The Canadian Investor Protection Fund (CIPF) provides limited protection for property held by a member firm on behalf of an eligible client, if the member firm becomes insolvent. Member firms are investment dealers that are members of IIROC (Investment Industry Regulatory Organization of Canada). These investment firms are also automatically members of CIPF.
CIPF coverage is custodial in nature. CIPF does not provide protection against any other type of risk or loss. If you have an account with a member firm, and that firm becomes insolvent, CIPF works to ensure that any property being held for you by the firm at that time is given back to you, within certain limits. Client property can include securities and cash. In certain circumstances, CIPF’s role may involve requesting the appointment of a trustee in bankruptcy.
The total coverage is as follows:
$1 million for all general accounts combined (such as cash accounts, margin accounts and TFSAs), plus
$1 million for all registered retirement accounts combined (such as RRSPs, RRIFs and LIFs), plus
$1 million for all registered education savings plans (RESPs) combined where the client is the subscriber of the plan.
Novak Private Wealth Counsel works under the Member Firm 'Industrial Alliance Securities Inc'. You can search their active status by visiting the CIPF Member Directory and searching 'Industrial Alliance Securities Inc.'. All clients of Novak Private Wealth Counsel have CIPF coverage under Industrial Alliance Securities Inc. Click here to visit the CIPF Home Page.
*This is the same level of investor protection offered when investing directly with one of the major banks in Canada (RBC, CIBC, TD, BMO, & Scotiabank)