SIPC Overview: The Securities Investor Protection Corporation, or SIPC (pronounced "SIP-ick") was created by Congress to reimburse investors whose brokerage firm has become insolvent or bankrupt. SIPC is a nonprofit corporation funded by assessments on the broker-dealer firms that are its members. As of the end of 2007, SIPC had 5,435 member firms.
Not the FDIC: SIPC is often mistakenly confused with the FDIC, probably because both administer deposit insurance plans. Unlike SIPC, however, the FDIC regulates the banking system and is an agency of the federal government.
Employment: SIPC is led by 7 directors, some appointed by the President of the United States, and others by the member firms. It employs a staff of only 29, and does not advertise job openings on its website. In 2007, total employee compensation and benefits were a generous $5.8 million.
