General Info

From the time Congress created it in 1970 through December 2004, the Securities Investor Protection Corporation has advanced $570 million in order to make possible the recovery of $14.2 billion in assets for an estimated 624,000 investors. SIPC either acts as trustee or works with an independent court-appointed trustee in a fraud case to recover funds. The statute that created SIPC rules provides that customers of a failed brokerage firm receive all non-negotiable securities that are already registered in their names or in the process of being registered. At the same time, funds from the SIPC reserve are available to satisfy the remaining claims of each customer up to a maximum of $500,000. This figure includes a maximum of $100,000 on claims for cash. the Securities Investor Protection Corporation is located in Washington, D.C.