CIPF Full Form

What is the Full Form of CIPF?

The full form of CIPF is “Canadian Investor Protection Fund”. It is a finance category firm. It is situated in Toronto, Ontario. It is an approved protection fund sponsored by IIROC (Investment Industry Regulatory Organization of Canada) members, who are investment dealers. It provides coverage to the eligible members of IIROC in case of insolvency within the predecided limits. If a member firm does not have enough money to pay, it cannot carry on the security holding function, cash or property for its clients. Then, this function is transferred to another firm.

History Of CIPF

• In 1969, CIPF was known as NCF(National Contingency Fund). An agreement and declaration of trust between several Self-Regulatory Organizations established it.

• In 1990, the fund’s name was changed from NCF to CIPF. It also formally defined coverage limits for clients for the first time.

• In 1991, CIPF and CSA(Canadian Securities Administration) formalised their relationship.

• In 1997, the amendment of the Bankruptcy and Insolvency Act of Canada was included.

• In 2002, It became a non-share organisation, and between SROs and CIPF, an industry agreement was established by replacing the Agreement and Declaration of trust.

• In 2008, the CIPF’s responsibilities and the regulation of investment dealers in Canada were realigned.

What Does CIPF Covers And What Not?

• CIPF covers Missing Property which includes cash, securities, futures contracts and segregated insurance funds.

• CIPF does not cover losses resulting from fraud, a drop in the value of your investment, misleading information etc.

• CIPF does not cover securities directly held by you, crypto assets, mutual funds, etc.