Thursday, September 29, 2016
How the SIPC Protects Investors and Their Assets
Founded in 1984, Aegis Capital Corp has established a wide customer base and a strong reputation over the last few decades. Aegis Capital Corp is a member of both FINRA and the SIPC, allowing them to safeguard their customers' assets.
The Securities Investor Protection Corporation (SIPC) is a nonprofit member corporation. It was established by the Securities Investor Protection Act of 1970, and exists to facilitate liquidation when a broker-dealer faces bankruptcy or similar financial woes. When a broker goes under, the SIPC makes sure that customers get their securities and cash assets back promptly.
When liquidation begins, a court-appointed trustee closes the failed brokerage firm and immediately takes control of books and records. In cases where records are poorly organized or incomplete, this first step can take months.
When organized, the trustee requests claim forms from the court. Once approved, these forms will be mailed to the broker's former customers. These individuals have a limited window to file a claim. The trustee will also publish public notice of the pending case.
Once the customers receive their claim forms, they fill them out and submit them along with any documentation that supports their claim. The trustee evaluates a claim, issues a determination letter, and returns the appropriate assets to the customer.
For more information on Aegis Capital, visit www.aegiscapcorp.com.