In this article:
Overview
Protecting our clients' assets is our top priority. As a client of Wealthsimple, you're entitled to insurance coverage ensuring that your money stays your money.
Here are the different types of coverage we offer for our products to help keep your assets safe.
Wealthsimple managed and trading accounts
For Wealthsimple investing clients, Wealthsimple Investments Inc. is a member of the Canadian Investment Regulatory Organization (CIRO). Customers' accounts are protected by the Canadian Investor Protection Fund's (CIPF) Investment Dealer Fund in accordance with its Coverage Policy. A brochure describing the scope and nature of coverage, as well as the limitations and exclusions of coverage, is available upon request or at www.cipf.ca.
In the extremely unlikely event that Wealthsimple were to go out of business, your account would remain safe. All securities are beneficially held under your name, which means you could choose to keep your money with Wealthsimple Investments Inc. or transfer it to a new advisor or your bank account.
Wealthsimple Crypto accounts
We hold your crypto in trust, which means in the unlikely event something happens to us, your crypto is protected. This is because property held in trust is protected from claims by creditors.
We hold the majority of our clients' crypto with regulated third-party custodians that specialize in crypto custody and have appropriate insurance and sufficient capital. This reduces risk for all our crypto clients.
Our affiliated custodial broker for crypto clients, Wealthsimple Investments Inc., is a member of CIRO, which means the cash balance held within customer accounts is protected by CIPF within specified limits. Learn more about CIPF.
Wealthsimple chequing accounts
For individual and joint Wealthsimple chequing accounts, any balance in your account(s) is held in trust for you with members of the Canada Deposit Insurance Corporation (CDIC), a federal Crown corporation. CDIC protects eligible deposits held at CDIC member institutions in case of a member institution's failure.
We've partnered with several CDIC-member, regulated Canadian financial institutions to offer our clients up to $1,000,000 CAD in combined CDIC-eligible coverage on their chequing accounts.
This means that we hold our clients' chequing account balances over $100,000 CAD in trust with multiple members of CDIC, allowing the extension of coverage to funds in your chequing account for up to $1,000,000 CAD, against the failure of any of Wealthsimple's partner banks.
Although Wealthsimple isn't a CDIC member institution, under the trust framework, CDIC insures eligible cash balances up to $100,000 CAD per beneficiary, per member institution, provided certain disclosure rules are met.
For chequing account holders, Wealthsimple may spread client funds across multiple CDIC members to extend CDIC coverage to up to $1,000,000 CAD for eligible deposits. Coverage is free and automatic.
You can find full details about our regulated products, entities, and coverage on our legal disclosures page.
Wealthsimple Corporate Save and Business chequing accounts
For Wealthsimple Corporate Save and Business chequing account(s), combined balances up to $100,000 CAD per business are covered by CDIC in partnership with CDIC-member, regulated Canadian financial institutions.
Wealthsimple Registered Savings Account
All cash balances from your Wealthsimple Registered Savings Account(s) are held in trust for you with members of CDIC.
CDIC insures cash balances up to $100,000 CAD per beneficiary (account holder), per category, in case of a member institution's failure. This is calculated based on the combined total of all Registered Savings Accounts you open. Wealthsimple isn't a CDIC member.
Wealthsimple Savings account
Your Wealthsimple Savings account is held through Wealthsimple Investments Inc., a member of CIRO. Cash balances in your Savings account are protected by CIPF for up to $1,000,000 CAD. Savings accounts aren't covered by CDIC.
Coverage is automatic. You don't need to register or apply.
Frequently asked questions
My bank only insures my accounts up to $100,000 CAD. How can you offer $1,000,000 CAD in coverage?
We partner with CDIC-member, regulated Canadian financial institutions to take advantage of a combined CDIC-eligible coverage amount (up to $1,000,000 CAD). Instead of holding your funds in trust at one partner institution, we spread funds across multiple institutions to increase your coverage.
What's the difference between CIPF and CDIC coverage?
CIPF and CDIC are two separate protection programs that cover different Wealthsimple products:
- CDIC covers eligible cash deposits held at CDIC member institutions. At Wealthsimple, this applies to your chequing account (up to $1,000,000 CAD combined across partner banks) and your Registered Savings Account (up to $100,000 CAD).
- CIPF protects client assets held at CIRO member firms in the event of firm insolvency. At Wealthsimple, this applies to your investing accounts (managed and Wealthsimple Trade) and your Savings account (up to $1,000,000 CAD).
CIPF and CDIC coverage are independent of each other; an account will only be covered by CIPF or CDIC, never both.
Since Wealthsimple isn't a bank, how are you insuring me?
As a client of Wealthsimple, you're entitled to insurance coverage so that your money stays your money. Although Wealthsimple isn't a bank, we partner with several CDIC-member, regulated Canadian financial institutions to take advantage of a combined CDIC-eligible coverage amount (up to $1,000,000 CAD), available to Wealthsimple chequing clients. Wealthsimple chequing deposits over $100,000 CAD are held in trust with these Canadian banks, resulting in increased coverage on eligible deposits.
What happens if Wealthsimple goes out of business?
In the improbable event that Wealthsimple goes out of business, client funds would be recovered in accordance with Canadian bankruptcy laws and proceedings.
Which partner banks does Wealthsimple use for chequing account balances?
We partner with CDIC-member, regulated Canadian financial institutions. For contractual reasons, we can't disclose the names of the partners we use.
How are the funds in my chequing account split between the partner banks?
The funds are split to maximize your eligible CDIC coverage.
What if my chequing balance exceeds $1,000,000 CAD?
Any amounts over your CDIC coverage aren't eligible for additional coverage. If your total balance across your chequing accounts exceeds your CDIC coverage, we recommend that you speak to one of our Portfolio Managers. Our Portfolio Managers are on hand to offer financial advice at any stage, and they're best positioned to advise on alternative options for your excess cash.
How does coverage work for a joint chequing account?
The funds in a joint chequing account are covered under the client who opened the account (the "inviter").
For example, client A (the "inviter") has $100,000 CAD in their individual chequing account and $1,000,000 CAD in their joint chequing account with client B. $1,000,000 CAD of their total balance across their chequing accounts is eligible for CDIC coverage, which means that the leftover $100,000 CAD isn't covered (regardless of how much client B has in their other chequing accounts).
How does CDIC coverage work for businesses?
Every business receives up to a combined $100,000 CAD of CDIC coverage on their Business chequing and Corporate Save deposits. In the improbable event that Wealthsimple goes out of business, this amount would be paid out to the business entity in accordance with Canadian bankruptcy laws and proceedings.
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Terms and conditions
Wealthsimple chequing accounts are offered by Wealthsimple Investments Inc. ("WSII"), a member of the Canadian Investment Regulatory Organization ("CIRO"), and Wealthsimple Payments Inc. ("WSP"), a FINTRAC registered money services business. WSP has appointed WSII as its agent to perform certain payment activities offered through the chequing account(s). The funds added to chequing account(s) (the "Funds") are ultimately held securely in trust in the name of the primary account holder with a single or multiple members of the Canada Deposit Insurance Corporation ("CDIC"). CDIC protects eligible deposits held at CDIC member institutions in case of a member institution's failure. WSP and WSII are not CDIC member institutions. Under the trust framework, CDIC insures eligible cash balances up to $100,000 per beneficiary, per member institution, provided certain disclosure rules are met. Coverage is free and automatic. Learn more about how CDIC protection works. Funds must be spread across at least 10 CDIC member institutions in order for up to $1,000,000 in deposits to benefit from applicable CDIC coverage. The advertised interest rate for the chequing account is derived from interest earned by Wealthsimple on the funds. The rates are annualized rates, calculated daily, and paid monthly. Subject to change. For more information see here. The Funds are settled with any CDIC member(s) one business day following the date that Funds are reflected in the Account.
The Wealthsimple Prepaid Mastercard® (the "Card") is issued by KOHO Financial Inc. pursuant to license by Mastercard International Incorporated. All terms applicable to the Card and all applicable fees and transaction limits with respect to the Card and the services may be found in the Wealthsimple Cardholder Agreement between you and KOHO Financial Inc. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.
The Wealthsimple Visa Platinum* Prepaid Card (the "Card") is issued under license by WSP. Use of the Card is subject to the Wealthsimple Visa Prepaid Cardholder Agreement.
*Trademark of Visa Int., used under license.
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