Coverage limits

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1. Is there a limit on the amount of coverage?

Yes. If you have a customer account with a CIPF Member you are eligible for up to $1 million of coverage in Canadian funds. See, "Can I increase my CIPF coverage by opening multiple accounts?", if you have more than one account and, "What if my investment dealer becomes insolvent and I have more than $1 million in my account?",  if your account exceeds $1 million.

2. Can I increase my CIPF coverage by opening multiple accounts?

If you have more than one account you may be eligible for additional coverage if one or more of the accounts meets one of CIPF’s Separate Account definitions. Here’s how it works:
  1. Each of your accounts is reviewed to determine its purpose.  For example:
    • RRSP and RRIF accounts are both for retirement purposes
    • Cash and margin accounts are for general use
    • Your percentage interest in an account that is held on a joint or share ownership basis is also for general use
  2. The amounts owed to you (less any amounts you might owe to the CIPF Member) in accounts held for the same purpose are added together and considered to be a single account for coverage purposes
  3. Each account is then assessed against CIPF’s Separate Account definitions to determine if it is a Separate Account. If it is, it is eligible for $1 million coverage
  4. Any accounts that are not Separate Accounts are combined into a single General Account that is eligible for $1 million coverage.

3. What is the CIPF coverage limit for joint accounts?

If you have an account, or accounts, that are opened jointly with one or more persons, your proportionate interest in the account, or accounts, is presumed to be equal to that of each other customer with an interest in the account, unless otherwise evidenced in writing, and will be included in your General Account coverage. General Accounts are eligible for $1 million coverage.

4. What if my investment dealer becomes insolvent and I have more than $1 million in my account?

CIPF’s coverage is determined after all available assets are returned to customers, and since industry regulations require customer securities be held in acceptable locations, like CDS Clearing and Depository Services Inc., or in the case of mutual funds, in book-based systems, most customer assets will likely be available to be returned. If you do have a shortfall after the trustee’s distribution, you will have a claim against CIPF, but it is unlikely that the amount will exceed $1 million.

For more information please refer to Allocation of Losses to Customers

5. The CIPF Member that I have an account with told me that my account has additional protection over and above that offered by CIPF. Can this be true?

Yes, this can be true if your account is at a CIPF Member that has opted to obtain a private insurance policy, known as “excess CIPF coverage”. This coverage is not provided by CIPF. You should consult your account representative for more information.

6. I have two RRSP accounts at the same firm. Each plan has a different trustee. Are these accounts combined for CIPF coverage purposes?

Yes. All retirement accounts that are established for the same person are combined for coverage.

7. What is my CIPF coverage if I have $1 million in my RRSP account, my husband has $1 million in an RRSP account and we have a $2 million joint trading account?

You and your husband will each have $1 million coverage on your RRSP accounts since they are defined to be Separate Accounts by CIPF.

Assuming you have a 50 per cent interest in the joint account, each of you would include $1 million in your General Account.

In summary, your husband has $1 million RRSP account coverage and $1 million General Account coverage, and you have $1 million RRSP account coverage and $1 million for General Account coverage.

8. What if my account is a margin account and I owe money to the investment dealer. Am I still protected?

Yes, but the amount of your claim for the cash, securities or other property that is owed to you by the Member is reduced by the amount of the cash, securities or other property that you owe to the Member.

9. Are Tax-Free Savings Accounts (TFSAs) held in a customer's accounts at an IIROC Dealer Member covered by CIPF?

Yes.  A TFSA account is considered part of a customer's general account for the purposes of CIPF coverage.  Therefore, a TFSA will be combined with other general accounts eligible for $1 million coverage.