Securities regulators have extended the deadline for investors to claim a share of the almost $60 million being distributed to victims of the collapse of the asset-backed commercial paper (ABCP) market.
The Ontario Securities Commission (OSC) and the Investment Industry Regulatory Organization of Canada (IIROC) said Tuesday that they have extended the deadline for eligible investors to submit claims for the distribution of $59.875 million in settlement funds. The regulators have pushed the deadline to October 26, from June 30, “in order to ensure that all investors who are eligible to participate in the distribution have an opportunity to do so,” they say.
By extending the deadline, the regulators are also delaying distribution of the settlement funds, which was expected to occur in September under the previous deadline. The regulators say they will provide further information on the distribution after the new deadline.
The planned distribution, which is being administered by Ernst & Young Inc., involves approximately $59.875 million that was secured by the regulators in settlements with five investment dealers who sold non-bank ABCP before the market collapsed in August 2007. As a result of those settlements, Scotia Capital Inc. paid $28.95 million to IIROC; CIBC/CIBC World Markets Inc. paid $21.7 million to the OSC; HSBC Bank of Canada paid $5.925 million to the OSC; and Canaccord Financial Ltd. and Credential Securities Inc., paid $3.1 million, and $200,000, respectively, to IIROC.
The funds are to be distributed directly to investors who purchased ABCP from those dealers during specific time periods. The eligibility criteria are based primarily on the facts set out in the settlement agreements.