Securities Investor Protection Corporation

What Securities Investor Protection Corporation does

The Securities Investor Protection Corporation (SIPC) is a congressionally created nonprofit corporation established under the Securities Investor Protection Act of 1970, headquartered at 1667 K St. N.W., Suite 1000, Washington, D.C. SIPC's core function is to protect customers of member broker-dealers by restoring missing cash and securities up to $500,000 per customer (including up to $250,000 for cash claims) when a registered brokerage firm fails financially. Since commencing operations in 1971, SIPC has administered 330 liquidation proceedings and direct payment procedures, restoring more than $142 billion for the benefit of over 773,000 investors. The ongoing Madoff (BLMIS) liquidation alone accounts for approximately $15.38 billion in aggregate customer distributions as of February 27, 2026.

SIPC's core operational products include investor asset protection, brokerage firm liquidation proceedings (where it appoints SIPA Trustees to recover and distribute assets), a streamlined Direct Payment Procedure for cases with aggregate claims under $250,000, claims filing and processing services, and the SIPC Fund (a special reserve maintained for customer restorations). The organization also operates a Broker-Dealer Portal (portal.sipc.org) enabling member firms to file assessment forms (SIPC-6/SIPC-7), annual reports, Agreed-Upon Procedures reports, and Form SIPC-3 electronically. Investor education resources, including Investor Bulletins published in partnership with the SEC's Investor.gov platform, FAQs, glossaries, and fraud alerts, supplement the core statutory mandate.

SIPC does not sell products or services and generates no commercial revenue. It is funded entirely through mandatory assessments on member broker-dealer firms, calculated as a percentage of gross revenues from securities business with a minimum assessment of 0.02% of net operating revenues; rates rise when the SIPC Fund falls below statutory thresholds ($150M or $100M). All registered brokers and dealers under Section 78o(b) of the Securities Exchange Act of 1934 are required SIPC members by law, with limited exceptions. SIPC is governed by a 7-member Board (5 presidential appointees, plus appointments from Treasury and the Federal Reserve) and operates under SEC oversight with access to up to $2.5 billion in SEC-backed borrowing authority. It is not a U.S. government agency but is subject to the D.C. Nonprofit Corporation Act.

Name

Securities Investor Protection Corporation

Legal name

Securities Investor Protection Corporation

Website

https://sipc.org

Company type

Private

Founded year

1970

Operating status

Operating

Headcount range

51–100 employees

Short description

The Securities Investor Protection Corporation is a congressionally created nonprofit that restores missing cash and securities up to $500,000 per customer when registered U.S. broker-dealer firms fail financially, funded by mandatory assessments on member broker-dealers.

Ownership category

akta.pro rank

Headquarters

HQ city

Washington

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Others

Revenue model

1. Member Assessments on Broker-Dealers: SIPC collects assessments from its member broker-dealer firms based on a percentage of their gross revenues from securities business. Assessment rates are determined by the SIPC Board and vary based on the balance of the SIPC Fund and SIPC's unrestricted net assets. The minimum assessment is 0.02% of net operating revenues, with higher rates triggered when fund balances fall below thresholds ($150M or $100M). SIPC may also borrow funds, and in extraordinary circumstances the SEC may impose transaction fees on equity security purchases to support SIPC borrowing.

Distribution channels1 record

Marketing channels6 records

Core offering

SIPC restores missing cash and securities to customers of insolvent SIPC-member brokerage firms, up to $500,000 per customer (including up to $250,000 for cash), and administers the liquidation process under SIPA. It funds this protection through mandatory assessments on registered broker-dealer members and operates the SIPC Fund to back customer claims. SIPC has returned more than $142 billion to over 773,000 investors across 330 liquidation proceedings since 1971.

Product overview

The Securities Investor Protection Corporation (SIPC) operates as a congressionally created non-profit organization offering a single unified investor protection service rather than a modular platform. Its core product is investor asset protection—restoring customers' cash and securities up to $500,000 (including $250,000 for cash) when member brokerage firms fail financially. This protection is delivered through two primary operational pathways: formal liquidation proceedings (where SIPC appoints trustees to recover and distribute assets) and the direct payment procedure (a streamlined alternative for smaller cases). Supporting these core functions are the Broker-Dealer Portal (enabling member firms to submit required assessments and filings), claims processing services, and the SIPC Fund (a special reserve maintained for customer restorations). The organization also provides investor education resources including bulletins, FAQs, and fraud alerts.

Differentiator

Problem solved

Functional benefit

Products and services

• Customer Asset Protection Coverage Restoration of missing cash and securities up to $500,000 per customer (including up to $250,000 in cash) for customers of insolvent SIPC-member broker-dealers. Provided automatically to customers of member firms at no cost to the investor.
• SIPA Liquidation Proceedings Administration Court-supervised liquidation of failed SIPC-member broker-dealers, overseen by SIPC-appointed SIPA Trustees who marshal assets, adjudicate claims, and distribute recoveries to customers in accordance with SIPA.
• Direct Payment Procedure Statutory mechanism that allows SIPC to advance protection payments directly to customers of a failed broker-dealer from the SIPC Fund, accelerating recovery without waiting for full liquidation completion.
• Broker-Dealer Member Assessment Program Recurring statutory assessments collected from SIPC-member broker-dealers to fund the SIPC Fund, which underwrites customer protection and liquidation activities.
• Investor Claims Filing and Case Status Service Online channels for customers of failed SIPC-member broker-dealers to obtain claims forms, file claims, and track the status of liquidation cases administered by SIPC and SIPA Trustees.

Quantifiable outcome

• $142 billion restored to over 773,000 investors since 1971
• +2 more outcomes

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators7 records

Recent moves6 records

Expansion highlights3 records

Broad incumbents

• U.S. Securities and Exchange Commission (SEC): The SEC has statutory oversight authority over SIPC, approves SIPC bylaw amendments, and provides the $2.5 billion borrowing backstop. It is the broader securities regulator whose mandate complements SIPC's narrower post-failure protection role.
• Financial Industry Regulatory Authority (FINRA): FINRA is the US self-regulatory organization overseeing broker-dealers, with overlapping jurisdiction with SIPC in the broker-dealer ecosystem. While SIPC handles post-failure asset recovery, FINRA oversees ongoing broker-dealer conduct and is a critical counterpart in protecting US retail investors.

Direct peers

• National Credit Union Administration (NCUA): NCUA administers the National Credit Union Share Insurance Fund, providing deposit insurance to credit union members using a fund capitalized by member institution assessments. Like SIPC, it is a federally chartered insurance entity for retail financial intermediaries with comparable mission and funding mechanics.
• Federal Deposit Insurance Corporation (FDIC): FDIC insures US bank depositors up to a per-customer cap (currently $250,000) using a fund built from member assessments. SIPC is functionally its securities-industry analog, with the same statutory structure, assessment-based funding, and automatic customer coverage model.
• Canadian Investor Protection Fund (CIPF): CIPF is Canada's statutory investor protection fund for customers of insolvent CIPF-member investment dealer firms, providing coverage up to CAD 1 million per customer. It is the closest international direct counterpart to SIPC in scope, funding model, and customer protection logic.
• UK Financial Services Compensation Scheme (FSCS): FSCS protects UK consumers when authorized financial firms fail, covering investments, deposits, insurance, and mortgages up to statutory limits, funded by levies on participating firms. Comparable to SIPC in combining investor protection, statutory mandate, and assessment-based funding.
• Japan Investor Protection Fund (JIPF): JIPF compensates investors for losses up to JPY 10 million per customer when a Japanese securities firm becomes insolvent. It mirrors SIPC's mandate, per-customer coverage structure, and assessment-funded reserve model.

Others

• U.S. Commodity Futures Trading Commission (CFTC): CFTC oversees US derivatives markets and serves as a regulatory peer to the SEC in adjacent financial markets. While CFTC does not administer an investor protection fund, it is a comparable federal financial regulator covering assets outside SIPC's scope.

Regional players

• Australian Securities and Investments Commission (ASIC): ASIC regulates Australian corporate, markets, and financial services and administers the Australian Government's Investor Compensation Scheme arrangements for clients of failed Australian financial services licensees. Operates as a regional counterpart to SIPC with a broader regulatory remit.
• Hong Kong Investor Compensation Fund (HKIC): HKIC compensates investors who suffer losses due to the default of an SFC-licensed intermediary in Hong Kong. Functionally analogous to SIPC but operating within Hong Kong's distinct regulatory framework and geography.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat3 records

Key risks5 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/securities-investor-protection-corp
• Xx.com/sipc

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds

Investors

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M&A

Investments

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Frequently asked questions about Securities Investor Protection Corporation