SEC v. SIPC on the Definition of "customer" (with Lofchie Comment)

SIFMA submitted an Amicus "Friend of the Court" Brief, addressing whether (i) SIPC should provide "expansive and unprecedented financial guarantees" for investors who purchased CDs issued by an offshore bank in Antigua, or (ii) SIPC's Congressionally mandated responsibilities are appropriately limited to reimbursing customers of failed brokerages for any securities or cash that are missing from their brokerage accounts.

Lofchie Comment: See Lofchie's Guide to Broker-Dealer Regulation, Insolvency Chapter (link below). The discussion in the Chapter is consistent with the arguments made in the SIFMA brief.

Click here to view amicus brief in full (links externally to SIFMA website).For a fairly comprehensive discussion of SIPA, see Lofchie's Guide to Broker-Dealer Regulation, Insolvency Chapter.