BCN 2005/26 - MFDA Investor Protection Corporation Notice of Approval [BCN]
On May 13, 2005, the Executive Director approved the MFDA Investor Protection Corporation (MFDA IPC) as a compensation fund under section 23 of the Securities Rules. The MFDA IPC will provide 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. The MFDA IPC intends to commence coverage of customer accounts on July 1, 2005.
Alberta, Nova Scotia, Ontario and Saskatchewan have also approved the MFDA IPC as a compensation fund.
We published the revised application from the MFDA IPC on February 25, 2005 (BC Notice 2005/13). The MFDA IPC received 14 comments. The summary of comments and responses is available at the OSC website at www.osc.gov.on.ca.
Currently, British Columbia has its own contingency trust fund, which provides coverage to a maximum of $2,500 per claim. The Commission intends to wind-up the British Columbia contingency trust fund after the MFDA IPC is in place.
May 20, 2005
Acting Executive Director
This Notice may refer to other documents. These documents can be found at the B.C. Securities Commission public website at www.bcsc.bc.ca in the section Securities Law & Policy: Policies & Instruments.