Securities Investor Protection Corporation (SIPC) Law and Legal Definition

Securities Investor Protection Corporation (SIPC) maintains a special reserve fund mandated by Congress, to protect customers' cash and securities that may be on deposit with a SIPC member firm. It uses the fund in the event the firm fails and is liquidated under the provisions of the SIPC Act. SIPC is not a government agency. It is a non-profit membership corporation created, however, by an act of Congress.