What if my account has assets exceeding $1 million?

Even if your assets exceed $1 million, it is unlikely that you will suffer a loss. Here’s why, in the case of an insolvency administered under Part XII of the Bankruptcy and Insolvency Act (Canada):

  • Losses are shared among customers in proportion to their net assets at the Member, so unless your account is very large in relation to the Member’s other clients, your share of the loss will likely be below the coverage limit

    For more information on how losses are allocated to customers, click here.

  • Your claim to CIPF is determined after the trustee/receiver returns the available customer assets to you

    Available customer assets includes all customer securities, whether segregated or not, other than securities registered in customer name. It also includes all cash at the insolvent CIPF Member, all inventory of the CIPF Member, and certain other of its property

  • Industry regulations require customer securities be held in acceptable locations, like the CDS Clearing and Depository Services Inc., or in the case of mutual funds, in book-based systems, increasing the likelihood they will be available to be returned if a CIPF Member becomes insolvent.

For more information please refer to the CIPF Coverage Policy.