Investment Advisors Canadian Investor Protection Fund English franais Investment Advisors | Members AAA Menu Home About Us CIPF’s Mandate The Segregated Funds Governance Affiliations History of CIPF Careers CIPF Coverage About CIPF Coverage When a Member is Insolvent Case Studies Coverage Policy Claims Procedures Recent Past Insolvencies Member Directory CIPF Investment Dealer Member Firms CIPF Mutual Fund Dealer Member Firms Past CIPF Member Firms News & Publications FAQs Contact Us Search Search When autocomplete results are available use up and down arrows to review and enter to select. Investment Advisors Facebook Twitter Linkedin Investment Advisors Many investors are unaware of the significant benefits of CIPF Coverage when a member firm fails. Do you need IIROC Compliance Continuing Education (CE) Credits? To help individuals employed by investment dealers learn more about CIPF, CIPF has developed the following webcasts, which qualifies for Compliance CE Credits: “Overview of Canadian Investor Protection Fund (CIPF)”: This webcast includes an interview with Rozanne Reszel, former President and CEO of CIPF, reviewing key questions about CIPF. This webcast is IIROC accredited and qualifies for 0.5 hours of Compliance CE credits. To register click here. “CIPF and CDIC: Coverage and Disclosure”: This webcast provide an overview of CIPF and CDIC. This webcast is IIROC accredited and qualifies for 1.0 hours of Compliance CE credits. To register click here. CIPF Coverage For detailed information regarding how our coverage works, you can also refer to these links: FAQs and CIPF Coverage. CIPF has also launched the CIPF Advisor Series. This Resource Centre provides online materials to educate and inform advisors about CIPF’s role in the Canadian financial system. Allocation of Losses to Customers CIPF's coverage is determined after all available assets of the insolvent member firm are returned to customers by a trustee/receiver. For bankruptcies of a member firm administered under Part XII of the Bankruptcy and Insolvency Act (Canada), the process of returning all available assets of the member firm to customers is generally done by a trustee using the 4-steps outlined below. At the date of insolvency, CIPF or the trustee/receiver will determine the TOTAL CLIENT NET EQUITY, and the size of the CUSTOMER POOL. and CIPF/trustee will then determine EITHER: OR CIPF/trustee will calculate the SHORTFALL, if there is one, as: SHORTFALL = TOTAL CLIENT EQUITY less CUSTOMER POOL CIPF/trustee will allocate the SHORTFALL to each customer in proportion to their claim for net equity. HERE IS AN EXAMPLE: CIPF/trustee determines the following: TOTAL CLIENT NET EQUITY $2.0 BILLION CUSTOMER POOL $1.9 BILLION SHORTFALL $100 MILLION or 5% (100 million / $2 billion) CLIENT 1 HAS CLIENT NET EQUITY OF $2 MILLION: LOSS ALLOCATED = $100,000 (5% OF $2 MILLION) CIPF COVERAGE = $1 MILLION LOSS TO CUSTOMER = NIL CLIENT 2 HAS CLIENT NET EQUITY OF $20 MILLION: LOSS ALLOCATED = $1,000,000 (5% OF $20 MILLION) CIPF COVERAGE = $1 MILLION LOSS TO CUSTOMER = NIL CLIENT 3 HAS CLIENT NET EQUITY OF $25 MILLION: LOSS ALLOCATED = $1,250,000 (5% OF $25 MILLION) CIPF COVERAGE= $1 MILLION LOSS TO CUSTOMER NOT COVERED BY CIPF= $250,000 This example is for illustrative purposes and each insolvency can produce different results. For more information, please refer to the CIPF Coverage Policy. View Case Studies Have a Question? Just Ask! ASK US About Us CIPF’s Mandate The Segregated Funds Governance Affiliations History of CIPF Careers CIPF Coverage About CIPF Coverage Case Studies Coverage Policy Claims Procedures Recent Past Insolvencies Facebook Twitter Linkedin All Rights Reserved. Copyright 2026 CIPF Glossary | Legal Notices | Sitemap | Accessibility | Privacy Policy Please select your language of preference to continue veuillez sélectionner votre langue de préférence pour continuer English Français CIPF uses cookies to enhance convenience and use of its website. By clicking “OK” or by continuing to browse this website, you agree to the use of the cookies. To find out more, please visit our Privacy Policy. OK Top of Page