The Canadian Investor Protection Fund (CIPF) is a
not-for-profit corporation created by the
Canadian
Canadians (french: Canadiens) are people identified with the country of Canada. This connection may be residential, legal, historical or cultural. For most Canadians, many (or all) of these connections exist and are collectively the source of ...
investment industry in 1969 to protect investor assets in the event of a CIPF member's
bankruptcy. CIPF is funded by its members, which are the approximately two hundred investment dealer firms regulated by the
Investment Industry Regulatory Organization of Canada (IIROC).
Investors automatically receive coverage by opening an account with a CIPF member. Each investor's coverage, when held at a CIPF member, is:
*
CA$
The Canadian dollar (symbol: $; code: CAD; french: dollar canadien) is the currency of Canada. It is abbreviated with the dollar sign $, there is no standard disambiguating form, but the abbreviation Can$ is often suggested by notable style g ...
1 million for all non-registered accounts and
TFSAs combined,
* another $1 million for
RRSPs and
RRIFs,
* and a further $1 million for
RESPs.
By example, if a person's assets are distributed between the different classes of accounts (taxable accounts, TFSA, RRSP/RRIF, RESP), they have up to CA$ 3 million in coverage at a particular CIPF member institution. An individual then may also have these accounts at other institutions for further diversification.
When a CIPF member becomes bankrupt, the CIPF will move the investor's account, within the limits of coverage, to another investment dealer where the investor can access it.
See also
*
Securities Investor Protection Corporation
The Securities Investor Protection Corporation (SIPC ) is a federally mandated, non-profit, member-funded, United States corporation created under the Securities Investor Protection Act (SIPA) of 1970 that mandates membership of most US-register ...
(U.S. counterpart)
References
External links
*
Banking in Canada
Investment in Canada
Financial regulatory authorities of Canada
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