Canadian Investor Protection Fund
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Key MFDA IPC Documents (Pre-Merger)
As of January 1, 2023, the former Canadian Investor Protection Fund (Former CIPF) and the MFDA Investor Protection Corporation (MFDA IPC) were amalgamated to form a new investor protection fund: the Canadian Investor Protection Fund (CIPF)/Fonds canadien de protection des investisseurs (FCPI).
Below are some key information and documents about the MFDA IPC.
MFDA Investor Protection Corporation
MFDA Investor Protection Corporation (the “MFDA IPC”) was a not-for-profit corporation established by the Mutual Fund Dealers Association of Canada (“MFDA”) to administer an investor protection fund (“Fund”) for the benefit of clients of mutual fund dealers that are members of the MFDA (“Member Firms”). The Fund protected client assets held by a Member Firm in the event that the Member Firm becomes insolvent.
The MFDA was the sole self-regulatory organization that was the sponsor of the MFDA IPC. The MFDA IPC began offering coverage on July 1, 2005. The MFDA IPC operated in all provinces except Quebec, which has its own compensation fund.
MFDA IPC Coverage
The MFDA IPC covered customers who incur losses as a result of the insolvency of an MFDA Member Firm. Loss of customer assets may take the form of shortfalls in the amount and type of assets which are held by the Member Firm at the time of insolvency. The MFDA IPC’s objective was to return assets to customers or compensate customers when the assets were not available because the Member Firm has become insolvent.
Coverage was available in the amount of up to $1 million for each of a customer’s general and separate accounts. Most customers will have two “accounts” for coverage purposes, the aggregate of their trading accounts (general account) and the aggregate of their registered retirement accounts, such as RRSPs and RIFs (separate account). Securities, cash and other property of the customer that were unavailable due to the insolvency of the Member Firm were covered by the MFDA IPC.
Customer losses which do not result from the insolvency of a Member Firm such as losses that result from changing market value of securities, unsuitable investments or the default of an issuer of securities, were not covered.
The MFDA IPC’s coverage of losses sustained by customers of insolvent Member Firms was within the discretion of the MFDA IPC. The Coverage Policy had been adopted to define the way in which the MFDA IPC used its discretion to determine whether a customer is eligible for protection and the amount of that protection, which is available here:
Frequently Asked Questions and Answers on the MFDA Investor Protection Corporation Coverage
Annual Reports
CSA Approval Orders
In May 2005, the MFDA Investor Protection Corporation (“the MFDA IPC”) was recognized by the securities commissions in British Columbia, Alberta, Saskatchewan, Ontario, New Brunswick and Nova Scotia as a compensation fund for customers of mutual fund dealers that are Members of the MFDA.
Notices of securities commission approval and approval orders can be found by selecting the relevant link(s) below.
Alberta
- Approval Order and Schedule A – Terms and Conditions and Schedule B – Reporting Requirements (January 1, 2021)
British Columbia
- Approval Order and Schedule A – Terms and Conditions and Schedule B – Reporting Requirements (January 1, 2021)
Saskatchewan
- Approval Order and Schedule A – Terms and Conditions and Schedule B – Reporting Requirements (January 1, 2021)
Manitoba
- Approval Order and Schedule A – Terms and Conditions and Schedule B – Reporting Requirements (January 1, 2021)
Ontario
- Approval Order and Schedule A – Terms and Conditions and Schedule B – Reporting Requirements (January 1, 2021)
New Brunswick
- Approval Order and Schedule A – Terms and Conditions and Schedule B – Reporting Requirements (January 1, 2021)
Nova Scotia
- Approval Order and Schedule A – Terms and Conditions and Schedule B – Reporting Requirements (January 1, 2021)
Prince Edward Island
- Approval Order and Schedule A – Terms and Conditions and Schedule B – Reporting Requirements (January 1, 2021)
Northwest Territories
- Approval Order and Schedule A – Terms and Conditions and Schedule B – Reporting Requirements (January 1, 2021)
Yukon Territory
- Approval Order and Schedule A – Terms and Conditions and Schedule B – Reporting Requirements (January 1, 2021)
Nunavut
- Approval Order and Schedule A – Terms and Conditions and Schedule B – Reporting Requirements (April 1, 2021)
Previous notices of securities commissions’ and legacy Approval Orders and the MFDA IPC’s CSA application can be found below.
Application for CSA Approval
The OSC published the MFDA IPC’s revised application for approval as a compensation fund in the Ontario Securities Commission Bulletin on February 25, 2005 ((2005) 28 OSCB 2067).
The following documents in pdf format refer to the MFDA IPC Application for Approval:
- OSC Notice
- Notice and Request for Comment – Revised Application for Approval
- Application letter to the CSA
- Exhibit A – Letters Patent
- Exhibit B – Draft By-Law No. 1
- Exhibit C – Draft Coverage Policy
- Exhibit D – Proposed Amendments to MFDA Rule 2.7
- Exhibit E – Draft Advertising Policy – Disclosure of Member Coverage
- Draft Approval Order – Revised
- Summary of Public Comments Respecting Initial Application for Approval of MFDA Investor Protection Corporation and Response of the MFDA and MFDA IPC (November 2002).
Legacy Approval Orders
In May 2005, the MFDA Investor Protection Corporation (“the MFDA IPC”) was recognized by the securities commissions in British Columbia, Alberta, Saskatchewan, Ontario, New Brunswick and Nova Scotia as a compensation fund for customers of mutual fund dealers that are Members of the MFDA.
Notices of securities commission approval and approval orders can be found by selecting the relevant link(s) below.
Alberta
- Approval Order and Schedule A – Terms and Conditions (April 30, 2015)
British Columbia
- Variation Order and Schedule A – Terms and Conditions (April 30, 2015)
Saskatchewan
- General Ruling Order 11-905 and Schedule A – Terms and Conditions (April 30, 2015)
Ontario
- Approval Order and Schedule A – Terms and Conditions (April 30, 2015)
New Brunswick
- Approval Order and Schedule A – Terms and Conditions (April 14, 2015)
Nova Scotia
- Approval Order and Schedule A – Terms and Conditions (April 30, 2015)
MFDA IPC Privacy Policy
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