Are Your Investments Safe in Canada?

When you invest in stocks, bonds, mutual funds, or ETFs through a Canadian brokerage, your biggest worry is usually the market’s next move. But what if your investment dealer itself fails? Enter the Canadian Investor Protection Fund (CIPF)—the crucial safety net every investor should know about.

What Is CIPF?

CIPF is a non-profit organization, completely separate from the government and the dealers themselves. It steps in only if your brokerage or mutual fund dealer becomes insolvent, making sure your eligible assets aren’t lost in the chaos.

How Does CIPF Protect You?

• Up to $1 million coverage per account category (such as cash accounts, RRSP/TFSA, margin accounts), per firm.

• Some investors will qualify for multiple layers of coverage if they hold different account types at the same firm.

This means if your brokerage goes under, CIPF helps return your cash and investments—or their equivalent value—promptly, up to the coverage limit per category.

What’s Not Covered?

It’s important to know what CIPF doesn’t protect:

• Losses due to falling stock prices or bad investment choices

• Fraud or theft by individuals (unless linked to dealer insolvency)

• Non-securities like insurance policies (covered by Assuris) or GICs (covered by CDIC)

CIPF is your backup for operational risks, not market risks.

How It Works

Imagine the unthinkable: your brokerage closes and your stocks, bonds, or cash seem to vanish. CIPF jumps in, verifies your account, and arranges for your assets (or their cash value) to be restored, up to $1 million per category. More in different registered or margin accounts? Each can be protected separately.

Automatic and Free for Investors

There’s no application needed. If you invest with a CIPF member firm (check your dealer’s website or the CIPF list), coverage is included automatically. See a list of CIPF members here to confirm that your investments are protected.

Bottom line: CIPF means Canadian retail investors can invest with confidence. If the worst happens and your dealer folds, your assets are protected—giving you one more reason to relax and invest for what matters.

If you need help investing your money instead of just keeping it in a Bank to earn meager interest, Let’s Talk. I help clients across Canada build sustainable financial plans rooted in clarity and confidence.

Related blogs:

1. https://www.wealthycanadian101.com/post/world-financial-planning-day-empowering-your-financial-future-1

2. https://www.wealthycanadian101.com/post/managing-finances-during-major-life-events

3. https://www.wealthycanadian101.com/post/are-canadians-feeling-financially-pressured

4. https://www.cipf.ca/news-publications/-in-tags/tags/podcasts-and-videos/