The Investment Dealers Association’s board has approved a by-law amendment enhancing the IDA’s ability to provide financial assistance to securities industry organizations.

The change takes effect July 15. The instruments currently covered under this by-law include such items as cheques, orders for payment and investments. This amendment expands this authority to loans and loan guarantees.

The only loan guarantee the IDA had executed prior to this amendment was to the Canadian Investor Protection Fund in 1980. On that occasion, a new by-law was enacted specifically to permit the CIPF loan guarantee. This amendment was drafted in response to a requirement of the IDA to issue another loan guarantee, this time to Market Regulation Services Inc.

The IDA says that it may also encounter similar situations in the future, and that this amendment will eliminate the occurrence of undue delays associated with passing a specific by-law amendment each time a similar need arises The amendment requires that any guarantee extended pursuant to this by-law must be approved by the Executive Committee of the board.