What Happens If My CIPF Member Is Insolvent?
If your CIPF Member is insolvent, you will be notified by either:
- Mail – either directly from CIPF or from the appointed trustee/receiver
- A notice published in a national and/or local newspaper
- Any other means deemed appropriate by CIPF given the circumstances of the insolvency
The information required to make a claim will be available from the CIPF website, or upon request. Customers should refer to Coverage Policy to determine if their claim is eligible for payment by CIPF.
CIPF will also post a notice to the “News and Publications” section of the CIPF website.
You should know that...
- While your account remains at the insolvent CIPF Member, it will likely be temporarily frozen, which means you will not be able to withdraw funds or trade securities
It may be possible, however:
- To obtain an advance on the funds in your account from the trustee/receiver or CIPF if they are required to meet your daily living expenses or to complete a previous commitment
- For you to do liquidating trades if permitted by the securities commissions
You should also know...
- Open positions that require daily cash settlements, such as in options and futures, may, with or without notice, be closed out or liquidated
For more information, please refer to the CIPF Coverage Policy and the CIPF Claims Procedures.