Series 7: 18.2.5.2. Authority Of SIPC

18.2.5.2. Authority of SIPC

The Securities Investor Protection Corporation has no authority to combat investment fraud or to investigate or regulate its members. It has the narrower focus of overseeing the liquidation of member firms that close due to bankruptcy or financial trouble.

When a self-regulatory organization or the SEC becomes aware that a broker-dealer is in financial difficulty, it must notify SIPC. In the case of an imminent danger of member failure, the SIPC may pe