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 ?

It would help ensure that clients "are treated in a manner at least as beneficial as would have been the case in a liquidation under the Securities Investor Protection Act," according to the SEC.

SEC Seeks Feedback on BD Liquidation Rule

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.

Elliot J. Feldman, Partner, Baker & Hostetler LLP to Speak at the KC's Event

LBI) trustee for the liquidation of the company under the Securities Investor Protection Act said the third interim distribution to unsecured general creditors with allowed claims has begun with checks totaling USD1.

Lehman Brothers trustee begins USD1.75b in interim distribution to unsecured creditors

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.

United States : OCC assesses a $350 million PENALTY against JPMorgan Chase for bank secrecy act violations

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.

Next step

That unit has a separate trustee, James Giddens, appointed under the Securities Investor Protection Act.

No Bonuses for MF Global Execs

Let me be very clear: In the 40 year history of the Securities Investor Protection Act (SIPA), SIPC has never been interpreted to permit SIPC to refund the purchase price of a bad investment," Harbeck said.

SIPC fights SEC's Stanford suit: CEO Harbeck claims SIPC not required to refund investors' 'bad investment'

It is believed that the trustee for Lehman Brothers Holdings under the Securities Investor Protection Act may try to recover USD1bn that Citigroup, Inc took for clearing obligations for Lehman Brothers Holdings' broker-dealer subsidiary.

-Citi says it could face claims from Lehman

The professionals from Hughes Hubbard & Reed demonstrated that the Securities Investor Protection Act was suited for dealing with the most complex insolvency in history.

SIPC acknowledges Lehman Brothers trustee on distribution plan to unsecured general creditors

THE ESTATE TAX, Fannie Mae and Freddie Mac, as well as the Securities Investor Protection Act (SIPA), are pressing topics that Congress plans to tackle when it gets back to work this month.

Industry heeds SEC's call for comments: agency flooded with comments on fiduciary standard; 'fiduciary forum' on September 24