Full name: Canadian Investor Protection Fund
Short name: the CIPF
Year of establishment: 1969
Status: investor protection fund
Canadian investor protection fund is one of the oldest structures in the area of Finance, formed in 1969. The department is in charge of monitoring organizations operating in the financial markets.
The list of organizations controlled by the CIPF may include investment organizations and funds, forex brokers, companies operating on stock exchanges, binary options brokers.
The main activity of the Fund is the insurance of investments of clients of companies, which in turn are members of the IIROC (Investment Regulatory Organization of Canada). An insured event occurs at the moment when a shortage of funds is found on the accounts of the controlled company during the audit, which may lead to the company failing to fulfill its direct obligations to investors. The amount of insurance can reach $ 1 million (part of this amount is provided with real funds, and part is made up of securities).
In addition to insurance, the CIPF has the following powers:
To inform the investors of the reporting companies about possible changes in their financial policies.
Resolution of disputes between a company and its client, based on complaints and evidence submitted by the investor.
The official website of the CIPF has a list of reporting companies as well as those who are not members of the Fund. It is quite easy to check the license of the company of interest. But there is no detailed information about each company - only the broker's website is freely available. The same applies to companies on the Foundation's Black List.
Nevertheless, the Fund regularly publishes information about unscrupulous companies and the reasons for their withdrawal from membership, so anyone who wishes in the public domain can clarify the details of interest.
Now for the resolution of disputes. Close cooperation of the CIPF with IIROC involves filing complaints to the address of the second department. It is the Investment Regulatory Organization of Canada that receives complaints and claims from dissatisfied clients of companies and decides on the future fate of an unscrupulous broker or other financial institution. The point is that the CIPF is not a regulatory body and does not have the appropriate powers.
The CIPF is a non-profit agency with government support. The structure is financed not only by the state, the Fund also accepts contributions from participating companies.
Every year CIPF is required to submit reports to the Treasury of Canada on the performed inspections of the reporting companies, as well as submits financial statements on the funds used. But, since CIPF is not a financial regulator, but has government support, and also inspires investor confidence, the level of reliability of this organization can be attributed to the average.
Address: Canadian Investor Protection Fund First Canadian Place, 100 King Street West Suite 2610, PO Box 481, Toronto, Canada