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 the New Self-Regulatory Organization of Canada (New SRO) 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:
The Canadian Securities Administrators (CSA) is comprised of Canada's 13 provincial and territorial securities regulators that are responsible for investor protection and market integrity in their respective jurisdictions.
The CSA's objective is to improve, coordinate and harmonize regulation of the Canadian capital markets. It also aims to achieve consensus on policy decisions that affect Canada's capital market and its participants and to work collaboratively in the delivery of regulatory programs across Canada.
To carry out its responsibilities more efficiently and reduce duplicative and unnecessary regulatory burdens, the CSA relies on:
The CIPF Board Chair and the President and Chief Executive Officer meet with the CSA upon request to report on CIPF activities.
CANADIAN SECURITIES COMMISSIONS
Autorité des marchés financiers (Québec)
British Columbia Securities Commission
Financial and Consumer Affairs Authority of Saskatchewan
Financial and Consumer Services Commission (New Brunswick)
Manitoba Securities Commission
Nova Scotia Securities Commission
Office of the Superintendent of Securities, Northwest Territories
Office of the Superintendent of Securities, Nunavut
Office of the Superintendent of Securities, Service Newfoundland and Labrador
Office of the Yukon Superintendent of Securities
Prince Edward Island Office of the Superintendent of Securities
The New SRO operates under Recognition Orders from the provincial and territorial securities commissions that make up the Canadian Securities Administrators (CSA). The New SRO is the national self-regulatory organization for firms that are registered as investment dealers and mutual fund dealers in Canada. In addition, it oversees all trading activity on debt and equity marketplaces in Canada.
The New SRO carries out its regulatory responsibilities through setting and enforcing:
CIPF regularly participates in the Canadian Financial Services Insolvency Protection Forum. This Forum includes organizations that provide consumer protection in the event of a failure of a Canadian financial institution such as a bank or trust company, a credit union, an investment dealer, a mutual fund dealer, a life insurance company or a property and casualty insurance company.
This group meets annually to address issues of common interest and share best practices. These meetings also help ensure ongoing communication in the event of an insolvency affecting more than one compensation plan.
In partnership with several of the other Canadian compensation funds, CIPF sponsors a web portal, www.financeprotection.ca, to assist consumers with questions about financial compensation.
Reflecting the global nature of the investment industry, CIPF works collaboratively with counterparts around the world to enhance its ability to protect the investing public. To that end, CIPF has entered into agreements with similar protection funds in other countries to further protect investors by providing a framework for addressing cross-border cases of brokerage firm insolvencies.
The agreements – called memoranda of understanding – typically detail the level of cooperation when dealing with investor claims for compensation as a result of cross-border insolvencies of member firms. They also encourage the exchange of information on a regular basis regarding the nature, role and experience of the organizations.
CIPF has entered into memoranda of understanding with the following protection funds: