Complete guide to CIPF (Canadian Investor Protection Fund) coverage for the CIRE exam. Understand what's covered, limits, and how to explain it to clients.
What is CIPF?
The Canadian Investor Protection Fund (CIPF) protects investors if a CIRO member firm becomes insolvent. Understanding CIPF coverage is essential for the CIRE exam and client discussions.
Coverage Basics
What CIPF Covers
- Securities and cash held by member firms
- Protection if firm becomes insolvent
- Missing property due to insolvency
What CIPF Does NOT Cover
- Market losses on investments
- Unsuitable investment recommendations
- Fraud by individual advisors
- Products held directly (not through member)
Coverage Limits
Per Account Category
- General accounts: $1 million
- Registered retirement accounts: $1 million (combined)
- Registered education savings plans: $1 million
- Tax-free savings accounts: $1 million
Important Notes
- Limits are per customer, per member firm
- Joint accounts have separate coverage
- Corporate accounts covered separately from personal
How CIPF Works
Claim Process
- Member firm insolvency declared
- Trustee appointed to handle assets
- CIPF assesses missing property
- Claims processed and paid
Comparison with CDIC
| Feature | CIPF | CDIC |
|---|---|---|
| Covers | Securities at dealers | Deposits at banks |
| Limit | $1M per category | $100K per category |
| Protection From | Firm insolvency | Bank failure |
Client Disclosure Requirements
- Inform clients about CIPF coverage
- Include in relationship disclosure
- Clarify what is and isn't covered
- Direct clients to CIPF resources
Key Exam Topics
- Coverage limits by account type
- What is and isn't covered
- CIPF vs. CDIC differences
- Disclosure requirements
- Client communication about protection
Tags:CIPF protectioninvestor safetyCIRE exam