Investor Protection Funds
The OSC oversees the operation of approved investor protection funds, which may compensate investors for losses in the event of the bankruptcy of an investment dealer or a mutual fund dealer.
Approved investor protection funds only cover customer losses resulting from a dealer’s failure to return customer property because of a bankruptcy; they do not cover losses resulting from the changing market value of securities, unsuitable investments, or the default by an issuer of securities.
The OSC has approved, and oversees, two investor protection funds:
Canadian Investor Protection Fund (CIPF)
CIPF is the approved investor protection fund sponsored by investment dealers who are members of the Investment Industry Regulatory Organization of Canada (IIROC).Notice of Commission Approval: Amendments to CIPF By-law No. 1
Memorandum of Understanding between CIPF and the CSA
For details of CIPF’s coverage of customer losses, please visit CIPF’s website.
MFDA Investor Protection Corporation (MFDA IPC)
MFDA IPC is the approved investor protection fund sponsored by mutual fund dealers who are members of the Mutual Fund Dealers Association of Canada (MFDA).Notice of Commission Approval: MFDA Investor Protection Corporation – Variation and Restatement of Approval Order
For details of MFDA IPC’s coverage of customer losses, please visit MFDA’s website.