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The Securities Investor Protection Corporation either acts as trustee or works with an independent courtappointed trustee in a missing asset case to recover funds. The statute that created SIPC provides that customers of a failed brokerage firm receive all nonnegotiable securities that are already registered in their names or in the process of being registered. All other socalled street name securities are distributed on a pro rata basis. At the same time, funds from the SIPC reserve are available to satisfy the remaining claims of each customer up to a maximum of $500,000. This figure includes a maximum of $100,000 on claims for cash. Recovered funds are used to pay investors whose claims exceed SIPCs protection limit of $500,000. SIPC often draws down its reserve to aid investors.

 

Address: 805 15th Street, N.W. Suite 800 Washington, D.C. 20005-2215
Telephone: (202)371-8300
Fax: (202)371-6728
Website: http://www.sipc.org/