Compensation and contingency funds of a self-regulatory organization
The Securities Act provides FCNB with the power to enter into an agreement, memorandum of understanding or arrangement that relates to the compensation and contingency fund of a self-regulatory organization.
There are currently two investor protection funds recognized by FCNB:
Canadian Investor Protection Fund
The Canadian Investor Protection Fund (CIPF) is the only compensation fund approved by the Canadian Securities Administrators (CSA) for investment dealers regulated by the Investment Industry Regulatory Organization of Canada (IIROC). CIPF is funded by IIROC-regulated Dealer Members and all IIROC Dealer Members.
CIPF’s role in the Canadian regulatory system is governed by the following agreements:
- 30 September 2008: A Memorandum of Understanding (MOU) with the CSA that addresses the governance, funding and maintenance of CIPF as well as CIPF’s responsibilities for investor protection and reporting to the CSA. As provided for by securities laws and regulations in many Canadian provinces and territories, certain regulators, such as FCNB, have also issued Approval Orders regarding CIPF;