How Does CIPF Fit into the Canadian Regulatory System?

CIPF is not a regulator and has no authority to investigate or regulate its member firms. CIPF is funded by its member firms. CIPF's mission is to contribute to the security and confidence of customers of IIROC Dealer Members by maintaining adequate sources of funds to return assets to eligible customers in cases where a member firm becomes insolvent.

CIPF’s role in the Canadian regulatory system is governed by the following agreements:

  • As provided under Canadian provincial or territorial securities laws, securities regulators that make up the Canadian Securities Administrators (CSA) have issued orders approving CIPF as an investor protection fund for IIROC Dealer Members. A Memorandum of Understanding among CSA members sets out the terms of their oversight framework for CIPF. CIPF’s mandate and responsibilities are established through these documents.
  • An Industry Agreement between CIPF and IIROC. IIROC is the national self-regulatory organization for firms that are registered as investment dealers in Canada. This agreement establishes the respective responsibilities of CIPF and IIROC. Under this agreement, IIROC must provide prompt notice to CIPF of any situation that is likely to require a payment by CIPF.

UPDATE_cipf_infographic 2020