Securities regulators have approved the MFDA Investor Protection Corp. as a contingency fund for the fund dealer industry.

Both Saskatchewan and Nova Scotia have posted notices reporting the fund’s approval in Alberta, BC and Ontario, too. “The MFDA IPC will provide protection to eligible customers of MFDA members on a discretionary basis to prescribed limits if securities, cash and other property held by any such member are unavailable as a result of the member’s insolvency,” notes the Saskatchewan Financial Services Commission.

The Nova Scotia Securities Commission reports that the MFDA IPC intends to commence coverage of customer accounts on July 1.

The NSSC also notes that registered mutual fund dealers in Nova Scotia that are participants in a provincial contingency trust fund and will continue to participate until it is wound up. Mutual fund dealers that are registered after the MFDA IPC takes effect will not be required to participate in the provincial contingency trust fund.