• Enhanced SIPC Protection under the Dodd-Frank Act
  • August 4, 2010 | Authors: Jonathan S. Cohen; Orlan M. Johnson; Lawrence A. London
  • Law Firm: Saul Ewing LLP - Washington Office
  • SIPC was established under the Securities Investor Protection Act of 1970 (“SIPA”) to protect investors holding assets in brokerage accounts from the risk that the broker-dealers holding such assets could become insolvent and, as a result, would be unable to return the funds and securities held in such accounts. Although SIPC is designed to protect against such insolvency risks, it is not designed to protect investors against market risks.