The Mutual Fund Dealers Association of Canada Rule 2.4.1 has been suspended in New Brunswick until such time as a decision or legislative amendments have been made with respect to the payment of commissions to non-registered entities.

On May 23, the NBSC also issued Blanket Order 32-501 which provides, upon complying with certain terms and conditions, a registration exemption to permit a corporation controlled by an individual registrant to receive commissions or fees from the registrant’s registered dealer.

The MFDA requires that any remuneration in respect of business conducted by an approved person on behalf of a member dealer be paid by the member (or an affiliate) directly to and in the name of the approved person.

Securities regulators in British Columbia, Nova Scotia, Ontario, Saskatchewan and Manitoba have suspended MFDA Rule 2.4.1 until Dec. 31, 2008.

As a result, provided that certain conditions are satisfied, members with approved persons registered in these jurisdictions are permitted to pay commissions on behalf of those approved persons to a corporation that is itself not registered as a dealer or a salesperson, notwithstanding the provisions of Rule 2.4.1.