CIPF provides limited protection for property held by a member firm on behalf of an eligible client, if the member firm becomes insolvent. Member firms are investment dealers that are members of IIROC (Investment Industry Regulatory Organization of Canada). These investment firms are also automatically members of CIPF.
CIPF coverage is custodial in nature. CIPF does not provide protection against any other type of risk or loss. If you have an account with a member firm, and that firm becomes insolvent, CIPF works to ensure that any property being held for you by the firm at that time is given back to you, within certain limits. Client property can include securities and cash. In certain circumstances, CIPF’s role may involve requesting the appointment of a trustee in bankruptcy.
Investor Series #1: Most Common Myths about CIPF
Investor Series #2: CIPF and CDIC – How are They Different?
Investor Series #3: Investor Protection Fund Top Facts at a Glance