Securities Investor Protection Act
E676606
The Securities Investor Protection Act is a U.S. federal law that created the Securities Investor Protection Corporation (SIPC) and establishes procedures to protect customers and recover assets when brokerage firms fail.
Observed surface forms (1)
| Surface form | Occurrences |
|---|---|
| Securities Investor Protection Act of 1970 | 1 |
Statements (43)
| Predicate | Object |
|---|---|
| instanceOf |
United States federal statute
ⓘ
securities law ⓘ |
| administeredBy | Securities Investor Protection Corporation NERFINISHED ⓘ |
| amended | has been amended to adjust coverage and procedures over time ⓘ |
| appliesTo | customers of SIPC-member broker-dealers ⓘ |
| authorizes |
SIPC to advance funds to satisfy customer claims
ⓘ
appointment of SIPC trustees for failed broker-dealers ⓘ |
| country |
United States of America
ⓘ
surface form:
United States
|
| coverageType | limited protection for securities and cash in customer accounts ⓘ |
| creates | Securities Investor Protection Corporation NERFINISHED ⓘ |
| defines |
customer property in broker-dealer liquidations
ⓘ
customer status for purposes of SIPC protection ⓘ |
| doesNotProtect |
against bad investment advice
ⓘ
against market losses ⓘ |
| enactedBy | United States Congress ⓘ |
| enforcementMechanism | federal court liquidation proceedings initiated by SIPC ⓘ |
| establishes |
SIPC fund to advance money for customer claims
ⓘ
priority rules for distribution of customer property ⓘ procedures for liquidation of insolvent broker-dealers ⓘ |
| excludes |
certain types of firms from SIPC membership
ⓘ
futures-only firms from SIPC coverage ⓘ |
| focusesOn | custodial risk of broker-dealer failure ⓘ |
| goal |
mitigate systemic risk from broker-dealer failures
ⓘ
promote confidence in the U.S. securities markets ⓘ |
| historicalContext | enacted in response to broker-dealer failures and customer losses ⓘ |
| implementedThrough | SIPC liquidation proceedings in federal court ⓘ |
| industry | securities brokerage industry ⓘ |
| jurisdiction | federal law of the United States ⓘ |
| legalForm | codified in the United States Code ⓘ |
| primaryPurpose |
facilitate recovery of customer assets when broker-dealers fail
ⓘ
protect customers of failed brokerage firms ⓘ |
| protects |
institutional customers of broker-dealers
ⓘ
retail investors ⓘ |
| regulates | broker-dealers ⓘ |
| relatedOrganization | Securities and Exchange Commission NERFINISHED ⓘ |
| relationship | complements federal securities laws such as the Securities Exchange Act of 1934 ⓘ |
| requires | most registered broker-dealers to be SIPC members ⓘ |
| SECInvolvement | SEC oversees SIPC under the Act ⓘ |
| sector | financial regulation ⓘ |
| shortName | SIPA NERFINISHED ⓘ |
| subjectMatter |
liquidation of failed broker-dealers
ⓘ
securities investor protection ⓘ |
| typeOfProtection | insurance-like protection for custody of securities and cash ⓘ |
Referenced by (2)
Full triples — surface form annotated when it differs from this entity's canonical label.
subject surface form:
Irving Picard
this entity surface form:
Securities Investor Protection Act of 1970