TORONTO, Nov. 4, 2011 /CNW/ - The Investment Industry Regulatory
Organization of Canada (IIROC) and the Canadian Investor Protection
Fund (CIPF) announced today that CIPF has obtained a bankruptcy order in Canada
for MF Global Canada Co. and that KPMG Inc. has been appointed trustee
The order is designed to ensure the fair and orderly management of
customer accounts and the financial affairs of MF Global Canada Co.
pursuant to Part XII of the Bankruptcy and Insolvency Act (Canada). Part XII sets out a
simple and fair process for dealing with securities firm bankruptcies.
IIROC and CIPF are committed to taking available measures to protect the
interests of all MF Global Canada Co. customers and to preserve account
value in an expedited manner.
KPMG, in consultation with CIPF and with the cooperation of IIROC, MF
Global Canada Co. and third-party organizations, which include clearing
organizations and custodians, will work to verify all customer accounts
and to determine the financial position of the firm. Based on
preliminary investigations, all MF Global Canada Co. customer assets
are currently accounted for.
On Oct. 31, 2011, MF Global Holdings Ltd., the parent company of MF
Global Canada Co., filed for bankruptcy in the United States. In a
related development on Nov. 1, IIROC suspended MF Global Canada Co. as
a Dealer Member of IIROC. MF Global Canada Co. consented to the
suspension on the basis of being capital deficient. The bankruptcy
order secured today by CIPF was consented to by MF Global Canada Co.
The bankruptcy order obtained by CIPF is similar to proceedings relating
to MF Global Canada Co.'s U.S. affiliates initiated by the Securities
Investor Protection Corporation, CIPF's customer compensation
counterpart in the United States.
Information about the bankruptcy of MF Global Canada Co. can be accessed
on the KPMG CreditorLinks website. Contact information for KPMG is also available on KPMG's website: www.kpmg.ca.
Canadian Investor Protection Fund (CIPF) - CIPF was established by the investment industry to protect investors.
CIPF's mandate is to ensure, within defined limits, that the cash and
securities belonging to eligible customers of Canadian investment
dealers are returned to them in the event of the insolvency of a CIPF
Member. Claims that are eligible for coverage are normally settled by
ensuring that the trustee has sufficient assets to transfer the
customer accounts to another Member.
A limit has been placed by CIPF on the coverage provided for a
customer's General Account, and each Separate Account (described in the
CIPF Coverage Policy available on CIPF's website), equal to $1 million
CDN for losses of securities, commodity and futures contracts,
segregated insurance funds and cash.
CIPF is the only compensation fund approved by the Canadian Securities
Administrators for Dealer Members of the Investment Industry Regulatory
Organization (IIROC) and all IIROC Dealer Members are CIPF Members.
Since 1969, there have been 17 insolvencies of CIPF Members. All
eligible customers have had their assets returned to them by CIPF.
For more information visit www.cipf.ca or telephone 416 866 8366 Toll-free 1 866 243 6981. E-mail: firstname.lastname@example.org
Investment Industry Regulatory Organization of Canada (IIROC) - IIROC investigates possible misconduct by its member firms and/or
individual registrants. It can bring disciplinary proceedings which may
result in penalties including fines, suspensions and permanent bans or
terminations for individuals and firms.
All information about disciplinary proceedings relating to current and
former member firms is available in the Enforcement section of the IIROC website. Background information regarding the
qualifications and disciplinary history, if any, of advisors currently
employed by IIROC-regulated firms is available free of charge through
the IIROC AdvisorReport service. Information on how to make investment dealer, advisor or
marketplace-related complaints is available by calling 1.877.442.4322.
IIROC is the national self-regulatory organization which oversees all
investment dealers and trading activity on debt and equity marketplaces
in Canada. Created in 2008 through the consolidation of the Investment
Dealers Association of Canada and Market Regulation Services Inc.,
IIROC sets high quality regulatory and investment industry standards,
protects investors and strengthens market integrity while maintaining
efficient and competitive capital markets.
IIROC carries out its regulatory responsibilities through setting and
enforcing rules regarding the proficiency, business and financial
conduct of dealer firms and their registered employees and through
setting and enforcing market integrity rules regarding trading activity
on Canadian equity marketplaces.
SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News
For further information:
| IIROC: || || || || || || || || CIPF: |
| Lucy Becker (Media Inquiries) |
Vice President, Public Affairs
Director, Public Affairs
| || || || || || || || Rozanne Reszel |
President and Chief Executive Officer
Vice President and Secretary