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The Canadian Investor Protection Fund (CIPF) was formed in 1969 and in 2019, CIPF celebrated its 50th anniversary. In this interview with Rozanne Reszel, President and CEO at CIPF, we learn more about the role of CIPF and its mandate. We also dispel some common misconceptions that have proliferated along its 50-year history.

Who is CIPF? 5 Quick Facts

What is CIPF’s mission?

CIPF’s mission is to contribute to the security and confidence of customers (also referred to as clients) of our member firms.

How does CIPF do this?

By maintaining adequate sources of funds to return missing property to eligible customers in cases where a CIPF member firm becomes insolvent.

What do you mean by “property?”

Client property is comprised of securities, cash, and other property held by member firms, on behalf of clients.

What do you mean by “member firms”?

Member firms are investment dealers that are members of the Investment Industry Regulatory Organization of Canada (IIROC). These investment firms are automatically members of CIPF.

What does CIPF protect?

CIPF provides protection if property being held by a member firm on a client’s behalf is not returned to the client following the firm’s insolvency.

We don’t protect against market losses, we return missing property.

Rozanne Reszel

Most Common Myths About CIPF

Myth 1: CIPF protects against market losses.

When you buy an individual security, that investment can go up and it can go down. When it goes down, that loss is a market loss, and that’s not something CIPF protects against. CIPF returns missing client property.

Myth 2: CIPF protects against the failure of an issuer of a security.

If you own stock in a particular company (the issuing company), and this issuing company experiences a terrible event, and as a result becomes insolvent, this is not a loss covered by CIPF. CIPF only returns property when a CIPF member firm becomes insolvent, not if the issuing company fails.


Investors often make the mistake of assuming CIPF operates like the Canada Deposit Insurance Corporation (CDIC). How can we easily differentiate between the two for investors?


  • An industry-sponsored organization that does not have a government backstop.
  • CIPF members are investment dealers.
  • Provides protection by ensuring that clients receive their property held by a member firm in the event of a member firm’s failure. Client property can include securities and cash.


  • A federal Crown corporation.
  • CDIC members are banks, loan and trust companies, and other financial institutions.
  • Provides protection against the loss of eligible deposits at its member institutions in the event of failure. Eligible deposits include savings and chequing accounts, and guaranteed investment certificates (GICs).

Closing Thoughts

Our purpose will always be very clear, and that is to return missing property if a member firm fails. CIPF is committed to communicating with investors to increase awareness about our role and to foster confidence in dealing with the industry.

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