The Canadian Investor Protection Fund has signed a mutual cooperation agreement with its U.S. counterpart, the Securities Investor Protection Corp.

The CIPF, which maintains a fund to protect the customers of insolvent investment dealers, said Wednesday the memorandum of understanding “will facilitate mutual cooperation and assistance in the event of the insolvency of a brokerage firm that does business in both nations.”

“The globalization of the investment industry creates the need to work collaboratively across borders,” CIPF President Rozanne Reszel said in a statement. “CIPF and SIPC have shared their expertise effectively for many years. CIPF is pleased to participate in the MOU which evidences this relationship for the benefit of investors.”

SIPC President Stephen Harbeck said the MOU “gives a structure to that relationship, which should benefit investors. The MOU provides for cooperation and efficient handling of claims from investors where there are cross border issues. We will also exchange information on a regular basis.”