What's the CIPF?

Andrew Goldman

Andrew Goldman has been writing for over 20 years and investing for the past 10 years. He currently writes about personal finance and investing for Wealthsimple. Andrew's past work has been published in The New York Times Magazine, Bloomberg Businessweek, New York Magazine and Wired. Television appearances include NBC's Today show as well as Fox News. Andrew holds a Bachelor of Arts (English) from the University of Texas. He and his wife Robin live in Westport, Connecticut with their two boys and a Bedlington terrier. In his spare time, he hosts “The Originals" podcast.

If a company goes bankrupt and it is a member of CIPF, you may be eligible for coverage up to specified limits if the company cannot return your money to you. It’s important to note that the financial loss must be caused by insolvency, it doesn’t cover things like losses in the stock market.

What are the pros? You don’t have to do anything. If your investment firm is a member of CIPF, you, Joe Investor, will automatically become eligible for coverage when you open an account.

Is there anything to be careful about? Always double-check with CIPF to make sure that the investment company is actually a member. Wealthsimple is not a member of CIPF, but our brokerage providers that hold your money are members.

In the unlikely event that an investment company becomes insolvent (it’s only happened 20 times in Canada since 1969) and CIPF gets involved, accounts will be frozen and it will take some time to access your money again.

And if you have just enormous piles of money invested somewhere, it may exceed CIPF’s rescue funds.

Last Updated August 21, 2018

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