CIPF Timeline

The Canadian Investor Protection Fund (CIPF or the Fund), originally named the National Contingency Fund, was established as a trust by an Agreement and Declaration of Trust between several sponsoring Self-Regulatory Organizations (SROs) at the time:

• The Canadian, Montréal, Toronto, and Vancouver Stock Exchanges, and
• The Investment Dealers Association of Canada (IDA)

The Fund’s purpose was to protect customers who suffered financial loss due to the failure of a Member firm of any one of its SROs.

The A.E. Osler insolvency was CIPF’s largest insolvency and prompted a review and restructuring by the Board and its advisors.

The Fund's name was changed to the Canadian Investor Protection Fund to more accurately reflect the Fund’s role. For the first time, coverage limits for clients were formally defined, and the composition of the Board was broadened to include public directors.

CIPF and the Canadian Securities Administrators (CSA) formalized their relationship in a Memorandum of Understanding that defined the role and the responsibilities of CIPF. Under this agreement, the CSA relied on CIPF to oversee the sponsoring SROs’ procedures and rules for ensuring the solvency of their members.

The Bankruptcy and Insolvency Act of Canada was amended to include Part XII, a section specific to the insolvency of securities dealers. Part XII names CIPF as a party that can apply to the court to appoint a trustee.

CIPF became a non-share member corporation and an Industry Agreement was established between the SROs and CIPF, replacing the Agreement and Declaration of Trust.

The regulation of investment dealers in Canada was consolidated and CIPF’s responsibilities were realigned:

• The Investment Industry Regulatory Organization of Canada (IIROC) became the only self-regulatory organization that carries out regulation activities with respect to investment dealers in Canada. This role was previously performed by various provincial and territorial stock exchanges.  IIROC is the successor organization to the IDA.
• CIPF’s purpose remained to provide limited protection for property held by a member firm on behalf of an eligible client, if the member firm becomes insolvent. 
• CIPF’s oversight role on behalf of the CSA was eliminated. 
• The realigned roles and responsibilities between CIPF and IIROC were established in a new Industry Agreement between CIPF and IIROC, and an amended Memorandum of Understanding between CIPF and the CSA.

CIPF celebrates its 50 year anniversary since its inception in 1969. A video illustrating CIPF’s journey over the past five decades can be viewed here.