With the Canadian Investor Protection Fund (CIPF), you are protected if your investment dealer becomes insolvent.
FirstOntario Investments utilizes credit union system-owned investment dealer Credential Securities Inc. to provide investment advisory services. Credential Securities Inc. is a member of the Canadian Investor Protection Fund. Customers’ accounts are protected by the Canadian Investor Protection Fund within specified limits. A brochure describing the nature and limits of coverage is available upon request. For more detail, please visit the CIPF website at www.cipf.ca.
You, the investor, pay no fees for CIPF protection. Coverage is automatic when you open an account with an investment dealer that’s a Member of CIPF. Each investment dealer contributes a substantial fund which CIPF maintains. CIPF determines the size of the fund and the amount that each investment dealer has to contribute.
The limit is $1,000,000 CDN for any combination of cash and securities. Most investors will have two accounts – a general account and a retirement account – that are each eligible for $1,000,000 coverage.
If an investor has several general accounts, such as cash, margin and $US, they are combined into one account for coverage purposes. Similarly, retirement accounts, such as your registered retirement saving plan (RRSP), registered retirement income fund (RRIF), life income fund (LIF) and locked-in retirement account (LIRA), are combined into one account for coverage purposes.
If you have other types of accounts, you’ll want to review the information on the CIPF website as it will help you to determine which of your accounts would be combined. CIPF doesn’t cover losses from market fluctuations, or from the bankruptcy of an issuer of a security or deposit instrument held in your account, no matter how drastic or unfortunate.
The $1,000,000 limit applies to your shortfall, which in most cases will be substantially less than the value of your account. For an example, please visit the CIPF website.
Generally, investors don’t have to file individual claims as your monthly statement is considered your claim. Any additional information you’ll need will be available on the CIPF website or you can contact CIPF directly. In most cases, your account will be moved to another investment dealer where you can access it. Alternatively, CIPF may deliver the contents or value of your account to you. To the extent there is an eligible loss, each claim is considered according to the coverage policies adopted. It’s important to remember that you’re only covered if your losses result from the insolvency of a CIPF Member. To view the coverage policies, please visit the CIPF website.