Canadian Investor Protection Fund (CIPF)

What is the Canadian Investor Protection Fund?

The Canadian Investor Protection Fund is a not-for-profit insurance program laid out by the provincial and regional securities regulators across Canada. The Canadian Investor Protection Fund is intended to shield investors from the bankruptcy of an individual investment firm.

Accounts are covered for up to $1 million in shortfalls in an account 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 bankrupt company can return to the customer. While investment firms rarely become ruined, the CIPF exists to safeguard the investment accounts of customers.

Understanding the Canadian Investor Protection Fund (CIPF)

The Canadian Investor Protection Fund just shields investors for losses that outcome from the insolvency of an investment firm. It doesn't shield investors from losses that happen in light of the fact that an investor put money in a fund that was not fitting for their risk profile, in light of the fact that the investor was duped or controlled, on the grounds that poor data was given to a client or in light of the fact that a client was deluded. There might be other recourse for investors who are survivors of such behavior, yet the Canadian Investor Protection Fund won't restore such investors.

CIPF insurance is purchased by member firms through the Canadian Investor Protection Fund. However long you have an investment account with a member firm, you don't have to purchase extra insurance, and you benefit from the insurance at no charge. Even non-Canadian inhabitants who have investment accounts with Canadian member firms can benefit from the insurance program.

The Canadian Investor Protection Fund is in some cases mistook for the Canadian Deposit Insurance Corporation, a corporation laid out by the Canadian Federal government in 1967 to guarantee consumer banking deposits. The Canadian Investor Protection Fund is more liberal than Canadian deposit insurance. While consumer savings deposits are insured up to $100,000 Canadian, an investor can receive upwards of $1 million Canadian in investor protection.

Getting to the Canadian Investor Protection Fund

Roughly 175 different financial services firms offer insurance from the Canadian Investor Protection Fund. On the off chance that you wish to confirm that the securities firm you are executing with is a member of the Canadian Investor Protection Fund, you ought to contact your investment advisor or representative, or you can call CIPF at (416) 866-8366 or toll free at 1 (866) 243-6981. In the event that a member firm has become ruined and you think you are owed insurance money, you ought to contact the bankruptcy trustee in charge of the specific case.