In June 2010, the Board of Directors of the Securities Investor Protection Corporation (SIPC) formed a Task Force to undertake a comprehensive review of the Securities Investor Protection Act (SIPA) and SIPC's operations and policies, and to propose reforms to modernize SIPA and SIPC.
Members of the Task Force included investor advocates, regulatory specialists, and academic experts. Also included was the Trustee for the liquidations of Lehman Brothers Inc. and MF Global Inc., as well as the former Chairman of the China Securities Investor Protection Corporation. A full list of the members is available in the Report.
The Task Force held a total of 14 meetings and set up two subcommittees to deal with major issue areas. Possible changes to SIPA were reviewed and debated. The Task Force was also acutely interested in hearing from the public. To that end, the Task Force created a Web site (formerly at http://www.SIPCModernization.org) to collect suggestions directly from the public. The Task Force also gathered extensive public input during two public forums, one held online in September 2010 and the other in person in New York City on June 1, 2011. In addition, the Task Force received in-person presentations and written contributions from investor education experts, representatives of the mutual fund industry, and other expert parties. The opinions of the public and the experts were all reviewed and considered by the Task Force when making its recommendations.
In February 2012, the SIPC Modernization Task Force issued its Report, containing 15 recommendations. The Task Force Report was presented to SIPC’s Board of Directors for consideration. The Board noted that many of the recommendations made by the Task Force had been implemented and that other recommendations would require legislation which might not be appropriate at this time.