Court approves MF Global client payout

Just in time for Black Friday, there’s good news for clients of bankrupt MF Global Canada; the Ontario Superior Court of Justice has granted an order that allows the bankruptcy trustees to start cutting cheques.

KPMG Inc. says the cheques will be in the mail to MF Global Canada’s 2,500 clients within seven business days.

“We are working closely with the Canadian Investor Protection Fund and RBC Dominion Securities to help former MF Global Canada customers get access to their accounts as quickly as possible,” said Richard Harris, Restructuring Partner, KPMG.

In mid-November the courts ordered client assets transferred to RBC Dominion Securities. KPMG reports that the bulk transfer of accounts is now “substantially complete” and clients should be able to access their accounts by the end of next week.

The firm’s U.S. parent, MF Global Holdings Ltd., declared bankruptcy in the United States on October 31.

The Canadian Investor Protection Fund applied for a bankruptcy order for MF Global Canada on Wednesday, November 2, 2011, after IIROC suspended MF Global Canada’s membership rights and privileges on November 1, 2011.

The Canadian bankruptcy order was granted by the Court on Friday, November 4, 2011.

Further information about the bankruptcy of MF Global Canada can be accessed on the KPMG www.kpmg.ca/mfglobalcanada website, mfglobalcanada@kpmg.ca, 416 777 3666 or toll free at 1 866 602 6743.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.