The Canadian Investor Protection Fund and IIROC have obtained a bankruptcy order in Canada for MF Global Canada Co., with KPMG Inc. appointed trustee in bankruptcy.
The order is designed to ensure the fair and orderly management of customer accounts and the financial affairs of MF Global Canada Co. pursuant to Part XII of the Bankruptcy and Insolvency Act (Canada). Part XII sets out a simple and fair process for dealing with securities firm bankruptcies.
IIROC and CIPF are committed to taking available measures to protect the interests of all MF Global Canada Co. customers and to preserve account value in an expedited manner.
KPMG, in consultation with CIPF and with the cooperation of IIROC, MF Global Canada Co. and third-party organizations, which include clearing organizations and custodians, will work to verify all customer accounts and to determine the financial position of the firm. Based on preliminary investigations, all MF Global Canada Co. customer assets are currently accounted for.
On Oct. 31, 2011, MF Global Holdings Ltd., the parent company of MF Global Canada Co., filed for bankruptcy in the United States. In a related development on Nov. 1, IIROC suspended MF Global Canada Co. as a Dealer Member of IIROC. MF Global Canada Co. consented to the suspension on the basis of being capital deficient. The bankruptcy order secured today by CIPF was consented to by MF Global Canada Co.
The bankruptcy order obtained by CIPF is similar to proceedings relating to MF Global Canada Co.’s U.S. affiliates initiated by the Securities Investor Protection Corporation, CIPF’s customer compensation counterpart in the United States.