On January 23, 2009, the Mutual Fund Dealers Association of Canada published Bulletin #0354-P with respect to proposed amendments to MFDA Rules relating to the sale of all principal protected notes (PPNs) aimed at ensuring that PPNs are subject to due diligence, KYC and suitability obligations. The CSA previously published a number of notices on the issue and, as set out in the MFDA's Bulletin, has requested that the MFDA take appropriate action. As such, the MFDA has stated that it intends to develop a discussion paper for consideration by the MFDA Policy Advisory Committee and had invited comments on the impact of potential amendments in order to assist MFDA staff in developing a proposal.

For more information, see also:

CSA Notice 46-303 - Principal Protected Notes (July 7, 2006)

CSA Notice 46-304 - Update on Principal Protected Notes (July 27, 2007)

CSA Notice 46-305 - Second Update on Principal Protected Notes (August 29, 2008)