Does the Investor Compensation Scheme (ICS) provide coverage for securities loaned out under the Stock Yield Enhancement Program?

No. The Canadian Investor Protection Fund (CIPF) does not protect you as a lender with respect to securities loan transactions in which you lend to Interactive Brokers (IBKR) your Fully-Paid Securities through the Stock Yield Enhancement Program. Therefore, the cash collateral delivered to you (and indicated on your account statement) by IB Canada will constitute the only source of satisfaction of IBKR's obligation in the event that IB Canada fails to return the securities…

Shares loaned out may not be protected by the Financial Services Compensation Scheme (FSCS).

Therefore, the US Treasury collateral delivered to you (and indicated on your account statement) may constitute the only source of sanctification of IBKR's obligation in the event that IBKR fails to return securities…

The Stock Yield Enhancement program provides customers with the opportunity to earn additional income on securities positions which would otherwise be segregated (i.e., fully-paid and excess margin securities) by permitting IB to lend out those securities to third parties. Customers who participate in the program will receive a portion of the interest paid on the cash collateral by the borrower as loan compensation for any day the loan exists and will receive cash collateral to secure the return of the stock loan at its termination…

Shares loaned out may not be protected by the Investor Compensation Fund (ICF). Therefore, the cash collateral delivered to you (and indicated on your account statement) may constitute the only source of satisfaction of IBKR's obligation in the event that IBKR fails to return securities. This is why IBKR provides you with cash collateral in at least the same amount as the value of your shares to protect you in the very unlikely event that the stock is not returned to you…