What is the CIPF?

When did the CIPF launch?

The CIPF is relatively new, having launched on Jan. 1, 2023. It is operated by the Canadian Investment Regulatory Organization (CIRO), which launched the same day (under the name New Self-Regulatory Organization of Canada, or New SRO).

CIRO is the result of an amalgamation between the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA). CIRO is a national organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada’s debt and equity marketplaces.

Both IIROC and the MFDA had an investor protection fund prior to joining forces: IIROC had the Canadian Investor Protection Fund (CIPF) and the MFDA had the MFDA Investor Protection Fund (MFDA IPC). Those have merged to become the new CIPF. This integrated fund provides limited protection to customers who suffer financial losses due to the insolvency of a CIRO member. The CIPF is funded by the member firms.

What does the CIPF cover?

CIPF covers “missing property,” meaning assets held by a CIRO member firm on your behalf that aren’t returned to you when the firm becomes insolvent. Here’s an example from the CIPF website:

“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.”

Source: CIPF

“Property” can include securities, cash, commodities, futures contracts and segregated funds. “Securities” include bonds, guaranteed investment certificates (GICs), stocks, and units or shares of an investment fund such as a mutual fund or an exchange-traded fund (ETF).

However, CIPF does not cover losses resulting from these situations: 

• A drop in the value of your investments
• Investments that weren’t suitable for you
• Fraudulent or other misrepresentations 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
• Securities held directly by you
• Mutual funds registered in your name and held directly at the mutual fund company
• Crypto assets held by a member firm on your behalf that are missing at the time of the firm’s insolvency
• Other exclusions in the CIPF Coverage Policy

To be eligible for CIPF protection, investors must have used their account at the member firm solely for either holding or trading in securities or commodity and futures contracts. Investors do not have to be a resident or citizen of Canada. Learn more about CIPF coverage eligibility.

How much does CIPF cover?

These are the limits for CIPF protection for individual investors who have an account with a New SRO member firm:

• $1 million for all general accounts combined (such as cash accounts, margin accounts and TFSAs), plus
• $1 million for all registered retirement accounts combined (such as RRSPs, RRIFs and LIFs), plus
• $1 million for all registered education savings plans (RESPs) combined where the client is the subscriber of the plan

Learn more about CIPF coverage.

Which firms are CIPF members?

You can view lists of investment dealer member firms and mutual fund dealer member firms.

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About MoneySense Editors

MoneySense editors and journalists work closely with leading personal finance experts in Canada. Since 1999, our award-winning magazine has helped Canadians navigate money matters.

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