Canadian Securities Course (CSC) Level 1 Practice Exam 2026 - Free CSC Level 1 Practice Questions and Study Guide

The correct answer is B. The MFDA IPC (Investor Protection Corporation) protects eligible customers of insolvent MFDA (Mutual Fund Dealers Association) member firms. In the event that an MFDA member firm becomes insolvent and is unable to return securities and cash to its clients, the MFDA IPC steps in to compensate those clients for their losses, up to certain prescribed limits. This protection helps enhance confidence in the financial markets by providing investors with a safety net in case their investment dealer faces financial difficulties.

Options A, C, and D are incorrect as they do not accurately represent the role and function of the MFDA IPC.