The OSC yesterday announced the winding up of Ontario Contingency Trust Fund, which provides limited compensation to clients of dealers that are unable to return funds or securities to clients. Ontario securities laws require every dealer that is registered under the Securities Act (Ontario) , other than an exempt market dealer, to participate in a compensation fund or contingency trust fund that has been approved by the OSC and that satisfies certain other requirements. Most of the current participants of the OCTF now participate in another approved compensation fund or are no longer registered.
Participants in the OCTF that remain registered and that are not members of IIROC or the MFDA may seek an exemption from the compensation fund participation requirement, and a simplified procedure for obtaining an exemption is provided in the notice.
For more information, see OSC Staff Notice 33-739.
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