Answers to the 7 Most Asked Questions 

1. How can I be sure I am dealing with a SIPC member? Why is that important?

   Look for this language:

   MEMBER SECURITIES INVESTOR PROTECTION CORPORATION

   Those words – or “Member SIPC” -- appear in all signs and ads of SIPC members. If you have a question as to whether or not a particular firm is a member of SIPC, you may call the SIPC Membership Department at 202/371-8300 or visit us on the Web at www.sipc.org.

   Why is the issue of SIPC membership relevant to you? SIPC protects customers of broker- dealers as long as the broker-dealer is a SIPC member. However, if a SIPC member's registration with the U.S. Securities and Exchange Commission is terminated, the broker-dealer's SIPC membership is also automatically terminated. SIPC loses its power to protect customers of former SIPC members 180 days after the broker-dealer ceases to be a member of SIPC. Normally, the SEC will not permit the termination of the registration and SIPC membership of a broker-dealer if the firm owes securities or cash to customers. However, a SIPC membership may be terminated if the Commission is unaware the firm owes securities or cash to customers.

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