Obligation of Members to Communicate Regulatory Information to Approved Persons and Relevant Employees

MFDA staff issues MFDA Notices and Bulletins to assist Members and their Approved Persons in the application of and compliance with MFDA By-laws, Rules and Policies and to communicate information regarding regulatory developments and initiatives. MFDA staff has become aware of situations where Members have failed to communicate relevant information contained in MFDA Staff Notices and Bulletins to their Approved Persons and employees.

Members are reminded of the requirement under MFDA Policy No. 2 Minimum Standards for Account Supervision to ensure that relevant information contained in MFDA Staff Notices and Bulletins, as well as other relevant regulatory information, is communicated to all Approved Persons and employees. In addition, procedures relating to the method and timing of distribution of the relevant information contained in MFDA Staff Notices and Bulletins must be clearly detailed in the Member’s written procedures and made available to all sales and supervisory personnel. Members should ensure that they maintain evidence of compliance with such procedures.

Obligation to Ensure Member Policies and Procedures Meet Current Regulatory Requirements

Members must also ensure that their policies and procedures are maintained on a current basis to incorporate requirements as identified in MFDA Staff Notices and Bulletins.