Three types of public investment protection are offered to Canadians: the Canadian Investor Protection Fund (”CIPF”) coverage for Investment Industry Regulatory Organization of Canada (”IIROC”) Members, Canada Deposit Insurance Corporation (”CDIC”) coverage for banks, and Investor Protection Corporation (”IPC”) coverage for Mutual Fund Dealers Association of Canada (”MFDA”) Members.

Burgeonvest Bick is a Memeber of IIROC and client accounts are protected by CIPF (see the following discussion of “CIPF” coverage).

CIPF, CDIC, and IPC insurance coverage programs protect investments held by respective insured Member corporations against the insolvency of those Member corporations. Note that CIPF and IPC only insure investments held at Securities Dealers and Mutual Fund Dealers respectively (known as “on book” holdings) against the possible insolvency of a Member company.  In cases where client investments are held directly at mutual fund management companies in client name (known as “off book” holdings) or other instances were investments do not track through the books and records of a Member, there is no CIPF or IPC coverage.

Neither CIPF nor IPC protect client investments against realized market losses and market volatility.

Theft by a rogue advisor or employee (”Rogue Risk”) is not covered by CIPF nor IPC if clients hold investments “off Book”. The most frequent example of Rogue Risk occurs if an investor has made a cheque(s) payable directly to an advisor or employee.   Other examples of Rogue Risk would be fraudulent sales of investments, or fraudulent conveyance of legitimate investments held “off book”.

There should never be a reason to make a cheque payable directly to an advisor or employee. Cheques must be made payable to Burgeonvest Bick Securities Limited only. In the same regard, a client should never make a loan to an investment advisor under any circumstance, nor make investments outside of the books and records of Burgeonvest Bick. These simple measures will effectively protect against Rogue Risk.

As a further measure to protect against Rogue Risk, Investment Dealers may purchase optional amounts of private insurance known as Financial Institution Bond (”FIB”) which protects clients against a number of Rogue Risks such as Fidelity, Forgery, in Transit, and Securities Fraud.  Burgeonvest Bick maintains $5 million of FIB insurance coverage per insurable event.

Clients can defend against Rogue Risk by opening and examining every investment statement received. These are statements produced and mailed by NBCN Inc (our securities Custodian and Settlement Agent under an IIROC compliant Carrying Broker Agreement).  IIROC requires Burgeonvest Bick issue a monthly statement of account to every client when there is activity in an account.  Statements are issued on a quarterly basis if there are no transactions over that period.

Burgeonvest Bick clients also receive confirmations for every investment made.  These are also produced and mailed directly from NBCN Inc and reflect every purchase, sale, switch or transfer in an account and are fully indemnified by NBCN Inc for accuracy under the Carrying Broker Agreement.  It is important that investors pay attention to all confirmation slips and statements in order to confirm the accuracy and legitamacy of all investments transacted.

If any statement or confirmation does not match your expectations , or you do not receive a statement or confirmation for an investment instruction, or your investment instructions have not been executed properly, immediately contact the Compliance Department at Burgeonvest Bick Head Office. The contact information for Head Office is provided in the “Contact Us” section of this website.

National Bank Correspondence Network (”NBCN”)

NBCN is a wholly owned subsidiary of National Bank Financial.   The sole business of NBCN is to provide clearing and brokerage services to independent securities firms, National Bank Financial, financial planning firms, investment counsellors, and money managers.

At present, there are over 100 independent financial service firms with NBCN entrusting over $47 billion in assets under custody and administration.

Financial Strength

NBCN is part of the National Bank of Canada Group and a subsidiary of National Bank Financial. With a strong capital base of over $5.3 billion, National Bank of Canada is Canada’s sixth largest bank and its investment dealer subsidiary, National Bank Financial, is one of Canada’s largest full service investment dealers with over $500 million in working capital

Your Investments are Indemnified by NBCN Inc

The safety and protection of your investment assets are of utmost importance. Consequently, Burgeonvest Bick has contracted with National Bank Correspondent Network (NBCN Inc) as a Type 2 Introducing Broker whereby NBCN Inc will provide an unlimited indemnity for the value of accounts held through NBCN Inc’s custody.  This protection is in addition to coverage provided by CIPF.
NBCN Inc. does not cover loss from changing market values regardless of the cause of such loss.

Canadian Investor Protection Fund (”CIPF”)

CIPF was established by the Canadian investment industry to protect investors from loss of securities or money due to the unlikely insolvency of any Members of the Investment Dealers Association of Canada, now known as the Investment Industry Regulatory Organization of Canada, (”IIROC). Cash and securities in each separate account, joint accounts and registered retirement savings plans are eligible for investor account protection. Cash and securities are covered to a maximum of $1,000,000 per separate legal account. For the purposes of CIPF protection, accounts held by a customer in the same capacity or circumstances are combined into one (general) account. A customer’s proportionate share in a joint account, also, will be combined and aggregated into the general account. Please see CIPF brochure for details or visit their website – www.cipf.ca
CIPF does not cover loss from changing market values regardless of the cause of such loss.

Financial Institution Bond (FIB)

As previously discussed the primary purpose of FIB insurance is to provide investor with protection in respect of various types of Rogue Risk.   Burgeonvest Bick maintains a $5 million per insurable event coverage policy to protect each client.