2.3.2.6 Missing and Lost Certificates
The SEC operates a Lost and Stolen Securities Program (LSSP), whose purpose is to curtail trafficking in lost, stolen, missing, and counterfeit securities certificates. The LSSP consists mainly of a database for securities that have been reported lost, stolen, missing, or counterfeit and thus are not eligible for transfer.
Most financial institutions (including exchanges, banks, broker-dealers, clearing agencies, and transfer agents) are required to report any certificates that they discover to be lost, stolen, missing, or counterfeit. These institutions also must check the LSSP database about any securities certificate valued at more than $10,000 that comes into their possession or keeping. Financial institutions are encouraged to check other certificates that come into their possession.
The LSSP is operated by the Securities Information Center (SIC), an arm of the SEC. SIC receives all reports and inquiries, responds to inquiries, and maintains the LSSP’s database. It also handles the reporting of stolen, missing, lost, or counterfeit securities.
Every FINRA member firm must file a notification with the SIC if it discovers the following:
- • Stolen securities. The firm must report stolen securities to the