1. I have questions on how to file my MFR on SIRFF. Who do I contact?
SIRFF queries should be directed to the SIRFF Administrator Tracey Nattrass by telephone at 416-643-7100 or by e-mail at firstname.lastname@example.org
2. I forgot my SIRFF password. What do I do?
If you are the Firm CFO, e-mail a request to reset your password to the SIRFF Administrator, Tracey Nattrass at email@example.com
. The email must include your SIRFF Login Name. If you are not the Firm CFO, contact your CFO as they may add, delete and modify user accounts within their firm profile.
3. How does CIPF inform Members of the quarterly assessment amount Members must pay to CIPF?
CIPF notifies each Member CFO by e-mail when the CIPF quarterly assessment amount is available on SIRFF. The CFO can then log into SIRFF and view the assessment reports that detail the quarterly assessment calculation. The assessment is to be paid to IIROC with filing of the March, June, September and December Monthly Financial Reports (MFR).
4. Does a client that has all their assets segregated still need CIPF protection?
Yes. Even if all of your client's assets are segregated, your client may be allocated a loss under Part XII of the Bankruptcy and Insolvency Act of Canada, the legislation applicable to investment dealer bankruptcy, which would then be eligible for up to $1 million in CIPF protection as outlined in our Coverage Policy. View example.
5. I am an introducing Member to a carrying broker. I do not hold any client assets. Why do I need to be a Member of CIPF?
The various Provincial Securities Acts require all IIROC Dealer Members, including introducers, to be Members of CIPF.
In almost all cases, if an introducer ceases business, its client assets should be easily transferred to another IIROC Dealer Member since under the introducing agreement the client assets should be held by the carrier. As such, CIPF would not expect to pay any losses.
However, in rare circumstances, introducing Members have been found to improperly hold, lose, or embezzle customer assets and CIPF has been required to make payments to settle customer claims.
- CIPF paid $0.2 million to customers of Brault Guy O'Brien for money that was not transferred to the carrier prior to insolvency, and
- $6.6 million to customers of Essex for cash that should have been in client accounts.
Similarly in the U.S., the Government Accounting Office has reported facts such as the following regarding the Securities Investor Protection Corporation's (SIPC), the U.S. equivalent of CIPF, insolvency proceedings:
- Between 1986 and 1991, introducing firm failures accounted for 26 of SIPC's 39 liquidations.
- The fraudulent schemes have included officials at introducing firms who stole customer property that should have been sent to the carrying firms for the customers.
- From 1996 through 2000, 24 of the 37 proceedings initiated by SIPC, or 65 percent, involved introducing firms that engaged in unauthorized trading.
The U.S. has also had experience where an introducer caused the failure of a carrying broker. While we have not had similar failures in Canada, we recognize that an introducer can introduce risk to a carrier, such as through trading losses in its proprietary trading book.