BCN 2008/46 - Publication of the Memorandum of Understanding regarding CIPF and a Variation Order Approving the Canadian Investor Protection Fund as a Compensation Fund [BCN]
The Commission is publishing an amended memorandum of understanding between the Canadian Investor Protection Fund (CIPF) and the Canadian Securities Administrators (CSA) (the MOU) and an order of the Executive Director varying the existing order approving the CIPF as a compensation fund (the variation order). Both the MOU and the variation order are effective today.
The CIPF and the Investment Industry Regulatory Organization of Canada (IIROC, formerly, the Investment Dealers Association) jointly applied to amend the memorandum of understanding between the CIPF and the CSA and the order approving the CIPF as a compensation fund. The purpose of the amendments is to reflect the realignment of the regulatory roles and responsibilities between the CIPF and the IIROC. We published the joint application and corresponding materials for comment on March 7, 2008.
The realignment means that the CIPF will focus on its primary functions of risk management, administration of member insolvencies, and payment of customer losses. The amendments also reflect the fact that, since the member regulation functions formerly performed by various stock exchanges are now consolidated in IIROC, there is no longer a need for the CIPF to have an oversight role to ensure consistency. As well, the MOU and the variation order are now more consistent with our approaches to other regulated entities.
You may refer questions to:
Senior Legal Counsel, Legal Services
Capital Markets Regulation
British Columbia Securities Commission
Tel: 604 899 6678 or 1-800-373-6393 (in BC and Alberta)
September 30, 2008
Douglas M. Hyndman
Ref: 2008 BCSECCOM 526
This Notice may refer to other documents. These documents can be found at the B.C. Securities Commission public website atwww.bcsc.bc.ca in the section Securities Law & Policy: Policies & Instruments.