About SIPC
A non-profit corporation created by Congress to protect investors
Our Mission
SIPC's mission is to restore investors' assets when a brokerage firm fails financially. As a non-profit corporation created by Congress, we have protected investors for over 50 years under the Securities Investor Protection Act (SIPA).
Our History
SIPC was established by the Securities Investor Protection Act of 1970. For more than five decades, SIPC has served as the investor's bridge to recovery — stepping in when brokerage firms fail and customer assets go missing.
Investor Protection
SIPC protects customers of member broker-dealers. When a SIPC member firm fails, SIPC works to return securities and cash to customers. Protection is up to $500,000 per customer, including up to $250,000 for cash claims.
The SIPC Fund
SIPC maintains a fund financed primarily by member securities broker-dealers. This fund is available to make up any difference when customer assets are missing. The fund has been sufficient to handle all SIPC proceedings since the organization's founding.
What SIPC Covers
SIPC covers most types of securities: stocks, bonds, treasury securities, certificates of deposit, and mutual funds. SIPC does not cover commodity contracts, currency, unregistered investment contracts, or fixed annuity contracts not registered with the SEC.
How We Resolve Your Issues
SIPC offers structured pathways to address each of the most common investor concerns. Below is an overview of how we approach and resolve each type of request.
Account Closure & Data Deletion
When a SIPC member broker-dealer fails, SIPC initiates a formal liquidation proceeding overseen by a court-appointed trustee. All open accounts are reviewed, customer records are secured, and assets are transferred to solvent firms where possible. If a customer requests data deletion, SIPC coordinates with the trustee to ensure records are handled in accordance with applicable law. Account closure is completed only after all claims are settled and assets returned.
Recovery of Lost Brokerage Accounts
Recovering a lost brokerage account is SIPC's primary function. Once a liquidation proceeding begins, the trustee works to locate and return missing securities and cash to customers. SIPC advances funds from its reserve to cover any shortfall up to $500,000 per customer (including up to $250,000 in cash). Customers file claims directly with the trustee, and SIPC monitors the process to ensure timely and fair resolution.
Search & Return of Transaction Funds
When funds from specific transactions cannot be located, SIPC works alongside the trustee to trace asset movement through the failed firm's records — trade confirmations, account statements, wire transfer logs, and clearing records. If funds were improperly transferred or diverted prior to the firm's collapse, SIPC supports legal action to recover them. Recovered funds are redistributed to affected customers as part of the liquidation estate.
Fraud Complaint
SIPC is not a law enforcement agency, but plays a critical role when fraud is involved in a brokerage failure. Upon receiving a complaint, SIPC coordinates with the SEC, FINRA, the FBI, and the court-appointed trustee to investigate the claim. Evidence of fraudulent activity is referred to regulatory and criminal authorities. In cases of large-scale fraud such as Ponzi schemes, SIPC has funded major liquidation proceedings to recover assets on behalf of thousands of defrauded investors. Submitting a complaint through our contact form is the first step toward a formal review.