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
This communication will provide you with useful information on:
- The actions you must take
- The actions that CIPF, or its appointed trustee/receiver, plan to take.
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.