November 22, 2013 12:00 am | Author: investright
Last month, we attended the Kamloops Fall Home Show. Many people came by to say hello, and we had a lot of great feedback on our advertising campaign. We also had many interesting conversations with people over the two days we were there, and we answered many excellent questions.
I am writing this post to highlight a few questions that people asked us more than once at the show. I hope you will find it helpful. I also encourage you to comment below if you have other questions that you would like answered in future blog pots.
How much insurance is there on my investment account?
In speaking with some people, there seemed to be confusion about what the Canadian Investor Protection Fund (CIPF) covers. Many people mentioned $100,000 coverage of their account. This is not CIPF coverage. It is Canadian Deposit Insurance Coverage (CDIC), which insures most – but not all – savings. You can find more information on CDIC coverage on its webpage: What is covered, and What’s Not webpage.
CIPF coverage is different. It covers investment accounts. When you open an account with a CIPF member, you may be eligible for $1 million in coverage if you suffer loss because your investment dealer becomes insolvent. You can find out more CIPF coverage on its webpage: What Coverage Does CIFP provide?
It is important to understand this, because I talked to people who had two investment accounts due to the fact they thought they only had $100,000 in coverage. I told them this was not the case, and that they should be letting their financial advisor know that they had more than one account.
How do I check to see if a financial advisor is registered?
This is a question we are often asked at our seminars and when we attend events. To check registration, you should go to the National Registration Search. You can search by individual or firm to check registration. There is also good page the Canadian Securities Administrators created that has a couple of tools you can use while doing your search – the Check Before You Invest workbook and a guide to understanding registration. We also updated the advisor section of InvestRight last month to include more information about registration and designations.
What happens if I report a suspected investment fraud?
BCSC Inquiries answers e-mails and phone calls daily and can be reached at email@example.com or 1-800-373-6393. They answer calls between 8:30 a.m. and 4 p.m., Monday through Friday. This chart shows how securities regulators handle complaints, and how a complaint can become an enforcement case. Remember, if you suspect an investment fraud, report it immediately. You may save a friend, family member, or someone in your community from a financial loss.