Canadian Investor Protection Fund (CIPF)
A Canadian not-for-profit organization set up by the investment industry designed to protect investors from the bankruptcy of an individual investment firm.
Accounts are covered for up to $1 million in shortfall of securities, commodity and futures contracts, segregated insurance funds and cash. Shortfall is the difference between the market value of the account and what the insolvent company can return to the customer. Investopedia Says:
While investment firms rarely become insolvent, the CIPF exists to protect the investment accounts of customers.
The size of the fund's resources is close to $300 million. Related Terms:
Bankruptcy
Commodity Futures Contract
Futures Contract
Investment
Market Value
Shortfall
Solvency |