RBC Dominion Securities has agreed to take over the client accounts from MF Global Canada Inc.
MF Global Holdings Ltd., the Canadian firm’s parent company, filed for Chapter 11 bankruptcy protection in the United States at the end of October.
On Monday, the Ontario Superior Court of Justice approved the transfer of certain MF Global Canada client accounts to RBC DS. Holdings in the accounts to be transferred include futures, equity and fixed income positions. This transfer will enable these account holders to access their accounts.
KPMG, the court-appointed trustee in bankruptcy, and the Canadian Investor Protection Fund (CIPF) approached RBC DS after the bankruptcy filing to request accommodating a bulk transfer of accounts and positions.
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“We have been working diligently with KPMG to secure the required approvals and resolve the matter for MF Global Canada clients,” says David Agnew, head, RBC Wealth Management Canada. “We realize that the past two weeks have been very stressful for MF Global Canada clients. RBC Dominion Securities is happy to be in a position to assist.”
RBC DS says it will begin contacting clients of MF Global Canada on Tuesday and work with them to expedite access to their accounts.