The Securities Investor Protection Act of 1970 codified at 15 U.S.C. § 78aaa through 15 U.S.C. § 78lll, established the Securities Investor Protection Corporation (SIPC). Most brokers and dealers registered under the Securities Exchange Act of 1934 are required to be members of the SIPC.
The SIPC maintains a fund that is intended to protect investors against the misappropriation of their funds and of most types of securities in the event of the failure of their broker.
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