The Mutual Fund Dealers Association of Canada (MFDA) has issued guidance on the forthcoming requirement that client account statements include notifications of contingency fund coverage.

The MFDA issued a staff notice Tuesday regarding its proposed rule that each account statement include disclosure about the coverage provided by the MFDA Investor Protection Corp. (IPC).

The notice, which aims to help dealers and reps comply with its rules, reports that the board of the MFDA IPC has approved specific wording for the purpose of satisfying the rule’s disclosure requirements.

That wording will require the disclosure to indicate to clients that their accounts are protected by the IPC “within specific limits”; and, that accounts in Quebec are generally not covered by the IPC.

The disclosure will be required to be included on account statements as of July 15, 2015, which is when the proposed rule is slated to become effective.