What is the 'Canadian Investor Protection Fund - CIPF'

The Canadian Investor Protection Fund is a not-for-profit insurance program established by the provincial and territorial securities regulators across Canada. The Canadian Investor Protection Fund is designed to protect investors from the bankruptcy of an individual investment firm.

Accounts are covered for up to $1 million in shortfalls in an accounts with securities, commodity and futures contracts, segregated insurance funds or cash. A shortfall is the difference between the market value of the account and what the insolvent company can return to the customer. While investment firms rarely become insolvent, the CIPF exists to protect the investment accounts of customers.

BREAKING DOWN 'Canadian Investor Protection Fund - CIPF'

The Canadian Investor Protection Fund only protects investors for losses that result from the insolvency of an investment firm. It does not protect investors from losses that occur because an investor put money in a fund that was not appropriate for their risk profile, because the investor was defrauded or manipulated, because poor information was given to a client or because a client was misled. There may be other recourse for investors who are victims of such behavior, but the Canadian Investor Protection Fund will not make such investors whole. 

CIPF insurance is purchased by member firms through the Canadian Investor Protection Fund. As long as you have an investment account with a member firm, you do not need to purchase additional insurance, and you benefit from the insurance at no charge. Even non-Canadian residents who have investment accounts with Canadian member firms can benefit from the insurance program.

The Canadian Investor Protection Fund is sometimes confused with the Canadian Deposit Insurance Corporation, a corporation established by the Canadian Federal government in 1967 to insure consumer banking deposits. The Canadian Investor Protection Fund is more generous than Canadian deposit insurance. Whereas consumer savings deposits are insured up to $100,000 Canadian, an investor can receive upwards of $1 million Canadian in investor protection.

Accessing the Canadian Investor Protection Fund

Approximately 170 different financial services firms offer insurance from the Canadian Investor Protection Fund. If you wish to confirm that the securities firm you are transacting with is a member of the Canadian Investor Protection Fund, you should contact your investment advisor or representative, or you can call CIPF at (416) 866-8366 or toll free at 1 (888) 243-6981. If a member firm has become insolvent and you think you are owed insurance money, you should contact the bankruptcy trustee in charge of the particular case.

RELATED TERMS
  1. Canadian Securities Administrators ...

    Canadian Securities Administrators is a collective forum composed ...
  2. CAD (Canadian Dollar)

    CAD is the currency abbreviation or currency symbol for the Canadian ...
  3. Canadian Securities Course (CSC)

    The Canadian Securities Course (CSC™) is an entry-level program ...
  4. USD/CAD (U.S. Dollar/Canadian Dollar)

    Colloquially known as the loonie, USD/CAD is the abbreviation ...
  5. Canadian Dollar - CAD

    The Canadian dollar (CAD) is the national currency of Canada.
  6. Accident And Sickness Insurance ...

    This is a Canadian government statute that defines the acceptable ...
Related Articles
  1. Insights

    Cross-Border Shopping: Bane Or Boon?

    Lower prices, better selection, lower sales tax rates and a strong Canadian dollar draw over 1.9 million Canadians over the border to shop every month.
  2. Personal Finance

    Quiz: Are Your Finances Above Average?

    We look at average Canadian debt, credit scores and much more so you can find out how you stack up.
  3. Financial Advisor

    Build A Wall Around Your Assets

    Learn how to protect your money from lawsuits, creditors and other judgment proceedings.
  4. Investing

    Canadian Natural Resources Restarts Kirby North (CNQ)

    Higher commodity prices, improved financial outlook drives Canadian’s restart in the oil sands project.
  5. Investing

    Canada's Commodity Currency: Oil And The Loonie

    When the price of oil goes up, don't worry about how much gas is going to cost - get even by making a play on the Canadian dollar.
  6. Insurance

    Is Loan Protection Insurance Right For You?

    Loan protection insurance can keep you from defaulting on your loans when you're in financial trouble, but it's not for everyone. Learn more on how it can help you.
  7. Tech

    The 3 Best Buy-and-Hold Canadian Stocks

    Learn how the market is misreading Canadian stocks and how long-term buy-and-hold investors can stand to benefit from the misrepresentation.
  8. Insurance

    How to Protect Your Income No Matter What

    What does it mean to insure your income? Here are a variety of ways to do it and some insights into when it might make sense to invest in income insurance.
  9. Investing

    Mutual Funds Are Not FDIC Insured: Here's Why

    Find out why mutual funds are not insured by the FDIC, including how to minimize your risk with educated mutual fund investments.
  10. Insurance

    How PMI Insurance is Different than Home Insurance

    Homeowner's Insurance and Private Mortgage Insurance are both common requirements of closing on a mortgage, but each has different uses you should be aware of before purchasing a home.
RELATED FAQS
  1. What is the main business model for insurance companies?

    Read about the most important components of an insurance company business model, such as risk pricing, investing and claims ... Read Answer >>
Trading Center