Canadian Investor Protection Fund

The Canadian Investor Protection Fund (CIPF) exists to ensure that, in the event of an investment dealer insolvency, cash and securities are returned to the investor, within defined limits.

As of November 2016, accounts are protected for up to $1 million per account category:
 * 1) cash accounts, margin accounts and Tax-Free Savings Accounts (TFSAs) combined;
 * 2) all registered retirement accounts combined, including Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs);
 * 3) all Registered Education Savings Plans (RESPs) combined.

The CIPF was founded in 1969 and was original named the National Contingency Fund. CIFP is member funded, so there is no direct cost to the investor. Coverage is automatic when you open an account with an investment dealer that’s a member of the Investment Industry Regulatory Organization of Canada (IIROC). Each investment dealer contributes to a substantial fund which CIPF maintains. CIPF determines the size of the fund and the amount that each investment dealer has to contribute.

Check the Member Directory on CIPF’s website to confirm that your discount broker or other investment dealer is a Member of the Canadian Investor Protection Fund.

Coverage policy
The CIPF coverage policy was last updated on April 1, 2014.

History of insolvencies
According to CIFP, since 1969, there have been 21 insolvencies and all eligible customer claims were reimbursed by CIPF. In total CIPF has paid claims of $47 million after recoveries.