What SIPC Covers... What it Does Not
The cash and securities – such as stocks and bonds – held by a customer at a financially troubled brokerage firm are protected by SIPC.
Among the investments that are ineligible for SIPC protection
are commodity futures contracts and currency, as well as investment
contracts (such as limited partnerships) and fixed annuity contracts
that are not registered with the U.S. Securities and Exchange Commission
under the Securities Act of 1933.
It is important to recognize that SIPC does not work the same way as the
Federal Deposit Insurance Corporation in terms of blanket protection of
losses. For more information click here.
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