A Canadian not-for-profit organization set up by the investment industry designed to protect investors from the bankruptcy of an individual investment firm. Canada investment protection fund is a non profit corporation established by sponsoring SROs to protect customers in the event of the insolvency of a matter.
Accounts are covered for up to $1 million in shortfall of securities, commodity and futures contracts, segregated insurance funds and cash. Shortfall is the difference between the market value of the account and what the insolvent company can return to the customer.
The primary role of the Canadian Investor Protection Fund (CIPF) is to provide protection to clients, within defined limits, who suffer financial loss due to the insolvency of a member organization. The CIPF does not cover losses that result from the changing market values of securities. It is set-up by the stock exchanges and the Investment Dealers Association.
