The Canadian Investor Protection Fund (CIPF or the Fund), originally named the National Contingency Fund, was established as a trust by an Agreement and Declaration of Trust between several sponsoring Self-Regulatory Organizations
(SROs) at the time:
- The Canadian, Montréal, Toronto, and Vancouver Stock Exchanges, and
- The Investment Dealers Association of Canada (IDA)
The Fund’s purpose was to protect customers who suffered financial loss due to the failure of a Member firm of any one of its SROs.
The A.E. Osler insolvency was CIPF’s largest insolvency and prompted a review and restructuring by the Board and its advisors.
The Fund's name was changed to the Canadian Investor Protection Fund to more accurately reflect the Fund’s role. For the first time, coverage limits for clients were formally defined, and the composition of the Board was broadened to include public
CIPF and the Canadian Securities Administrators (CSA) formalized their relationship in a Memorandum of Understanding that defined the role
and the responsibilities of CIPF. Under this agreement, the CSA relied on CIPF to oversee the sponsoring SROs’ procedures and rules for ensuring the solvency of their members.
The Bankruptcy and Insolvency Act of Canada was amended to include Part XII, a section specific to the insolvency of securities dealers. Part XII names CIPF as a party that can apply to the court to appoint a trustee.