The Ontario Securities Commission has approved amendments to the Mutual Fund Dealers Association’s rule regarding the calculation of risk adjusted capital.

The amendments require members to maintain positive financial statement capital, to notify the MFDA at the time of any request for accelerated payments by creditors not contemplated in an existing repayment schedule, and to treat related party debt as a current liability unless a subordination agreement in the form prescribed by the MFDA has been signed.

The proposed amendments were published for comment on July 28. It received a comment form Manulife Financial and one from the Federation of Mutual Fund Dealers. Since then, some immaterial changes have been made to the amendments since the time they were originally published.