Investor Presentaiton

19 18 18 Moreover, the Sarbanes-Oxley Act modified the Bankruptcy Act to prevent debt forgiveness through disgorgement during a bankruptcy. The Securities and Exchange Commission (SEC) also recommends certain modifications to improve victim compensation 18. 3.3.2 Investor compensation in Canada In Canada, the investor protection measures cover insolvency cases as well as certain breaches of the securities laws. Protection against deposit-taking institution insolvency is the responsibility of the Canada Deposit Insurance Corporation (CDIC), which insures bank deposits for up to $100,000 per person, and certain provincial protection funds, including Fonds de l'assurance-dépôts du Québec (FADQ), which offer the same coverage in a credit union or a trust company. This program covers bankruptcy cases. In the securities sector, the IDA administers the Canadian Investor Protection Fund (CIPF). This fund protects investors should a securities broker go bankrupt. It covers losses up to one million dollars per qualified account. It should be noted that mutual funds offered by deposit-taking institutions are also covered in bankruptcy cases when they are sold through a subsidiary registered with the CIPF. Since July 1, 2005, the Mutual Fund Dealers Association of Canada (MFDA) has protected investors in the event a mutual fund dealer goes bankrupt in any province other than Québec 19. Details of the recommendation can be found at the website below: [http://www.sec.gov/news/studies/sox308creport.pdf]. Discussions are underway with this body to facilitate securing the protections currently offered by Autorité des marchés financiers and those provided by the MFDA. This is to prevent firms and mutual fund sales reps from overcharging, among other things. Consultation paper Page 16

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