What Does this Mean?
CIPF’s mandate is to provide protection to customers of New Self-Regulatory Organization of Canada (New SRO) Members who have suffered or may suffer financial losses as a result of the insolvency of the New SRO Member, all on such terms and conditions as may be determined by CIPF in its sole discretion and, in connection with such coverage, to engage in risk management activities to minimize the likelihood of such losses. 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 member firm so that clients can access their accounts.
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:
For further information on the nature of CIPF protection, see What Does CIPF Cover?