Protecting our clients’ assets is our top priority. As a client of Wealthsimple, you are entitled to insurance coverage so that your money stays your money.
Here are the different types of coverage we offer by product to help keep your assets safe.
Wealthsimple Managed and DIY accounts
- For Wealthsimple investing clients, our affiliated custodial broker, Wealthsimple Investments Inc., is a member of the Canadian Investment Regulatory Organization (CIRO) and customer accounts are protected by the Canadian Investor Protection Fund within specified limits. You can learn more here. 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, have appropriate insurance and sufficient capital – in turn reducing risk for all our crypto clients.
- Our affiliated custodial broker for crypto clients, Wealthsimple Investments Inc., is a member of the Canadian Investment Regulatory Organization (CIRO) which means the cash balance held within customer accounts is protected by the Canadian Investor Protection Fund (CIPF) within specified limits. Learn more about the CIPF.
Wealthsimple Cash and Save accounts
- For Wealthsimple Cash and Save clients, 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 have partnered with a number of CDIC-member, Canadian Financial Institutions to take advantage of a combined CDIC eligible coverage amount (up to $300,000 CAD) for our clients in their Cash account.
- This means that we hold our clients’ Cash account balances over $100,000 CAD in trust with multiple members of the CDIC, allowing the extension of coverage to funds in your cash account for up to $300,000 CAD, against failure of any of Wealthsimple’s partner banks.
- The funds in your Save account are eligible for up to $100,000 in coverage less the balance you hold in your Wealthsimple Cash account.
Let’s walk through two examples:
Eligible coverage in Cash
Eligible coverage in Save
$150,000 in Wealthsimple Cash
$75,000 in Wealthsimple Save
All $150,000 is eligible for coverage
Deposits up to $300,000 are eligible for coverage, meaning you could deposit an additional $150,000 and have it eligible for coverage by CDIC
$0 is eligible for coverage
$100,000 in potential eligible coverage less $150,000 in your Cash account means $0 in coverage for Save
$75,000 in Wealthsimple Cash
$150,000 in Wealthsimple Save
All $75,000 is eligible for coverage
Deposits up to $300,000 are eligible for coverage, meaning you could deposit an additional $225,000 and have it eligible for coverage by CDIC
$25,000 is eligible for coverage
$100,000 in potential eligible coverage less $75,000 in your Cash account means $25,000 eligible for coverage in Save
- Although Wealthsimple is not a CDIC member institution, 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.
- For Cash account holders, Wealthsimple may spread client funds across one or multiple CDIC members in order to extend the CDIC coverage to up to $300,000 for eligible deposits.
Full details about our regulated products, entities and coverage can be found on our legal page here.