Measures to protect MF Global Canada Co. customers

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 in bankruptcy.

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:  info@cipf.ca

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
416.943.5870
lbecker@iiroc.ca 

David Thomas
Director, Public Affairs
416.943.6921
dthomas@iiroc.ca
              Rozanne Reszel
President and Chief Executive Officer
416.643.7105
rreszel@cipf.ca 

Barbara Love
Vice President and Secretary
416.643.7106
blove@cipf.ca

 


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