The Securities Investor Protection Act, 15 U.S.C. section 78aaa, et seq. (PDF) (SIPA), is the statute that created SIPC and governs SIPA liquidations.
SIPC, with the approval of the SEC, has issued the following rules:
- Series 100 Rules (PDF) - Rules Identifying Accounts of “Separate Customers” of SIPC Members
- Series 200 Rules (PDF) - Rules Relating to Accounts Introduced by Other Brokers or Dealers
- Series 300 Rules (PDF) - Rules Regarding Closeout or Completion of Open Contractual Commitments
- Series 400 Rules (PDF) - Rules Relating to Satisfaction of Customer Claims for Standardized Options
- Series 500 Rules (PDF) - Rules Relating to Satisfaction of a “Claim for Cash” or a “Claim for Securities”
The Securities and Exchange Commission is currently considering proposed SIPC Series 600 Rules, entitled "Rules Relating to Supplemental Report of SIPC Membership." Comments from the public are to be received on or before November 25, 2015. Information about how to submit a comment is available in the Federal Register, 80 Fed. Reg. 68286, and at http://www.sec.gov/cgi-bin/ruling-comments. The full text of the proposed rules is below.
PART 300 - RULES OF THE SECURITIES INVESTOR PROTECTION CORPORATION
1. The authority citation for part 300 continues to read as follows:
Authority: 15 U.S.C. 78ccc.
2. Section 300.600 is added as follows:
Series 600 Rules
§300.600 Rules relating to supplemental report on SIPC membership.
(a) Who must file the supplemental report. Except as provided in paragraph (a)(ii) of this section, a broker or dealer must file with SIPC, within 60 days after the end of its fiscal year, a supplemental report on the status of its membership in SIPC (commonly referred to as the "Independent Accountants' Report on Applying Agreed-Upon Procedures") if a rule of the Securities and Exchange Commission (SEC) requires the broker or dealer to file audited financial statements annually.
(ii) If the broker or dealer is a member of SIPC, the broker or dealer is not required to file the supplemental report for any year in which it reports $500,000 or less in total revenues in its annual audited statement of income filed with the SEC.
(b) Requirements of the supplemental report. The supplemental report must cover the SIPC Annual General Assessment Reconciliation Form (Form SIPC-7) or the Certification of Exclusion From Membership Form (Form SIPC-3) for each year for which an SEC Rule requires audited financial statements to be filed. The supplemental report must include the following:
A copy of the form filed or a schedule of assessment payments showing any overpayments applied and overpayments carried forward, including payment dates, amounts, and name of SIPC collection agent to whom mailed; or
(ii) If exclusion from membership was claimed, a statement that the broker or dealer qualified for exclusion from membership under the Securities Investor Protection Act of 1970, as amended, and the date the Form SIPC-3 was filed with SIPC; and
(iii) An independent public accountant's report. The independent public accountant, who must be independent in accordance with the provisions of 17 CFR § 240.210.2-01, must be engaged to perform the following agreed-upon procedures in accordance with standards of the Public Company Accounting Oversight Board (PCAOB):
(A) Compare assessment payments made in accordance with the General Assessment Payment Form (Form SIPC-6) and applied to the General Assessment calculation on the Form SIPC-7 with respective cash disbursements record entries;
(B) For all or any portion of a fiscal year, compare amounts reflected in the audited financial statements required by SEC Rule with amounts reported in the Form SIPC-7;
(C) Compare adjustments reported in the Form SIPC-7 with supporting schedules and working papers supporting the adjustments;
(D) Verify the arithmetical accuracy of the calculations reflected in the Form SIPC-7 and in the schedules and working papers supporting any adjustments; and
(E) Compare the amount of any overpayment applied with the Form SIPC-7 on which it was computed; or
(F) If exclusion from membership is claimed, compare the income or loss reported in the audited financial statements required by SEC Rule with the Form SIPC-3.