Account Statement Disclosure Respecting MFDA IPC Coverage
MFDA Staff Notices are intended to assist Members and their Approved Persons in the interpretation, application of and compliance with requirements under MFDA By-laws and Rules. Notices make reference to these requirements and set out MFDA staff’s interpretation of how to comply with these requirements. Notices may also include best practices or guidance.
CIPF and MFDA IPC have Merged
The Canadian Investor Protection Fund (CIPF) and the MFDA Investor Protection Corporation (MFDA IPC) became one entity on January 1, 2023. Please see www.cipf.ca for information about coverage and member firms.
More information about this initiative led by the Canadian Securities Administrators (CSA) can be found at CSA Staff Notice of Approval 25-308 Approval and Acceptance of Canadian Investor Protection Fund.
Under MFDA Rule 5.3.2(e), each account statement must include disclosure, as prescribed by the Rule, respecting MFDA Investor Protection Corporation (“IPC”) coverage. The Board of the MFDA IPC has approved the following wording for the purpose of satisfying disclosure requirements under the proposed Rule:
“Customers’ accounts are protected by the MFDA Investor Protection Corporation (“IPC”) within specific limits. Customers with accounts in Quebec are generally not covered by the IPC. Please refer to the IPC Coverage Policy on the website at www.mfda.ca/ipc for a description of the nature and limits of coverage, or contact the IPC at 1-866-243-6981.”
The above-noted disclosure will be required to be included on Member account statements as of July 15, 2015 when Rule 5.3.2(e) becomes effective.
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