Client Account Protection
How Are Your Funds Protected?
We protect the investments entrusted to us in several ways.
PI Financial Corp. ("PI") abides by the strict rules of conduct set out by the various organizations governing investment dealers in Canada. Protecting your assets is our top priority and we assure this protection in two additional ways: through asset segregation, and by means of an industry-funded protection fund.
The term "segregation" refers to the physical location where we safeguard securities on behalf of our clients. Fully paid securities are literally kept separate from all other securities held by the firm. In the very unlikely event that PI were to become insolvent, its creditors would have no legal claim to your fully paid securities. Sophisticated accounting methods and regular audits by independent firms ensure compliance with this fundamental rule.
Canadian Investor Protection Fund
Because we are a member of the Investment Industry Regulatory Organization of Canada, all funds invested with us are covered by the Canadian Investor Protection Fund ("CIPF"), which protects the public in case of the insolvency or bankruptcy of a member firm. The CIPF guarantees your general accounts up to $1 million. Separate coverage of $1 million also applies to your combined registered retirement accounts (RSP, RIF, LIRA, LIF). Certain other types of accounts (ESP, trust, etc.) also benefit from their own separate $1 million coverage. For more details on the subject, please consult the Canadian Investor Protection Fund brochure, available from any PI Financial Corp. Investment Advisor or refer to the CIPF website (http://www.cipf.ca).
Of course, fixed-income securities, such as bonds, stripped bonds and Treasury bills, are fully and unconditionally guaranteed when held to maturity (both in terms of their rate of return and value at maturity) if they are issued by a government or government agency. Remember, however, that the value of all other securities, such as stocks or mutual funds, is subject to market fluctuations and therefore not guaranteed.
Securities held at PI are protected at all times from insurable risks such as fire, theft and fraud. In addition, all security positions are audited annually by independent auditors on behalf of the regulatory authorities.