SIPC

The Securities Investor Protection Corporation (SIPC) is a non-profit organization established by the U.S. Congress to protect customers of brokerage firms when a broker becomes financially insolvent. Its primary mission is to help investors recover their securities and cash if a SIPC-member brokerage is unable to return customer assets. Many investors assume SIPC works like investment insurance, but this is a common misconception. SIPC does not protect portfolios against market losses or guarantee investment returns. Instead, it safeguards customer assets when a brokerage firm fails financially. Today, SIPC is an essential part of the U.S. securities industry and provides an additional layer of confidence for millions of investors using regulated brokerage firms.