Securities Investor Protection Act of 1970

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Securities Investor Protection Act of 1970

Legislation in the United States that established the Securities Investor Protection Corporation (SIPC). The SIPC insures investors in case their broker-dealer firms fail. In the event of failure of a broker-dealer firm, its clients are protected up to $500,000 of their total equity investments and up to $100,000 in cash. It also protects investors from fraud or misappropriation on the part of their broker-dealers. It is important to note that the SIPC does not protect against bad investments, nor does it cover any futures or commodity contracts. It is not a government entity; it is a non-profit organization to which most brokers and dealers registered with the SEC are required to belong.

Securities Investor Protection Act of 1970

An act that established the Securities Investor Protection Corporation. The legislation responded to the generally unstable condition of the brokerage industry in the late 1960s.
References in periodicals archive ?
BakerHostetler is perhaps most well known for its role as court-appointed counsel to the Securities Investor Protection Act (SIPA) Trustee in the recovery of billions of dollars in principal lost in the Ponzi scheme perpetrated by Bernard L.
This outcome demonstrates the effectiveness of the Securities Investor Protection Act and the Bankruptcy Courts at handling even unprecedented failures of regulated broker-dealers and commodities firms.
Attorney s office shows how the work under the Securities Investor Protection Act to return funds to investors when a brokerage firm fails may have a broader impact for the benefit of customers, Harbeck said.
Giddens, Trustee for the Securities Investor Protection Act (SIPA) liquidation of MF Global Inc.
ruled that the Securities Investor Protection Act did not apply to securities issued by Stanford's offshore bank, even though the Stanford Financial Group was an SIPC member.
According to Securities Investor Protection Act (SIPA) Trustee Irving Picard, the second largest bank in the U.
Picard, the Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L.
This is an extraordinary achievement and Trustee Giddens and his staff have demonstrated that the Securities Investor Protection Act is an effective mechanism in the most complex liquidation proceedings.
LBI") under the Securities Investor Protection Act (SIPA), and Tony Lomas, the Joint Administrator of Lehman Brothers International (Europe)("LBIE"), announced today that an agreement in principle has been reached to resolve all claims among their respective entities totaling $38 billion.
Picard, the court-appointed trustee for the liquidation of BLMIS under the Securities Investor Protection Act (SIPA), and SIPC President Stephen Harbeck.
This unexpected outcome again demonstrates that the Securities Investor Protection Act, the statute that governs most U.
Today's decision supports the Trustee's Securities Investor Protection Act (SIPA) mandate to protect customer property and make Lehman Brothers Inc.
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