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CIPF: Coverage limits and categories
April 13, 2024
9:02 am
Norman1
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zgic said

Is CIPF coverage $1M per account? Meaning if you have 4 seperate accounts at Questrade (like RRSP, TFSA, Margin, LIRA), total coverage will be $4M.

No, the limit is $1 milllion per category:

Limits for Individuals

For an individual holding an account or accounts with a member firm, the limits on CIPF protection are generally as follows:

  1. $1 million for all general accounts combined (such as cash accounts, margin accounts, TFSAs and FHSAs), plus
  2. $1 million for all registered retirement accounts combined (such as RRSPs, RRIFs and LIFs), plus
  3. $1 million for all registered education savings plans (RESPs) combined where the client is the subscriber of the plan.

There are exceptions, such as where an account is held by an individual in that person’s capacity as an executor of an estate of a deceased person. For further information, see below under Limits for Testamentary Trusts.

The TFSA and margin accounts would be in category #1. TFSA and LIRA would be in category #2. Total CIPF coverage would be up to $2 million.

April 13, 2024
11:04 am
Norman1
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Norman1 said
The TFSA and margin accounts would be in category #1. TFSA and LIRA would be in category #2. Total CIPF coverage would be up to $2 million.  

That should be "The TFSA and margin accounts would be in category #1. RRSP and LIRA would be in category #2. …"

April 13, 2024
11:12 am
smayer97
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CIPF coverage is also per independently registered institution, similar to CDIC.

April 13, 2024
2:00 pm
zgic
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Norman1 said
That should be "The TFSA and margin accounts would be in category #1. RRSP and LIRA would be in category #2. …"  

Thank you so much Norman1.
So if I have similar 4 accounts at another institution like CIBC, the total would be $4M correct? Just want to confirm that it is per institution.

April 13, 2024
5:36 pm
LazyWays
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CIPF Coverage Policy, clause F2: "For the purposes of determining the maximum coverage available, the General and Separate Accounts that a Customer has with a CIRO Member will not be combined with the General and Separate Accounts that the same Customer may have with another CIRO Member, including another CIRO Member who has an introducing / carrying agreement with the first CIRO Member."

April 13, 2024
7:27 pm
smayer97
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April 13, 2024
7:33 pm
Norman1
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As LazyWays shared, there is a separate set of CIPF coverage limits for each member.

The arrangement with CIBC Investor's Edge branded accounts is that member CIBC Investor Services Inc. is the introducing broker and member CIBC World Markets Inc. is the carrying broker.

As the carrying broker, member CIBC World Markets Inc. is who legally holds and owes the clients the holdings in the CIBC Investor's Edge branded accounts.

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