Friedberg Mercantile Group Ltd. and David Lakin - s. 4.1 of OSC Rule 31-502

Headnote

Registrant exempt from paragraph 2.1(3)(c) of Rule 31-502 - Proficiency Requirements for Registrants. Application of the provision, as drafted, is numerically impossible for firms with fewer than twenty registrants.

Rules Cited:

Ontario Securities Commission Rule 31-502 - Proficiency Requirements for Registrants, paragraph 2.1(3)(c).

IN THE MATTER OF

THE SECURITIES ACT,

R.S.O. 1990, CHAPTER S.5, AS AMENDED

AND

IN THE MATTER OF

FRIEDBERG MERCANTILE GROUP LTD. AND DAVID LAKIN

ORDER

(Section 4.1 of Rule 31-502)

WHEREAS the Director (the Director) has received an application from Friedberg Mercantile Group Ltd. (FMGL), on its own behalf and on behalf of David Lakin (Lakin), for an order pursuant to Section 4.1 of Rule 31-502 - Proficiency Requirements for Registrants (Rule 31-502) exempting Lakin from paragraph 2.1(3)(c) of Rule 31-502;

AND WHEREAS the Director has considered the application and the recommendation of staff of the Ontario Securities Commission;

AND WHEREAS FMGL has represented to the Director that:

1. FMGL is a corporation existing under the laws of Canada and having its head office in Toronto.

2. FMGL is registered under the Securities Act (Ontario) as a dealer in the category of Investment Dealer and under the Commodity Futures Act (Ontario) as a Futures Commission Merchant. FMGL is also a member firm of the Investment Dealers Association of Canada.

3. FMGL is sponsoring the application of Lakin as a salesperson whose registration is to be restricted to the sales of mutual fund securities.

4. Lakin does not satisfy the proficiency requirements contained in subsection 2.1(1) of Rule 31-502.

5. Since Lakin's registration will be restricted to the sale of mutual fund securities, and since Lakin has completed the Canadian Investment Funds Course, Lakin satisfies paragraphs 2.1(3)(a) and (b) of Rule 31-502, which sets out an exemption to the proficiency requirements contained in subsection 2.1(1) of Rule 31-502.

6. Lakin does not satisfy paragraph 2.1(3)(c) of Rule 31-502 because on the date Lakin is granted registration, FMGL will have registered with it more than the lesser of:

(a) 100 restricted representatives whose registration is restricted to the sale of mutual funds; and

(b) that number of restricted representatives whose registration is restricted to the sale of mutual funds equal to 5% of the total number of representatives registered with FMGL.

7. Numerically, no company with fewer than twenty representations in total can satisfy paragraph 2.1(3)(c) of Rule 31-502.

8. FMGL employs no other salesperson in Ontario whose registration is restricted to the sale of mutual fund securities, and it will employ, including Lakin, less than twenty representatives in total.

AND WHEREAS the Director is satisfied that it would not be prejudicial to the public interest to make the requested Order on the basis of the terms and conditions proposed;

IT IS HEREBY ORDERED by the Director pursuant to Section 4.1 of Rule 31-502 that Lakin be exempt from paragraph 2.1(3)(c) of Rule 3-502 until

(a) FMGL ceases to be registered in the category of investment dealer in the Province of Ontario; or

(b) Lakin ceases to be employed by FMGL.

February 14, 2005.

"David M. Gilkes"