Regulators

Canadian Investor Protection Fund (CIPF)

In the event of insolvency/bankruptcy of the member firm, the CIPF provides some protection to the property of the real client of the member firm.

Functions

1. Functions of CIPF?
In the event of insolvency/bankruptcy of the member firm, the CIPF provides some protection to the property of the real client of the member firm. Investment brokers registered with IIROC are members of CIPF.
When dealing with bankruptcy/insolvency, CIPF ensures that any property you hold is returned to you within certain limits within a certain period of time. Client assets may include securities and cash. In some cases, CIPF may involve requiring the appointment of a trustee in bankruptcy.
2. Tasks of CIPF
CIPF's mandate is established by Canada's provincial and territorial securities regulators. The CIPF is empowered to provide protection to eligible clients of member firms within specified limits due to inability to obtain securities, cash and other assets held due to insolvency of the member firm.
CIPF does not provide risk or loss protection and does not guarantee or protect the value of securities. Losses caused by the following reasons are not covered by CIPF:
1. Investments that are not suitable for customers
2. Fraud or misrepresentation
3. Give users misleading information
4. Important information not disclosed to customers
5. Bad investment advice given to clients
For liquidity purposes, CIPF has a credit line of CAD 125 million from a Canadian chartered bank, CIPF has a total of CAD 160 million per annum insured against losses in excess of CAD 150 million, and a second tier of insurance of 170 million U.S. dollars for compensation payments in excess of C$310 million in damages.

Regulatory appeal

1. CIPF member query link: http://www.cipf.ca/Public/MemberDirectory/CurrentMembers.aspx
2. How to handle claims:
1. Submit a claim form
2. CIPF will acknowledge all claims received in writing.
3. The client should cooperate with CIPF to determine the eligibility and claim amount, and CIPF will collect the available information and evaluate the eligibility of the claim.
4. CIPF may require the customer to supplement other information not required in the claim form, which can be submitted within 30 years. If the customer fails to submit within the specified time or the submitted information does not meet the requirements, CIPF can evaluate the claim based on the information it has at that time.
5. Before deciding on a claim, CIPF may ask the client to confirm that the information used to assess the eligibility of the claim is complete and true. CIPF will also provide a summary of the claim and provide it to the client to confirm that the information is accurate and complete, and should be amended accordingly if it is not true.
5. Final decision on claim information
6. Indemnity Claims
7. Those who do not meet the claim qualifications can further file a lawsuit

Contact information

Email: [email protected] Tel: 416 866 8366 Toll Free: 1 866 243 6981 Fax: 416 360 8441
Address: Canadian Investor Protection Fund, First Canadian Place, 100 King Street West, Suite 2610, P.O. Box 481, Toronto, Ontario M5X 1E5
Online consultation link: http://www.cipf.ca/Public/ContactUs/AskUs.aspx

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