Membership in SIPC is automatic upon effective 1934 Act Section 15(b) registration, with three exceptions:
Persons registered as brokers or dealers under 15 U.S.C. section 78o (b)(11)(A) with respect to transactions in security futures products.
- Broker-dealers whose business is exclusively:
- the distribution of shares of mutual funds,
- the sale of variable annuities,
- the business of insurance, or
- furnishing investment advice to investment companies or insurance company separate accounts.
- Broker-dealers whose principal business, in the determination of SIPC, is outside the United States and its territories.