BULLETIN #0286 – M
December 7, 2007
For Distribution to Relevant Parties within your Firm
Publication of MFDA IPC Working Group Report and MFDA IPC Board of
The MFDA Investor Protection Corporation (the “MFDA IPC”) has received the permission of
the Canadian Securities Administrators (the “CSA”) to publish the MFDA IPC Working Group
Report and Response to the Report by the MFDA IPC Board of Directors. Copies of the Report
and Response are attached to this Bulletin.
The MFDA IPC was established in 2002 and received the required approvals from the Alberta,
British Columbia, Manitoba, Nova Scotia, Ontario and Saskatchewan Securities Commissions in
May 2005. Coverage of clients’ accounts began July 1, 2005.
The terms and conditions of the approval orders of the MFDA IPC required that a Working
Group, consisting of representatives of the MFDA IPC, the MFDA and MFDA Members, be
established, with members of the CSA participating as observers. The Working Group was
established in October 2005 and undertook to review a number of aspects of the MFDA IPC,
including identification of risks of mutual fund dealer failures leading to investor losses,
appropriate fund size, types of products that should be covered, the appropriate coverage amount
per customer account, assessment methodology, long-term funding and risk management tools
required by the MFDA IPC. The attached Report and Response are the results of that process.