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.

The CIPF was founded in 1969 and was originally 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 CIPF.

What is covered and not covered
It is important to understand the nature of the CIPF coverage: it protects the investor exclusively against loosing money due to an investment dealer (e.g., broker) insolvency. As of November 2021, 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.

CIPF offers no protection against:
 * a drop in the value of your investments for any reason
 * investments that were not suitable for you
 * fraudulent or other misrepresentations that were made to you
 * misleading information that was given to you
 * important information that was not disclosed to you
 * poor investment advice
 * the insolvency or default of the company or organization that issued your security

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.