Investor protection fund
Also called: IPF
A fund kept by a stock exchange or depository to pay eligible investors' claims when a member, such as a broker, defaults, up to set limits.
If a broker fails and is declared a defaulter, investors whose money or shares the broker held and could not return can claim from the exchange's investor protection fund, within its rules and limits. The fund protects against a firm's failure, not against losses on investments that fell in price.
Learn more in these lessons
- Investor complaints and dispute resolutionHow do you complain about a broker or a company, and what can it achieve?
Related terms
Spotted a mistake or something unclear? Report it by email. Here is how corrections work.