Wealthsimple’s Platform Failure Sparks Outcry as Customers Seek Compensation (2024)

FAQs

What happens if Wealthsimple fails? ›

The funds in all of your individual and joint Cash accounts are placed in trust with up to five tier 1, CDIC-member, regulated Canadian financial institutions. CDIC protection against the failure of these banks extends to Wealthsimple Cash account holders for up to $500,000 CAD across all Cash accounts.

Your Wealthsimple Self-directed Investing account is an account (offered by Wealthsimple Investments Inc.) that allows you to buy and sell stocks and ETFs with no trading commissions. Wealthsimple Investments Inc. offers a self-directed platform and doesn't offer any financial advice or recommendations.

The suit, which is seeking damages of $10-million each from Wealthsimple and Shakepay, also alleges that both companies bait customers to use their trading platforms by using terms such as commission-free or zero fee commissions.

Withdrawing funds

In order to make a withdrawal from any Wealthsimple account, the funds will have to have been in your account for a minimum of five business days. Timelines for withdrawals will depend on the account that you're withdrawing from. Withdrawals typically take 1-7 business days to complete.

As an online discount broker, Wealthsimple doesn't have a wide range of offerings. Wealthsimple does not offer mutual funds, futures, or fixed income. Wealthsimple's offerings include: Stocks (Canadian and U.S.-based stocks)

As of March 31, 2024, the firm holds over C$38.7 billion in assets under management. It is primarily owned by Power Corporation indirectly at 56.6% through investments made through their holdings in Power Financial, IGM Financial and Portag3.

For Wealthsimple Cash, joint 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.

For Wealthsimple Cash, joint 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.

Self-directed Investing is offered by Wealthsimple Investments Inc. (“WSII”). WSII is a member of the Canadian Investment Regulatory Organization. Customer accounts held at WSII are protected by Canadian Investor Protection Fund (“CIPF”) within specified limits in the event WSII becomes insolvent.

Generally, investors will lose all of their money, unless a small portion of their investment is redeemed through the sale of any company assets.