What is ‘Canadian Investor Protection Fund – CIPF’
A Canadian not-for-profit organization set up by the investment industry designed to protect investors from the bankruptcy of an individual investment firm.
Accounts are covered for up to $1 million in shortfall of securities, commodity and futures contracts, segregated insurance funds and cash. Shortfall is the difference between the market value of the account and what the insolvent company can return to the customer.
Explaining ‘Canadian Investor Protection Fund – CIPF’
While investment firms rarely become insolvent, the CIPF exists to protect the investment accounts of customers.
The size of the fund’s resources is close to $300 million.
Canadian Investor Protection Fund (cipf) FAQ
What does Cipf cover?
CIPF covers: Missing property – This is property a member firm holds for you and is not returned after the firm’s insolvency. Missing property can include: cash. securities.
Are Segregated Funds protected by CIPF?
It covers up to $1 million in shortfalls in an account with securities, commodity and futures contracts, segregated insurance funds or cash. While investment firms hardly become insolvent, the CIPF protects the investment accounts of customers.
Does CIPF cover cash?
CIPF limitedly protects property held by a member firm on behalf of an eligible client, if the member firm becomes insolvent. Client property can include securities and cash. However, CIPF does not guarantee your property’s value.
Is my money safe with Wealthsimple?
Wealthsimple is insured by CPIF, meaning that if Wealthsimple goes out of business, your investments are protected.
What does SIPC stand for?
It stands for Securities Investor Protection Corporation.
Are questrade accounts insured?
Above all, Questrade promises 100% reimbursement for any unauthorized transactions in your Questrade account resulting in direct losses to you, and your account is insured for up to $10 million should Questrade become insolvent.
Further Reading
- The Challenges and Contemporary Issues of Taiwan's Investor Protection System: A Model to Learn or to Avoid – heinonline.org [PDF]
- Investor protection, a comparative study of the securities laws in Manitoba (Canada) and the Russian Federation – mspace.lib.umanitoba.ca [PDF]
