If you meet the four criteria below, you are eligible for CIPF protection:
There is no requirement that you live in or be a citizen of Canada.
A member firm is an investment dealer that is a member of IIROC (Investment Industry Regulatory Organization of Canada). Investment dealers that are members of IIROC are also automatically members of CIPF. A list of member firms is available here.
CIPF does not cover:
Does CIPF guarantee the value of your investment?
No. CIPF’s role is to ensure the return of a client’s property held by a member firm, if the member firm become insolvent. CIPF does not guarantee the value of the property. An example showing how CIPF coverage works is provided below.
If a client bought one hundred shares of Company X at $50 per share through a member firm, and the share value on the day of the member firm’s insolvency was $30, CIPF’s objective would be returning the one hundred shares to the client because that’s the property in the client’s account at the date of insolvency. If the one hundred shares are missing from the account, CIPF would provide compensation based on the value of the missing shares on the day of the firm’s insolvency. In this example, that’s $30 per share.
If any securities, cash or other property in client accounts are missing, CIPF will provide compensation for the value of the missing property as at the date of the member firm’s insolvency, up to the limits prescribed in the CIPF Coverage Policy. This protection is only provided where the investment dealer is a CIPF member firm.
To learn more about how compensation for missing property is calculated by CIPF, please refer to Loss Calculation.
Any claims to CIPF must be filed within 180 days of the date of the member firm’s insolvency, in accordance with the CIPF Coverage Policy.
Examples and explanations provided on this website are for illustration purposes. The CIPF Coverage Policy will govern exclusively in determining any claim. Please refer to the CIPF Coverage Policy for complete details.
Below is a summary of the coverage limits provided for in the CIPF Coverage Policy based on both the type of client and the type of account(s) the client has with a member firm. For complete details, please refer to the CIPF Coverage Policy.
Limits for Individuals
For an individual holding an account or accounts with a member firm, the limits on CIPF protection are generally as follows:
There are exceptions, such as where an account is held by an individual in that person’s capacity as an executor of an estate of a deceased person. For further information, see below under Limits for Testamentary Trusts.
Limits for Corporations, Partnerships and Unincorporated Organizations
A corporation, partnership or unincorporated organization holding an account with a member firm is generally considered to be separate from its owners or partners for purposes of determining the limit on CIPF protection. The limit on CIPF protection for these types of clients is generally $1 million for all accounts combined. Some exceptions apply.
There are exceptions to this general rule for certain types of personal holding corporations, partnerships and unincorporated organizations as described in the CIPF Coverage Policy. In certain cases where an individual has a controlling interest in one of these types of entities, the accounts held by the entity are not considered distinct from the owner’s personal accounts. As such, the owner’s interest in these accounts is included in his or her $1 million limit for combined general account coverage.
Please refer to the CIPF Coverage Policy for complete details.
Limits for Testamentary Trusts
For accounts held in the name of an estate, a deceased person (also known as a decedent), or the executor or administrator of the estate of the decedent, the limit on CIPF coverage is $1 million. This limit applies to all accounts held for the same decedent combined.
Limits for Inter-vivos Trusts and Trusts Imposed by Law
For accounts of inter-vivos trusts that are created by a written instrument and trusts imposed by law, the limit on CIPF coverage is $1 million. These accounts are considered to be distinct from accounts of the trustee, the settlor or any beneficiary.
Limits for Other Types of Customers
Please see the CIPF Coverage Policy for complete details.
Accounts held Jointly
Unless otherwise evidenced in writing, proportionate interest in a joint account will be presumed to be equal for all parties with an interest in the account. Each party will have CIPF protection for their interest in the joint account up to the limit that applies to all of their general accounts combined. In most cases, this limit is $1 million.