Since its creation in 1969, CIPF has stepped in to help investors following the failure of 21 investment dealers. In fact, CIPF has paid or provided $47 million for claims and related expenses net of recoveries arising from these failures.
Yet many investors are unaware of the significant benefits of CIPF Coverage when a Member investment dealer fails.
Do you need IIROC Compliance Continuing Education (CE) Credits?
To help you understand the protection CIPF provides so that you can comfortably discuss it with your clients, information about CIPF coverage is set out in the Continuing Education module “Overview of Canadian Investor Protection Fund (CIPF)”. This webcast is IIROC accredited and qualifies for 0.5 hours of Compliance CE credits. To register click here.
CIPF has also launched the CIPF Advisor Series. This Resource Centre provides online materials to educate and inform advisors about CIPF’s role in the Canadian financial system.
CIPF's coverage is determined after all available assets of the insolvent Member are returned to customers by a trustee/receiver. For bankruptcies of a Member administered under Part XII of the Bankruptcy and Insolvency Act (Canada), the process of returning all available assets of the Member to customers is generally done by a trustee using the 4-steps outlined below.
CIPF/trustee will allocate the SHORTFALL to each customer in proportion to their claim for net equity.HERE IS AN EXAMPLE:
This example is for illustrative purposes and each insolvency can produce different results.
For more information, please refer to the CIPF Coverage Policy.