CDIC and CIPF Sign Memorandum of Understanding
OTTAWA – October 30, 2017 – The Canada Deposit Insurance Corporation (CDIC) and the Canadian Investor Protection Fund (CIPF) have signed a Memorandum of Understanding (MOU) that will allow them to better protect depositors and investors through enhanced collaboration in the event a CDIC member institution or a connected CIPF member firm encounters serious financial difficulties.
Under the MOU, CDIC and CIPF have agreed to strengthen their consultation, cooperation and exchange of information with respect to the crisis management and resolution of a CDIC member institution connected to a CIPF investment firm.
“The agreement with CIPF will help minimize loss and continue to protect the deposits of Canadians,” said Michèle Bourque, President and CEO of CDIC.
“This collaboration enables us to work effectively and efficiently to manage the orderly resolution of a financial firm in the unlikely event of a failure.”
“By strengthening cooperation and information sharing between CIPF and CDIC, the MOU supports our respective mandates to protect investors and depositors across Canada,” said Rozanne E. Reszel, President and CEO of CIPF. “This partnership helps ensure that when a financial group includes both deposit taking and investment firms, CDIC and CIPF have the means to coordinate effectively and act quickly to protect depositors and investors.”
This MOU follows similar agreements CDIC has established with other financial regulators to improve cooperation, information sharing and resolution planning. CDIC will continue to work with domestic and international counterparts to strengthen partnerships and coordination for deposit protection.
CDIC is a federal Crown corporation established in 1967 to protect the savings of Canadians, and CDIC contributes to financial stability by safeguarding over $770 billion in deposits. As resolution authority, CDIC is responsible for handling the failure of any of its members, from the smallest to the largest. CDIC’s members include banks, federally regulated credit unions as well as loan and trust companies and associations governed by the Cooperative Credit Associations Act that take deposits. CDIC is funded by premiums paid by member institutions and do not receive public funds to operate.
CIPF is the only compensation fund approved by the Canadian Securities Administrators for investment dealers regulated by the Investment Industry Regulatory Organization of Canada (IIROC). CIPF’s mandate is to provide protection if property being held by a CIPF member firm on behalf of an eligible customer is not returned to the customer following the firm’s insolvency. CIPF is funded by IIROC-regulated investment dealers, and all IIROC investment dealers are CIPF members.
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Canada Deposit Insurance Corporation
Director, Communications and Public Affairs
Canadian Investor Protection Fund
Vice-President & Corporate Secretary