The Mutual Fund Dealers Association announced on Monday enhanced coverage terms to the contingency fund that covers investors in the mutual fund industry, the MFDA Investor Protection Corporation.

The MFDA IPC said that effective Jan. 1, 2010, customer protection coverage will be enhanced and clarified.

The primary changes to the coverage policy relate to: the circumstances in which a customer is considered to have an account with an MFDA member; clarification of the eligibility for customers in Quebec (where MFDA IPC does not provide coverage); and, the extension of coverage to losses caused by the insolvency of a member in respect of property in the control of the member including the conversion of such property.

Many other clarifying changes have been made, it notes, and MFDA members and customers should refer to the coverage policy for details. No changes have been made to the coverage limits of $1,000,000 for eligible losses and the products covered are the same as in the previous policy.