CIPF Disclosure Policy - Pending Implementation

The revised CIPF Disclosure Policy provided below was approved by the CIPF Board of Directors on September 29, 2011 and will be effective when the new IIROC rule 29.28 is approved.

Purpose

This Policy has been adopted by the Board of Directors of the Canadian Investor Protection Fund (CIPF) to describe the requirements for disclosure of CIPF Membership by CIPF Members.

General Principles

  • Members must disclose Membership in the Canadian Investor Protection Fund to clients.
  • No Member is to make any false or misleading or deceptive statement about the purpose of, or protection provided by, the Canadian Investor Protection Fund. 
  • Where practical, communication about CIPF Coverage must be done in the same language as other communication from the Member to the client.
  • Members must not refer to CIPF Membership in respect of premises or advertising whose business or subject relates solely to activities in respect of which CIPF protection is not available.

1.  Definitions     

a)   Member means a Dealer Member of the Investment Industry Regulatory Organization of Canada (IIROC).

b)   CIPF Membership Symbol

The CIPF Membership Symbol means the symbol, mark or other designation prescribed as such by CIPF for use by Members.

c)   CIPF Decal

The CIPF Decal shall be a decal so designated by CIPF and made available to Members by CIPF at the expense of the Member.

d)   CIPF Explanatory Statement

The CIPF Explanatory Statement is as follows:

“Customers’ accounts are protected by the Canadian Investor Protection Fund within specified limits.  For details, please see www.cipf.ca”

e)   CIPF Brochure

The CIPF Brochure means any publication so designated by CIPF, which explains the purpose of CIPF and the protection it offers and which CIPF authorizes for public distribution.

2.  Compliance with General Principles

Members must take reasonable efforts to ensure that their communication referring to CIPF complies with the General Principles.

3.  Display of CIPF Decal at Premises

The CIPF Decal must be clearly visible to customers at each business location to which clients, or potential clients, have access.

4.  Brochure

Each Member must provide the current version of the CIPF Brochure to all new clients and to all other clients upon request.

5.  Use of the CIPF Explanatory Statement and Membership Symbol on Confirmations and Account Statements

Each Member must include on all confirmations and account statements made available to clients:

a)    The CIPF Membership Symbol on the front, and

b)    CIPF Explanatory Statement in legible print on either the front or the back. 

6.  Use of the CIPF Membership Symbol in Member Advertising

Use of the CIPF Membership Symbol is optional on written, visual and audio advertising.

7.  Use of the CIPF Membership Symbol on Member Websites

Members having a website, must display the CIPF Membership Symbol which shall include a link to the CIPF website at www.cipf.ca unless such link would not be in compliance with the general principles of this Policy.

8.   Members may provide explanations about CIPF and its protection to customers, however any material created by the Member for broad distribution must be approved by CIPF in advance.

9.   No Member is permitted to make any reference to a third party about its CIPF risk classification.

  10. Upon suspension or termination of IIROC membership, each Member shall immediately cease using the CIPF Explanatory Statement, Brochure, Membership Symbol and Decal and shall cease identifying itself as a Member of CIPF.

  11. An implementation date will be set for any change to the CIPF Membership Symbol, the Decal, the Explanatory Statement, or Brochure after considering the nature of the change and the Members’ cost of implementation.