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  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house has not voted
      house Committees
      House Committee on Financial Services
    IntroducedJune 10th, 2009

Bill Details

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Title

Support Investment Protection for Customers Reform Act of 2009

Official Title

To increase securities protection coverage in the event of stolen or missing assets, and for other purposes.

Summary

Support Investment Protection for Customers Reform Act of 2009 - Amends the Securities Investor Protection Act to increase from $100,000 to $250,000 (with inflation adjustments) the amount of an investor's net equity claim for cash that the Securities Investor Protection Corporation (SIPC) (a nonprofit, nongovernment, membership corporation funded by its broker-dealer members) insures in the event the investor's broker-dealer becomes insolvent. Increases the federal line of credit available to the SIPC. Increases from $150 to $1,000 the minimum annual assessment paid by SIPC members. Allows the SIPC to appoint itself or one of its employees as trustee, without regard to the amount of liabilities to unsecured general creditors and to subordinated lenders involved, if there appear to be fewer than 5,000 (currently 500) customers of a broker-dealer member facing liquidation. Prohibits SIPC advances to the insiders of failed or failing broker-dealers. Raises the aggregate customer claim limit on the SIPC's authority to use the direct payment procedure rather than instituting a liquidation proceeding with regard to failed or failing members. Increases the maximum fine imposed on SIPC members that engage in certain prohibited acts. Establishes civil liability and criminal penalties for misrepresentations of SIPC membership or protection. Creates, within the Office of Inspector General of the Securities and Exchange Commission (SEC), a Commission on International Financial Fraud to study the potential structure of, and benefits of establishing, an international financial court and process for the adjudication of financial fraud cases.

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