Investors’ Indemnity Regulations (C.R.C., c. 708)

Short Title

1 These Regulations may be cited as the Investors’ Indemnity Regulations.

Claim for Payment

• 2 (1) Every claim for payment out of the Investors’ Indemnity Account in respect of a loss sustained by a person (hereinafter called the “subscriber”) who has paid all or part of the purchase price of a security but has not received the security or repayment of the amount so paid, or in respect of a loss sustained by a person in the redemption of securities including, but without limiting the generality of the foregoing, every claim

  • (a) by a person who has made a payment on account of the purchase price of a security to the Receiver General or a person duly authorized to accept subscriptions for securities on behalf of Her Majesty, and has not received the security or a satisfactory accounting or repayment of the amount that he has so paid,

  • (b) by a person in respect of securities forwarded in the mail to the Bank of Canada or a department or public officer for redemption and for which the person entitled to receive payment has received no payment,

  • (c) by a redemption agent, other than the Bank of Canada, for a loss incurred in the redemption of Canada Savings Bonds or War Saving Stamps where the loss does not arise from the fault or negligence of the redemption agent or a person under his supervision and control, or

  • (d) for principal, accrued interest or premium in respect of a security issued in exchange for another security, which has not been received by the owner thereof,

  shall be submitted to the Minister of Finance, accompanied by a statement of the relevant facts.

• (2) No payment out of the Investors’ Indemnity Account in respect of a claim submitted under subsection (1) shall be made until the claim has been investigated by an officer of the Department of Finance or such other person as the Minister of Finance may designate.

• (3) Where the Minister of Finance, after reviewing a claim submitted under subsection (1) accompanied by a statement of the relevant facts and a report of the investigation in respect of such claim required under subsection (2), decides that a payment is to be made in respect of the claim, the amount of the payment as determined by the Minister shall be paid to the claimant or his legal representatives or such other person as the Minister decides, but no payment in excess of $5,000 shall be made except with the prior approval of the Treasury Board.

Subscriber’s Assignment

3 Where a claim for payment out of the Investors’ Indemnity Account is made in respect of a loss suffered by a subscriber

• (a) who has paid an amount on account of the purchase of a security to a person authorized to receive subscriptions for securities, or

• (b) whose employer has, out of amounts payable to the subscriber, retained an amount to be used to purchase a security for the subscriber or his nominee,

no payment shall be made out of the Investors’ Indemnity Account unless the subscriber or his legal representative executes an assignment in favour of Her Majesty of all his claims in respect of the amount so paid or retained and of the said security.

4 An annual statement of the payments out of the Investors’ Indemnity Account and the recoveries credited to the Account in each fiscal year shall be submitted to the Treasury Board within 60 days after the end of the fiscal year.