The SIPC (Securities Investor Protection Corporation) effectively acts as an insurance policy for customers against the potential wrongdoing of broker dealers. In the rare event of a brokerage firm failure, SIPC protects the securities and cash in customer brokerage accounts up to $500,000, including up to $250,000 protection for cash. Brokerage firms that are SIPC members offer more security, stability, and trust for their customers.
The regulatory requirement for SIPC member firms is that every six months each member firm is required to compute their SIPC assessment based on a modified calculation of profit and loss, and submit the calculation along with a check for the balance due.
The accurate and timely submission of SIPC computations and the associated payments is a regulatory requirement that ACI handles on behalf our clients. We often discuss changes in these computations with industry experts so we can minimize the financial obligation when applicable.
SIPC Annual Report Deadlines
SIPC-6 Report covers the first six months of the firm’s fiscal year. Mid-year reporting and payment are due within 30 days of the fiscal year midpoint.
SIPC-7 Report reconciles the cumulative fiscal year reporting of SIPC gross revenue and payments. Annual reporting and payment are due within 60 days of the end of the fiscal year, in conjunction with the annual audit due date.
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