CIPF’s mandate was established by Canada’s provincial and territorial securities regulators. CIPF is authorized to provide protection within prescribed limits to eligible clients of member firms suffering losses if client property comprising
cash, and other propertyheld
by such member firms is unavailable as a result of the insolvency of the member firm.
What Does this Mean?
CIPF‘s mandate is to provide protection if property being held by a member firm on a client’s behalf is not returned to the client following the firm’s insolvency. In practical terms, if a member firm becomes insolvent, it can no longer
carry on the function of holding securities, cash or other property for its clients. As a result, it is generally necessary to transfer this function to another firm. Client accounts may be moved to another investment firm so that clients can access
It is not within CIPF’s mandate to provide investor protection against any other type of risk or loss. CIPF’s mandate neither guarantees nor protects the value of a security. In addition, CIPF’s mandate does not extend to providing protection
against losses resulting from any of the following:
investments that were not suitable for a client
fraudulent or other misrepresentations that were made to a client
misleading information that was given to a client
important information that was not disclosed to a client