MD Account information guide

Important information about the MD mutual funds is contained in their prospectus, which can be obtained by calling us at 1 800 267-2332 or by visiting our website at md.ca. Please read it carefully before investing. For money market funds, yield will fluctuate and there is no assurance that such a fund can maintain a fixed net asset value. For any mutual fund, unit/share values, yields and investment returns will fluctuate. Past performance is not necessarily indicative of future performance.

Where to reach us:

Head Office, Client Services
1870 Alta Vista Dr., Ottawa ON K1G 6R7
1 800 267-2332 | md.ca

In this MD account information guide, “you” and “your” refer to you, our potential client or client; and “we,”  “our” and “us” refer to MD Management Limited (MD). MD Advisor refers to an MD Management Limited Financial Consultant (Investment Advisor in Quebec).

Aux titulaires de compte francophones

Vous avez demandé que la présente convention ainsi que tous les formulaires, états de compte et autres documents vous soient fournis en anglais. Pour obtenir un formulaire en français, composez le 1 800 267-2332.

Opening an MD account

Qualified Investors

Any person or company who is a “Qualified Investor” may open an MD account. A Qualified Investor is any of the following:

1. Any of Canada’s physicians, which includes practising physicians, retired physicians, medical students and residents, and their immediate families^*;
2. Corporations or other entities, which are either controlled by one or more Canadian physicians or by the spouse or child of a Canadian physician, or where no less than 80% of the participants in such entities are Canadian physicians;
3. The Canadian Medical Association (CMA) and its divisions, affiliates and Affiliate Societies^** and their respective directors, officers, employees^*** and immediate families;
4. Employees^*** of MD Financial Management Inc. and its affiliates and their immediate families;
5. A non-physician employee of a professional corporation, or other entity, through which a Canadian physician or physicians engage in the practice of medicine; the spouse of the non-physician employee is also a Qualified Investor;
6. Such other persons, individuals and entities which, in the reasonable and sole opinion of MD Financial Management Inc. or MD, have a significant and continuing connection with or relationship to MD Financial Management Inc., one of its affiliates, the Canadian physician community, or persons, individuals or entities referred to in (a) through (e) above; and
7. Tax-deferred savings plans, including tax-free savings accounts, established by the individuals referred to in (a), (c), (d), (e), (f) above.

*“Immediate family” of a Qualified Investor includes his or her spouse, child, parent, brother, sister, grandchild, grandparent, mother-in-law, father-in-law, brother-in-law, sisterin-law, niece and nephew, as well as the spouse of his or her child, grandchild, grandparent, niece and nephew.

**“Affiliate Society” includes any Canadian medical organization that has been accepted by the General Council of CMA as an Affiliate Society.

***“Employees” of MD Financial Management Inc. and employees of its subsidiaries and the CMA, its affiliates and its Affiliate Societies includes any individual employed on a permanent part-time or permanent full-time basis.

MD account types

We offer the following account types, and we will assign you an account number, identifying you and the type of account you hold.

Registered plans, where contributions may be tax deductible within allowed limits:

• individual registered retirement savings plan (RRSP) account
• individual locked-in RRSP or locked-in retirement account (LIRA); this type of account is opened to accommodate money transferred in from an employee pension plan
• individual registered retirement income fund (RRIF) account
• registered education savings plan (RESP) account
• spousal RRSP account; in this type of account, your spouse is entitled to deduct, for income tax purposes, contributions that he or she makes to your RRSP account; you are the account holder and all investment instructions must be given by you
• spousal RRIF account; this type of account is used if your spouse received income tax deductions
• tax-free savings account (TFSA)

Non-registered accounts:

• individual investment plan account
• joint investment plan account
• corporate or professional investment plan account; some doctors may practise through professional corporations, which may also open investment plan accounts
• MD Family Trust account

You may open these types of accounts (if applicable) as:

MD Plus™ — An MD Plus account is an advisory feebased account. You pay MD an agreed fee for our services, but you do not pay any commissions on acquisitions of securities for your account.

MD ExO® Direct — Please contact your MD Advisor or go to md.ca for more information about MD ExO Direct, which is an online discretionary managed account platform. Separate documentation applies to the MD ExO Direct accounts.

Self-directed — If you wish to conduct your own trading in securities on a self-directed basis, we encourage you to consider Scotia iTRADE^®, which is the online self-directed trading platform operated by Scotia Capital Inc. MD is an affiliate of Scotia Capital Inc. You will open a Scotia iTRADE account (and not an MD account) for this self-directed trading.

MD account documents

All new accounts require the completion of a New Account Application Form, which contains an account agreement.

In applying to open an MD account, you:

• declare the information you have provided is true and complete;
• undertake to furnish proof of your age and of the age of your spouse, if applicable, if we ask for it;
• declare, upon opening a corporate account, that you have the authority to bind the applicant corporation, and that the corporation has the power and capacity to have such an account; you must also provide us with your articles of incorporation and a corporate resolution;
• acknowledge you have received the Fund Facts document relating to any mutual fund(s) you have invested in; and
• represent that you are a Qualified Investor.

Some accounts require completion of specific additional documents:

• MD Plus account — You must also complete a fee agreement.
• MD ExO Direct account — You complete the application and receive all documentation online. Please see the separate MD ExO Direct account documentation.
• Registered retirement savings plan (RRSP) — You must also complete an MD Retirement Savings Plan application.
• Registered retirement income fund (RRIF) — You must also complete an MD Retirement Income Fund application.
• Registered education savings plan (RESP) — You must also complete an MD Educational Savings Plan application.
• Tax-free savings account (TFSA) — You must also complete an MD Tax Free Savings Account application.

Beneficiary designations for registered plans

You may indicate who is to receive the assets in your registered plan when you die. You can change your beneficiary at any time. Just call or write to us to request the proper form.

If you want to designate more than one beneficiary, please attach a separate list. Be sure to indicate the percentage of your assets that is to go to each beneficiary.

Quebec residents should note that a designation of a beneficiary for an investment not in the nature of life insurance can be made only in your will or marriage contract.

Manitoba residents should note that a designation of a beneficiary by means of a designation form will not be revoked or changed automatically by any future marriage or divorce. Should you wish to change your beneficiary in the event of a future marriage or divorce, you will need to do so by means of a new designation. Please call us for the appropriate form.

Making investments in your MD account

Tell us how you would like us to invest your first contribution by completing an MD Transaction Request Form.

To transact and ensure a timely purchase on your

MD account, we encourage you to contact your

MD Advisor, call your local MD Office, call the MD Trade Centre toll-free at 1 800 267-2332, or log in to My MD via md.ca.

Before you purchase a mutual fund, MD will send you the most recent version of the Fund Facts document for the mutual fund for your review. Fund Facts provide key information that is relevant to your investment decision.

If you mail your trade request to MD, the MD Trade Centre will contact you by telephone to confirm how you would like the Fund Facts delivered. If MD is unable to reach you, the Fund Facts document will be mailed to you and your fund purchase request will be post-dated for five business days from the date the document was sent.

Terms and conditions for your MD account

The following terms and conditions apply to clients and accounts opened with MD.

Purchasing mutual funds

Many mutual funds reserve the right, at their sole discretion, to accept or reject subscriptions for securities of mutual funds. Where a purchase request for securities of a mutual fund is received by MD and payment of the total amount of the purchase order and all necessary documents are not received by MD within two business days of the date on which the issue price of the securities of the mutual fund in question is determined for the purchase order, MD will be deemed to have received and accepted, on the next valuation date, a redemption request for an equivalent number of securities of the mutual fund purchased. The amount of the redemption proceeds will be used to reduce any amount owing for the initial purchase. Any shortfall will entitle MD to collect such amount, together with any charges or expenses incurred in so doing and interest thereon, from the investor who placed the order. Any excess that may remain will be deposited to the fund in question.

Limitation of responsibility

Neither MD nor any of its affiliates shall be bound to see to the execution of any agency, trust (whether express or implied), charge, pledge or equity to which some or all property in an account or any interest therein are subject, or to ascertain or inquire whether any purchase, sale or transfer, or other transaction by the client or their personal representatives, is authorized by such agency, trust, charge, pledge or equity, or to recognize any person as having interest therein except the person or persons in whose name or names the account has been established. The receipt of the person in whose name the account is established — or, if an account is established in the names of more than one person, the receipt of any one such person, or of the duly authorized agent of any such person(s) — shall be a sufficient discharge for all money, securities and other property payable, issuable or deliverable in respect of such account and from all liability to see to the proper application thereof.

For MDRSP account holders

When you complete an MD Retirement Savings Plan application, you apply to us for a retirement savings plan in accordance with the Declaration of Trust for the MDRSP, the Income Tax Act (Canada) and any applicable provincial legislation. Any investments held for an MDRSP are governed by the terms and conditions in the MDRSP Declaration of Trust. If there is a conflict between provisions here and the Declaration of Trust, the Declaration of Trust applies. You appoint us your agent for the purpose of appointing a trustee and instructing such appointed trustee to act as trustee for the MDRSP. We will use the money in your MDRSP to buy investment products according to your instructions.

If you designate a beneficiary for your MDRSP, you are also thereby designating a beneficiary for any interest your MDRSP may have in the Group Annuity Policy MD Stable Income Fund at the time of your death.

You appoint us to act as your agent on your behalf and for your sole benefit to do what we consider necessary, including the execution of insurance contracts with the designated insurer, MD Life Insurance Company, or others (to transfer all or part of the funds held in connection with Group Savings Policy GA-485 (MD Income Fund) and/or the Group Annuity Policy MD Stable Income Fund to another insurer). That transfer will be made in accordance with the Policy, which may be amended from time to time. Once such transfer takes place, you understand and agree that MD Life Insurance Company is released of all liability to you under Group Savings Policy GA-485 and/or the Group Annuity Policy MD Stable Income Fund for any matter occurring on or after the date of the transfer.

For MDRIF account holders

When you complete an application for an MD Retirement Income Fund, you apply to us for a retirement income fund in accordance with the Declaration of Trust for the MDRIF, the Income Tax Act (Canada) and any applicable provincial legislation. Any investments held for an MDRIF are also governed by the terms and conditions in the MDRIF Declaration of Trust. If there is a conflict between provisions here and the Declaration of Trust, the Declaration of Trust applies. You appoint us your agent for the purposes of appointing a trustee and instructing such appointed trustee to act as trustee for the MDRIF. We will use the money in your MDRIF to buy investment products according to your instructions.

If you designate a beneficiary for your MDRIF, you are also thereby designating a beneficiary for any interest your Fund may have in Group Savings Policy GA-485 (MD Income Fund) and/or the Group Annuity Policy MD Stable Income Fund at the time of your death.

You appoint us to act as your agent on your behalf and for your sole benefit to do what we consider necessary, including the execution of insurance contracts with the designated insurer, MD Life Insurance Company, or others to transfer all or part of the funds held in connection with Group Savings Policy GA-485 (MD Income Fund) and/or the Group Annuity Policy MD Stable Income Fund to another insurer. That transfer will be made in accordance with the Policy, which may be amended from time to time. Once such a transfer takes place, you understand and agree that MD Life Insurance Company is released of all liability to you under Group Savings Policy GA-485 and/or the Group Annuity Policy MD Stable Income Fund for any matter occurring on or after the date of the transfer.

For MDRESP account holders

When you complete an MD Registered Education Savings Plan application, you apply to us for an education savings plan in accordance with the Declaration of Trust for the MDRESP, the Income Tax Act (Canada) and any applicable provincial legislation. Any investments held for an MDRESP are also governed by the terms and conditions in the MDRESP Declaration of Trust. If there is a conflict between provisions here and the Declaration of Trust, the Declaration of Trust applies.

You appoint us your agent for the purpose of appointing a trustee and instructing such appointed trustee to act as trustee for the RESP. We will use the money in your MDRESP to buy investment products according to your instructions.

You appoint us to act as your agent on your behalf and for your sole benefit to do what we consider necessary.

For pre-established fund allocations for your RESP grant, you will receive the Fund Facts document for your first purchase only. Once a year, you will receive a notice with information about obtaining more recent Fund Facts, which are available at md.ca.

For TFSA account holders

When you complete a TFSA application, you apply to us for a tax-free savings account in accordance with the TFSA Declaration of Trust, the Income Tax Act (Canada) and any applicable provincial legislation. You appoint us your agent for the purpose of appointing a trustee and instructing such appointed trustee to act as trustee for your account. We will use the money in your account to buy investment products according to your instructions. Any investments held for a TFSA are also governed by the terms and conditions of the Declaration of Trust. If there is a conflict between provisions here and the Declaration of Trust, the Declaration of Trust applies.

It is possible to maintain the tax-free status of earnings if your spouse/common-law partner is named as the successor TFSA account holder. Alternatively, the assets of the deceased’s TFSA can be transferred to the TFSA of the surviving spouse or common-law partner without any impact on the survivor’s existing contribution room.

If a spouse or common-law partner is not the beneficiary of the TFSA, then earnings that accrue in the TFSA account after the account holder’s death will be taxable, while those that accrued before death remain exempt.

For joint account holders

You are jointly and severally liable (and in the province of Quebec, your obligations are solidary) with respect to any debt you may owe on your account. We will consider that any notice we provide to one of you is provided to all of you. You agree that, if any joint account holder dies, we will treat the surviving account holder(s) as the owner(s) of the assets in the account, and we are not responsible for the proper distribution of such assets.

We will act upon instructions from any one of you, unless you tell us in the application form that we are to act only upon the instructions of both or all of you.

For U.S. residents

MD can continue to deal with the registered accounts (RRSPs and RRIFs) of clients who have moved, either temporarily or permanently, to the United States, provided the client is residing in a U.S. state that has enacted regulatory exemptions for MD. Clients must have a pre-existing bona fide relationship with MD prior to their move to the United States. If you have any questions, please contact your MD Advisor, or MD Client Services at 1 800 267-2332.

Telephone orders

You may use the telephone to tell us to buy or sell investment products. You agree that:

• your telephone instructions will be as binding on us and you as though they were written and signed by you;
• telephone calls may be recorded and you consent to have the call recorded;
• we may take telephone instructions from anyone who appears to be authorized to transact on your account, according to our records.

You cannot transact by telephone if you are one of the holders of an account wherein instructions must be given by persons acting jointly.

Online orders

You may use My MD via md.ca to tell us to buy and sell investment products. You agree that:

• your online instructions will be binding on us and you as though they were written and signed by you;
• we may take online instructions from anyone who appears to be authorized to transact on your account, according to our records;
• availability of this service is offered on a best efforts basis;
• you agree to keep your password(s) confidential, to not disclose your password(s) to any other person and to keep your password(s) separate from any other information you will receive, or you already possess, concerning the services;
• we may reject an order to buy securities if the order does not meet your stated account objectives and the risk profile you have established.

You cannot transact online if you are one of the holders of an account wherein instructions must be given by persons acting jointly.

No transaction orders will be accepted via email.

Foreign currency conversion policy

When a client requests funds to be transferred electronically outside of Canada, the client must inform MD whether or not to convert the funds to the national currency of the country in which the receiving institution is located.

All reasonable steps will be taken by MD to determine with clients whether or not the currency is to be converted. Should MD be unable to obtain explicit confirmation from clients, however, the funds will be sent in Canadian currency.

Payments to third parties

Except where account type and structure dictate it, or where legal requirements demand it, or where it has been approved by senior management, MD will not accept any new instructions to make payments to anyone other than the individual(s) or entity(ies) whose name(s) appear(s) on the MD accounts. Requests to make payments to third parties will not be accepted, except in the instances outlined above.

Pre-authorized contributions

A pre-authorized contribution (PAC) plan can be established to make regular contributions to selected MD Funds. With a PAC, your bank account will be debited automatically on the day of the contribution.

If you have authorized us to electronically debit or credit your bank account, which includes starting a PAC, you warrant that everyone who has signing authority on your account has signed the application to authorize withdrawals from, and deposits to, the account. By giving us this authorization, you have also, in effect, given authorization to the financial institution indicated on the application. You may revoke this authorization at any time. In doing so, you must inform us and your financial institution, in writing, a minimum of two business days prior to the date you want to terminate your PAC or terminate your authorization to electronically debit or credit your bank account.

Your financial institution may need longer notice before the termination can take effect.

If you revoke this authorization, it has no bearing on any existing contract for goods or services between you and us. Your authorization applies only to the method of payment.

You are solely responsible for any service fees your bank may charge for electronic debit or credit operations.

You must inform us, in writing, of any change in the bank account information provided in this authorization a minimum of two business days prior to the next preauthorized withdrawal date. Your financial institution may require longer notice before the changes take effect. Your financial institution is not required to ensure that withdrawals are made according to the particulars of this authorization, including the amount or frequency of payments. You acknowledge that your financial institution is not required to verify that we are fulfilling any particular purpose with these pre-authorized payments as a condition toward honouring a pre-authorized withdrawal issued or caused to be issued by us on your account.

A pre-authorized debit may be disputed if:

1. an authorization was never provided to us; or
2. the debit was not made according to this authorization; e.g., if we failed to provide prior notification in case of variable amounts; or
3. the debit was posted to the wrong account because we supplied invalid or incorrect information.

If you want to be reimbursed, you must present a signed declaration that a), b) or c) took place to the financial institution that you indicated in your application. Your financial institution will, up to 90 days after the item in dispute was posted to your account, immediately reimburse the amount to you.

If it is after 90 days, you agree that a claim on the basis that this authorization was revoked, or for any other reason, must be resolved solely between you and us.

A bank account includes an account opened to deposit and withdraw money with a member of Payments Canada.

To obtain more information about your right to cancel, or your recourse rights, such as the right to receive reimbursement for any debit that is not authorized or is inconsistent with the terms of transaction forms related to PACs or systematic withdrawal plans (SWPs), please contact your MD Advisor, or the MD Trade Centre at 1 800 267-2332, or visit the Payments Canada website at https://payments.ca.

If you have a PAC, you will receive the Fund Facts document for your first purchase of a mutual fund only. Once a year, you will receive a notice with information about how to obtain the most recent Fund Facts. You can view all MD Fund Facts at md.ca, or you can request the most recently filed Fund Facts document at any time by contacting your MD Advisor or calling the MD Trade Centre at 1 800 267-2332.

You can terminate your recurring purchases at any time, and you continue to have a right of action for rescission or for damages if there is a misrepresen tation in the prospectus or any document incorporated by reference into the prospectus such as the Fund Facts. However, you have the right of withdrawal (i.e., the right to withdraw from the purchase agreement within two business days after receiving the Fund Facts) for your first purchase only; you do not have this right for subsequent purchases of a security of a mutual fund under a PAC.

MD treats as PACs any pre-authorized contributions in any account type and default allocations in RESP and group RSP accounts.

Systematic withdrawals

You can set up a systematic withdrawal plan (SWP), under which shares or units of your mutual funds are redeemed on a regular basis, to provide you with an income. The following terms and conditions apply only to SWPs involving MD mutual funds:

• We will transfer the proceeds to your bank account within two business days of the settlement of the redemption.
• If you have not indicated a termination date on the Transaction Request Form, the SWP will remain in effect until the holdings from which the plan is withdrawing are depleted. You can change your SWP at any time by using a Transaction Request Form, by calling the MD Trade Centre at 1 800 267-2332, or by logging in to My MD.

Investments in MD Stable Income Fund

MD does not sell life insurance products, but some MD Advisors are also licensed insurance agents with Scotia Wealth Insurance Services Inc., a registered insurance agency that is affiliated with MD (the Insurance Agency). MD Advisors who are also licensed insurance agents may distribute MD Stable Income Fund, which is a Group Annuity Product of MD Life Insurance Company (MD Life), a licensed insurance company. Information about MD Stable Income Fund can be found on md.ca or by contacting your MD Advisor or calling the MD Trade Centre at 1 800 267-2332.

MD Stable Income Fund is not a mutual fund. It is a segregated group annuity policy, issued by MD Life. Important information about this product, including potential restrictions or adjustments to redemptions, can be found in the MD Stable Income Fund Group Annuity Policy Certificate, which can be obtained by contacting the MD Trade Centre at 1 800 267-2332 or online at  md.ca. Please read it carefully before purchasing.

MD Life is a subsidiary of MD Financial Management Inc. and is affiliated with the Insurance Agency, which is a subsidiary of Scotia Capital Inc. Both MD Financial Management Inc. and Scotia Capital Inc. are wholly owned subsidiaries of The Bank of Nova Scotia.

Insurance products

Financial Consultants (and their administrative assistants) who distribute insurance products through the Insurance Agency (the Insurance Advisors) are licensed to do so in each applicable province. Insurance Advisors may make referrals to the Insurance Agency. Where Insurance Advisors are dual-licensed through MD, MD Life and the Insurance Agency delegate the monitoring of conflicts to MD. MD Financial Management^[1] considers that these relationships do not give rise to conflicts of interest and are not prejudicial to our clients. The Insurance Agency and the companies referred to herein are affiliates, working together toward the common objective of better serving the financial needs of our clients.

Guaranteed term deposits

The following is a summary of the terms and conditions that generally apply to term deposits or guaranteed investment certificates (GICs) available through MD (known collectively as guaranteed term deposits). A more complete list of the terms and conditions specific to the guaranteed term deposit you have purchased is available upon request. In case of conflict or inconsistency between these terms and conditions and those that are specific to a given guaranteed term deposit, the terms and conditions that are specific to a given guaranteed term deposit apply.

If you purchase a guaranteed term deposit from one of the financial institutions that MD deals with (individually referred to as an Institution), you are making a deposit with the Institution. The Institution promises the repayment of the principal amount of your deposit, in lawful money of Canada, to you on the maturity date of the deposit. The Institution also promises the payment of interest at the agreed rate and frequency from the effective date of the deposit to its maturity date. After the maturity date, no interest shall accrue or become payable on the principal amount of the deposit. All interest payments for a deposit will be forwarded to us on your behalf, and we will deal with such payments in accordance with your instructions.

The Institution will not repay the principal amount of the deposit before maturity, except in the event of your death, or otherwise at the discretion and under the conditions set by the Institution from time to time. At maturity, the Institution will forward the principal value of the deposit, together with any interest owing to us, on your behalf, and we will deal with such payments in accordance with your instructions.

Unless agreed to by the Institution, any certificate issued as evidence of your deposit is not negotiable, and your rights and the obligations of the Institution cannot be assigned or transferred by you.

Should a deposit be held by more than one owner, the receipt by any owner whose name appears in the records of the Institution or by the duly authorized agent or mandatary of any such owner shall be a sufficient discharge for all, whatsoever, in connection with the monies so paid. Upon satisfactory proof of the death of one joint owner, the Institution may treat the surviving joint owners as the owners of the deposit.

If you do not provide us with instructions concerning the renewal of your guaranteed term deposit prior to its maturity date, the principal, together with any interest owed at that time, will be credited to your account’s cash position.

All Institutions are members of the Canada Deposit Insurance Corporation or a provincial equivalent and all of the guaranteed term deposits available through us are, subject to certain limits, insured deposits under the Canada Deposit Insurance Act or applicable provincial legislation. You assume final responsibility for ensuring that any deposit you own enjoys the maximum insurance coverage prescribed by law.

Dividends/distributions/interest (for MD mutual funds)

All dividends/distributions paid by an MD mutual fund will be reinvested in the fund in which they are earned, unless you choose to distribute to the cash position within the account in which they are earned.

Resolving debit balances

Resolving cash deficits means returning your account to its position before the deficit occurred.

In the event that a cash deficit occurs in your account, MD will make two attempts to contact you by phone to resolve the issue before the 20th business day (from the date the cash deficit occurred). If the deficit remains outstanding, MD has the right to determine which property to select and to sell such property to cover any outstanding cash deficit, including interest, in your account. If you hold a registered retirement income fund (RRIF) account, MD has the right to stop any automatic payments that have a cash deficit due to insufficient allocations. Should no new allocations be received before year-end, MD will make the minimum annual RRIF payment in December of the current year and then follow the procedure noted above to resolve the cash deficit. If there is no property within your account to sell and cover the deficit, activity in your account will be restricted until the deficit is resolved. If you have any questions regarding debit balances or the procedure described above to resolve them, please contact your MD Advisor.

Fees and commissions

No commission is charged in MD Plus accounts. Instead, fees are charged quarterly and are calculated as a percentage of the value of your assets.

Fees and commissions may apply to mutual funds, bonds and equities held in your commission-based advisory account.

A $135 fee (plus GST) will be charged for each registered and non-registered plan that is transferred, in whole or in part, to another financial institution. A schedule of all fees and commissions may be obtained by calling the MD Trade Centre at 1 800 267-2332, contacting your MD Advisor, or by visiting md.ca.

Termination of services

Any accounts with a $0 balance, no holdings, and no transactions for 24 months or more will be closed.

An account may be terminated by you or us, upon written notice by one party to the other. Written notice provided by us will include a minimum period of 30 days’ notice. In the case where the notice of termination is made by you, you must be the sole registered owner of the account. In cases where the account is a jointly held account, written notice of termination is required to be provided by both account holders. In all cases, termination of an account shall be effective immediately upon the expiry of the notice period as set out in the written notice.

In cases where a party is in material breach of the terms and conditions of the account agreement, the other party may terminate an account immediately by providing written notice to the other of the immediate termination and reason for such termination.

Upon termination of an account (whether immediate or upon the expiry of a notice period), any and all payments owing from you to us, or delivery of the account(s) and the securities held within them to you by us, shall occur immediately and in any case within a reasonable period of time following termination of the account.

Upon termination of an account, we shall, without further act or formality, be released from all obligations and liabilities arising under the account agreement and as set out in this MD account guide except for any delivery of the account(s) securities or cash held within such, any reporting matters required for tax purposes, if applicable, and except for any liability arising from the negligence or misconduct by us as occurring prior to termination of the account.

Death, disability, or physical or mental incompetence will not automatically terminate or change the terms of the account agreement or the terms set out herein as are in place at the time of the death, disability, or physical or mental incompetency. If not prohibited by law, your personal representative, guardian, committee, attorneyin-fact or other authorized representative may agree to amend the terms of the account agreement, or terminate the agreement.

In the event an account is terminated, howsoever that may arise, we shall have full right and authority to sell all securities as then held by you in your MD account(s) as of the effective date of the termination of services, to cash, while awaiting client instructions on where such cash and account(s) are to be transferred.

MD Advisor compensation

MD Advisors are compensated through a combination of salary and bonus. Bonuses are driven by many components, such as professional practice standards, sales targets and client satisfaction. No MD Advisor compensation, however, is generated directly from commissions, including on insurance product sales.

MD Advisors may, from time to time, participate in internal promotional events relating to the sale of products. Nominal rewards may be earned. These rewards are structured to ensure that they do not influence the recommendations made to you.

MD Advisors may make referrals to other MD Financial Management affiliates for other financial products or services, and to Scotiabank for banking products, as appropriate. They do not receive referral fees, but referrals are considered in determining salary and bonuses. Scotiabank does not pay a bonus to MD Advisors based on referrals for banking products. Please see Conflicts of Interest Disclosure for more information about Advisor compensation and referrals.

Protecting your privacy:  our ongoing commitment

Safeguarding your privacy and protecting your personal and financial information are fundamental to the way we do business with you. MD Financial Management Inc.’s Privacy Agreement describes our current information management practices and confirms our commitment to comply with the federal government’s Personal Information Protection and Electronic Documents Act (PIPEDA) to meet your specific needs and expectations as one of our clients. If you would like to change any of your personal information, or if you would like a copy of the complete MD Financial Management Inc. Privacy Agreement, please call the MD Trade Centre at 1 800 267-2332, contact your MD Advisor, or visit md.ca.

Shared premises

MD may share premises with another financial services entity within the MD Financial Management and Scotiabank group. MD offices may be shared with the companies listed below. All of these companies operate as subsidiaries or affiliates (direct and indirect) of MD Financial Management Inc. and carry on the following businesses:

• MD Financial Management Inc. is the manager and trustee of the mutual funds known as the MD Funds, and the MDPIM Pools. MD Financial Management retains and supervises investment advisors to the MD Funds and MDPIM Pools, is responsible for all regulatory requirements relating to the funds, and provides discretionary portfolio management services.
• Estate and trust services are provided by The Bank of Nova Scotia Trust Company (Scotiatrust®). MD clients may be referred to Estate and Trust Consultants to support their estate planning and trust needs.
• The Insurance Agency is the distributor of MD Life’s insurance products, and the products of select independent third-party Canadian life insurance companies to MD clients or other qualified persons.
• Although not affiliates within the MD Group of Companies, certain provincial and territorial medical associations may distribute insurance products and services to their members and other sponsored clients.
• MD is a wholly owned subsidiary of MD Financial Management Inc., which is a wholly owned indirect subsidiary of Scotiabank. Scotiabank is a publicly traded company, listed on the Toronto Stock Exchange.