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 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?