The Securities Investor Protection Act provides that overpayments shall be recoverable only against future assessments due, except as otherwise provided by law. SIPC Bylaw Article 6 permits refunds of amounts in excess of $150 to terminated members who have satisfied all filing requirements.
All registered brokers or dealers, by law, automatically become SIPC members, except for the following, who may be excluded from SIPC membership:
(i) persons whose principal business, in the determination of SIPC, taking into account business of affiliated entities, is conducted outside the United States and its territories and possessions;
(ii) persons whose business as a broker or dealer consists exclusively of (I) the distribution of shares of registered open end investment companies or unit investment trusts, (II) the sale of variable annuities, (III) the business of insurance, or (IV) the business of rendering investment advisory services to one or more registered investment companies or insurance company separate accounts; and
(iii) persons who are registered as a broker or dealer pursuant to 15 U.S.C. section 78o(b)(11)(A) - broker/dealer registration with respect to transactions in security futures products. See SIPA section 78fff(a)(2)(A) and SIPC-3.
Please make a copy of the form that was filed, label it “AMENDED,” and place a line through any incorrect number and write the correct number next to it. Mail the amended form to SIPC’s street address: 1667 K St. N.W., Suite 1000, Washington, DC 20006.
To terminate the broker-dealer registration and SIPC membership, a completed broker-dealer withdrawal form (Form BDW) must be filed with the Central Registration Depository (CRD). The “effective withdrawal” usually is 60 days after the CRD receives and accepts the filing, and on that date SIPC membership would terminate. Note that SIPC may still initiate a liquidation proceeding up to 180 days after the effective date of the BDW.
I have no revenue during the reporting period, should I put zeros in the revenue and assessment section and file the form?
Is there a review process if a SIPC member has questions about or wishes to challenge an assessable item?
Yes. Address all questions or concerns to the Membership Department, and provide documentation regarding any challenged assessable item. We will advise you of the outcome of our review.
When Congress passed the Securities Investor Protection Act, it made all SIPC members subject to its provisions, including the obligation to pay assessments into the SIPC Fund. The objective was to instill confidence in the investing public and to place the financial support of the SIPC program on all firms that made their livelihood in the securities business, regardless of whether they had public customers or not. This includes SIPC member firms generating revenue from non-customer activities such as investment banking, raising money for private equity or hedge funds, financial advisory services, equity research, or other activities related directly or indirectly to the securities business.
Form SIPC-6, filed for the first six months of each member’s fiscal year, is due 30 days after the period which it covers plus a 15 day grace period.
Form SIPC-7 (36-REV 12/18), filed at the end of each member’s fiscal year, less the assessment paid with the Form SIPC-6, is due 60 days after the fiscal year-end (FYE) plus a 15 day grace period. (Assessment Rate is 0.0015).
Any deduction on line 2c(8), on page 2 of the forms, in excess of $100,000 must be accompanied by documentation.
Working copies of assessment forms can be used for filing.
All SIPC Members with assessments below the dollar threshold (currently $1,000,000) are eligible to make their assessment payments via ACH Debit Authorization. Members must first register with SIPC. Please contact the Membership Department at 202-371-8300 or firstname.lastname@example.org for an ACH Enrollment Form. Once the Enrollment form is received and processed by SIPC, a SIPC ACH Member ID and a Member Pin will be emailed to the Authorized Person listed on the form. These ACH Credentials will allow the authorized person to access the ACH system at https://www.sipc.org/for-members/assessments.
Please email your assessment form to email@example.com.
Yes. The payment limit is $999,999.
There is no deadline. The ACH enrollment form can be filled out and sent in at any time.
SIPC does not charge a fee to enroll in SIPC’s ACH program or to make assessment payments via an ACH transfer. However, your bank may charge fees for ACH payments.
Wait times vary due to the volume of enrollment forms being processed. SIPC aims to send credentials within 3-5 business days after receipt of an enrollment form.
Credentials can be sent to only one authorized person per SIPC Member.
Yes. An individual can be the authorized person for multiple SIPC Members. However, an enrollment form must be received from each SIPC Member.
Credentials are sent using an encrypted email service. Check the spam folder of the Authorized Person listed on the enrollment form, sometimes encrypted emails get misdirected to the spam folder. Please be aware that you do need to set up a user name and password in order to open encrypted emails from SIPC. Encrypted emails will expire after a short time period. If the encrypted email has expired, can’t be opened, or you didn’t receive an encrypted email, please contact the Membership Department at 202-371-8300 or firstname.lastname@example.org.
Both the ACH Member ID and Member PIN are case sensitive. Please remember that your ACH Member ID is not your CRD or SEC 8- number. If problems persist, please contact the Membership Department at 202-371-8300.
If credentials are lost or misplaced or misused, please contact the Membership Department at 202-371-8300 or ACH@sipc.org.
Please submit an updated enrollment form. SIPC will process the form and send updated credentials to the new authorized person. Please contact the Membership Department at 202-371-8300 or email@example.com for an ACH Enrollment Form.
Yes. SIPC’s ACH system sends an automated email to the authorized person when a payment is initiated.
All members of SIPC that are required to file Annual Reports with the SEC and their DEA pursuant to SEC Rule 17a-5(d)(1), 17 C.F.R. § 240.17a-5(d)(1), are also required to file their Annual Reports with SIPC. Annual Reports are due to SIPC when they are due to the Designated Examining Authority (i.e., FINRA) and the SEC according to SEC Rule 17a-5(d)(5) (no more than sixty calendar days after the end of the broker-dealer’s fiscal year).
Members that file Annual Reports with their DEAs through the FINRA Firm Gateway: Through an arrangement with FINRA, all members that file Annual Reports with their DEA through the FINRA Firm Gateway on and after September 1, 2017 will use the FINRA Firm Gateway to also file their Annual Reports with SIPC.
Members that do not file Annual Reports with their DEAs through the FINRA Firm Gateway:
SIPC members that do not file through the FINRA Firm Gateway will be provided with instructions.
Nothing additional. When an Annual Report is filed by a member through the FINRA Firm Gateway on or after 9/1/17, this will also constitute filing with SIPC. When filing through the FINRA Firm Gateway the FINRA site will indicate:
By submitting this report, [the firm] acknowledges that the filing of its Annual Report with FINRA (initial and amendments) also constitutes filing of the Annual Report with SIPC pursuant to SEC Rule 17a-5 if the firm is also a SIPC member.
Nothing additional. A supplemented or amended Annual Report requested by the DEA and filed through the FINRA Firm Gateway will be provided to SIPC.
I am exempt from the Annual Report filing requirement with my DEA. Do I need to do anything with SIPC?
Yes. Please email SIPC at firstname.lastname@example.org no later than sixty calendar days after the end of your fiscal year and advise that you are exempt from the Annual Report filing requirement. Please include a copy of any correspondence from your DEA supporting your exemption. Please notify SIPC each year that you are exempt from the Annual Report filing requirement.
I contacted SIPC last year to let SIPC know I was exempt from the Annual Report filing requirement. Do I need to do anything with SIPC this year?
Yes. Please notify SIPC at email@example.com each year no later than sixty calendar days after the end of your fiscal year that you are exempt from the Annual Report filing requirement.
No. If you received a filing extension from your DEA, that extension also applies to your filing deadline with SIPC. Nothing additional needs to be done.
I received a 30 calendar day filing extension from the SEC for submitting to my DEA my annual report relating to a fiscal year ending in January 2020, February 2020, or March 2020. Do I need to do anything with SIPC?
No. If you received an extension from the SEC relating to the filing of an annual report related to a January, February or March 2020 fiscal year end, you do not need to do anything additional with SIPC.
No. The AUP Report must be filed directly with SIPC either by mail (1667 K St. N.W., Suite 1000 Washington, DC 20006-1620) or by email at firstname.lastname@example.org even if this report was included with the filing made through the FINRA Firm Gateway.
No. These forms must be filed directly with SIPC either by mail (P.O. Box 92185 Washington, DC 20090-2185) or by email at email@example.com.
Do I need to file the "Independent Accountant's Report on Applying Agreed Upon Procedures Related to an Entity's SIPC Assessment Reconciliation," or "Claim of Exclusion from Membership" (AUP Report) in accordance with SEC Rule 17a-5(e)(4)?
SIPC members are required to file this report if total revenues are more than $500,000. SIPC-3 filers must file this report regardless of the amount of their total revenues. Examples of the required filings for SIPC members and SIPC-3 filers are available at Agreed-Upon Procedures (AUP) Reports.
Please send the AUP Report separately from the Annual Audit Report.
There are two options to send the AUP Report to SIPC:
File the AUP Report with the copy of the SIPC-7 or SIPC-3 by sending an e-mail to firstname.lastname@example.org. In the subject line, list the SEC 8-# and the name of the firm for whom the report is being filed, or
Mail the AUP Report together with a copy of the SIPC-7 or SIPC-3 to SIPC’s street address:
1667 K St. N.W., Suite 1000
Washington, DC 20006-1620
No. The AUP Report must be filed with SIPC. Firms should no longer send it to the SEC.
The AUP Report must be filed within 60 days after the end of a broker-dealer’s fiscal year.
In general, anytime a Form SIPC-7 is amended by a member subject to the AUP Report, another AUP Report should be reissued covering that amended filing.
The procedure specified under (3)(i) of the rule requires the accountant to perform the following: "Compare assessment payments made in accordance with the General Assessment Payment Form (Form SIPC-6) and applied to the General Assessment calculation on the Form SIPC-7 with respective cash disbursements record entries." Does this procedure also include comparing any amount due in Form SIPC - 7 to supporting check/wire instructions?
Yes. The independent public accountant should compare any amount due in Form SIPC-7 to supporting check/wire instructions. The results of each procedure should include details relating to the source documents such as payment date and name and title or department who provided the information.
The procedure specified under (3)(ii) of the rule requires the accountant to perform the following: "For all or any portion of a fiscal year, compare amounts reflected in the audited financial statements required by an SEC rule with amounts reported in the Form SIPC - 7." In this procedure which "amounts" reflected in the audited financial statements should be compared with the Form SIPC-7?
Amounts from the audited financial statements that correspond with the itemized amounts reported in the Form SIPC-7 (for example, "Total Revenues") should be compared.
The procedure specified under (3)(iii) of the rule requires the accountant to perform the following: "Compare adjustments reported in the Form SIPC - 7 with supporting schedules and working papers supporting the adjustments." What "adjustments" are referenced in this procedure?
"Adjustments" refers to any additions and deductions in the line items reported in the Form SIPC-7.
The procedure specified under (3)(vi) of the rule requires the accountant to perform the following: "If exclusion from membership is claimed, compare the income or loss reported in the audited financial statements required by an SEC rule with the Form SIPC-3." What is required under this procedure?
The income reported in the financial statements should be compared to the "Schedule of Form SIPC-3 Revenues," provided by the broker dealer for their FYE attached with the Form SIPC-3 (filed for the broker-dealers' FYE) to ascertain that the Form SIPC-3 is consistent with the income reported. If exclusion from SIPC membership is claimed, the following is procedures are required:
- The accountant should thus compare the total amount included in the "Schedule of Form SIPC-3 Revenues," provided by the broker dealer for their FYE, to the total revenues reported on the audited financial statements for their FYE and note any differences. This schedule should accompany the (e)(4) report.
- The accountant should also compare each revenue classification reported in the Schedule of Form SIPC-3 Revenues prepared by the broker dealer for their FYE to supporting schedules and working papers noting any differences. The results of the procedure should include a description of the supporting schedules, working papers and/or source documentation prepared by the broker dealer.
- The accountant should also recalculate the arithmetical accuracy of the Total amount reflected in the Schedule of Form SIPC-3 Revenues prepared broker dealer for their FYE and in the related schedules and working papers, noting any differences. The results of the procedure should include a description of the supporting schedules, working papers, and source documentation prepared by the broker dealer.