The Canadian Investor Protection Fund has issued a notice inviting clients of Graydon Elliott Capital Corp. that may have suffered losses due to its insolvency to make a claim on the industry contingency fund.

On February 26, the Investment Dealers Association of Canada announced that it had suspended the membership of Graydon Elliott and ordered it to immediately cease dealing with the public. Customer accounts have been transferred to Global Maxfin Capital Inc.

CIPF says it understands that Graydon Elliott has ceased business but does not have complete information as to its financial status. “However, customers with accounts at Graydon Elliott who have suffered or may suffer financial loss solely as a result of Graydon Elliott being or becoming insolvent may be eligible for coverage for such losses by CIPF,” it says.

“Such losses must be in respect of a claim for the failure of Graydon Elliott to return or account for securities, cash balances, commodities, futures contracts, segregated insurance funds or certain other property acquired or held by Graydon Elliott in an account for customers,” it explains. “Losses that do not result from the insolvency of Graydon Elliott such as losses arising from changing market values of securities, unsuitable investments or the default of an issuer of securities are not eligible for CIPF coverage.”

Claims must be submitted by November 30.