for mutual funds (numbered as 81-102), subject to certain conditions.

The conditions include that the dealers: deposit clients’ money into, and hold such monies until they are paid out in accordance with the rules within, one or more accounts at a Canadian financial institution that are designated by the financial institution as “trust accounts”; ensures that all monies received from clients are received, accounted for and paid out in accordance with sections the rule; maintains clear records of commingled client assets, reconciled in accordance with MFDA rules and properly accounted for daily; and, complies with all requirements of the rules on the handling and segregation of client cash other than the commingling prohibitions.