UPDATE 1-Plan in works to help small Canadian ABCP holders

(Adds comments from ABCP investor)

By Lynne Olver

TORONTO, March 28 (Reuters) - A relief plan to assist individual owners of frozen Canadian asset-backed commercial paper is in the works, but it is moving more slowly than participants hoped, Canaccord Capital Inc (CCI.TO: Quote, Profile, Research) Chief Operating Officer Mark Maybank said on Friday.

"A lot of people are working very diligently ... we continue to work with others to put together that plan," Maybank said in an interview. "It's not finished, it's certainly taking longer than we or anyone else would like, but we think we're getting closer."

Some retail investors are upset with a proposal to restructure C$32 billion ($31.4 billion) of asset-backed notes that were issued by various non-bank-sponsored trusts. This segment of the commercial paper market collapsed last summer.

Retail noteholders, most of them Canaccord clients, outnumber institutional investors with big holdings, so they could kill the seven-month-long ABCP restructuring effort next month if a majority votes against the proposal.

The relief plan could offer extra liquidity to small ABCP investors who receive new, restructured notes.

But it is "doubtful" the plan will be finalized before public information meetings on the main restructuring proposal begin next week, Maybank said.

He declined to name the other parties in the talks. The Globe and Mail newspaper said "a group of Canadian financial institutions" was involved.