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What does SIPC membership mean to the members?

April 26, 2017mean members membership sipc

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What does SIPC membership mean to the members?

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SIPC membership means several things. First, to become a SIPC member, firms must pay SIPC a $150 annual fee. Second, SIPC membership means that firms must comply with NASD Rule 3020 and maintain a blanket fidelity bond to provide for coverage against loss. In addition, MSRB Rule G-6 also requires brokers, dealers, and municipal securities dealers to comply with the fidelity bonding requirements of FINRA in order to meet the MSRB’s qualification requirements.