The MFDA Investor Protection Corporation ("IPC") is a not-for-profit corporation incorporated by Letters Patent on November 14, 2002 under Part II of the Canada Corporations Act. It is a separate legal entity from the MFDA.
The MFDA IPC provides protection to eligible customers of MFDA Members on a discretionary basis to prescribed limits if securities, cash and other property held by any such Member are unavailable as a result of the Member's insolvency. Coverage of customer accounts commenced on July 1, 2005.
| MFDA IPC Coverage Policy |
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The MFDA and MFDA IPC have prepared a brochure describing IPC coverage. Should a Member firm wish to provide information to clients with respect to IPC coverage, the Member must use this brochure as the sole manner of communication.
| MFDA IPC Brochure |
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| MFDA IPC Claims Procedures |
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The terms and conditions of the approval orders of the MFDA IPC required that a Working Group, consisting of representatives of the MFDA IPC, the MFDA and MFDA Members, be established, with members of the CSA participating as observers. The Working Group was established in October 2005 and undertook to review a number of aspects of the MFDA IPC. The Report and Response, available here, are the results of that process.
| MFDA IPC Working Group Report, MFDA IPC Board of Directors' Response and Related Bulletins |
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IPC Issues Committee
In March 2010, the MFDA Board of Directors established an ad hoc committee to (i) consider the MFDA Investor Protection Corporation's proposal to increase the target size of its fund from $30 million to $50 million; (ii) consider other IPC issues such as the assessment calculation; and (iii) outline a strategy to communicate to and consult with the MFDA membership. The IPC Issues Committee has since made a number of recommendations (see Bulletin #0437-M) and Members are invited to comment on those recommendations by September 1, 2010. The following comment letters have been received to date:
The Committee's final recommendations will be presented to the Board on September 30, 2010.
The Committee held an information session for Members on July 15, 2010 at the St. Andrew's Club and Conference Centre in Toronto, Ontario (click here for Minutes of the Meeting) and met with members of IFIC and the Federation of Mutual Fund Dealers on July 28, 2010 at the offices of IFIC in Toronto, Ontario (click here for Minutes of the Meeting).
