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Canadian Securities Course (CSC) Practice Exam · Question

What is the primary purpose of the Canadian Investor Protection Fund (CIPF)?

The CIPF provides protection to eligible clients of CIRO member firms if a firm becomes insolvent, up to specified limits, ensuring the return of client assets

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Question: What is the primary purpose of the Canadian Investor Protection Fund (CIPF)?

Answer options:

  • To guarantee a minimum return on all investments.
  • To protect investors against losses resulting from market fluctuations. ✅ To protect clients against losses if a CIRO member firm becomes insolvent.
  • To regulate the conduct of investment advisors.

Correct answer: To protect clients against losses if a CIRO member firm becomes insolvent.

Explanation: The CIPF provides protection to eligible clients of CIRO member firms if a firm becomes insolvent, up to specified limits, ensuring the return of client assets and cash.

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