What is the Securities Investor Protection Corporation (SIPC)?
SIPC is a non-profit member organization of broker-dealers created in 1970 by an act of Congress. It protects customers of those broker-dealer members that for some reason cannot meet financial obligations to their customers. Where does SIPC get the funds to protect me? SIPC can draw on approximately $790 million of member contributions and interest earned from U.S. government securities. It also has a $1 billion line of credit with a bank consortium. And, if necessary, SIPC can also borrow up to $1 billion from the U.S. Treasury. Is my cash account and my individual retirement account (IRA) protected separately? Yes. Ridge Clearing has arranged for unlimited account net equity protection for each account in which you act in a different capacity. How would SIPC satisfy my claim? SIPC recovers all of the cash and securities it can from your broker-dealer — then uses its own funds to satisfy any additional claims you may have. What if I have more than $500,000 worth of securities and ca
