SIPC - Securities Investor Protection Corporation

Why Was SIPC Created?

SIPC is an important part of the overall system of investor protection in the United States. 

While a number of federal, self-regulatory and state securities agencies deal with cases of investment fraud, 
SIPC's focus is both different and narrow:  
Restoring funds to investors with assets in the hands of bankrupt and otherwise financially troubled brokerage firms. 

The Securities Investor Protection Corporation was not chartered by Congress to combat fraud.

The SIPC Mission

When a brokerage firm is closed due to bankruptcy or other financial difficulties and customer assets are missing, SIPC steps in as quickly as possible and, within certain limits, works to return customers' cash, stock and other securities, and other customer property. 

Without SIPC, investors at financially troubled brokerage firms might lose their securities or money forever or wait for years while their assets are tied up in court.

Although not every investor is protected by SIPC, no fewer than 99 percent of persons who are eligible get their investments back from SIPC.

From its creation by Congress in 1970 through December 2011, SIPC advanced $1.8 billion in order to make possible the recovery of $117.5 billion in assets for an estimated 767,000 investors.


 Learn More:

 http://www.sipc.org/Portals/0/PDF/HSPY_2012_English.pdf



 Source:
SIPC - Securities Investor Protection Corporation > Who > SIPC Mission

http://www.sipc.org/Home.aspx