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Zorluk: OrtaSIPC vs. FDIC Protection and Coverage Limits

An investor maintains a single individual account at a SIPC-member broker-dealer that goes into financial insolvency. At the time of liquidation, the account holds 200,000inequitysecurities,200,000 in equity securities, 300,000 in uninvested cash balances, and $100,000 in physical gold futures contracts. What is the total maximum dollar amount protected by SIPC for this investor's account?

  1. $450,000Cevap
  2. B
    $500,000
  3. C
    $600,000
  4. D
    $250,000

Cevap

450,000totalcoverage(450,000 total coverage ( 200,000 for equity securities plus $250,000 maximum cash coverage limit)
SIPC provides protection up to 500,000totalperseparatecustomerforbroker−dealerinsolvency,butcapscashcoverageat500,000 total per separate customer for broker-dealer insolvency, but caps cash coverage at 250,000. In this scenario, the 200,000inequitysecuritiesisfullyprotected,whilethe200,000 in equity securities is fully protected, while the 300,000 in cash is protected up to the 250,000maximumlimit.FuturescontractsareexcludedfromSIPCcoverage.Thus,totalprotectedcoverageequals250,000 maximum limit. Futures contracts are excluded from SIPC coverage. Thus, total protected coverage equals 200,000 + 250,000=250,000 = 450,000.

Adım Adım Çözüm

1
Identify eligible and non-eligible assets under SIPC coverage rules.
Equity securities (200,000)anduninvestedcash(200,000) and uninvested cash ( 300,000) are eligible assets. Commodity futures contracts ($100,000) are explicitly not covered by SIPC.
SIPC protects cash and securities held in customer accounts, but excludes commodities, futures contracts, fixed annuities, and currency.
2
Apply the SIPC cash coverage sub-limit.
Cash coverage is capped at 250,000(outofthe250,000 (out of the 300,000 held in the account).
SIPC rules mandate a maximum cash protection limit of $250,000 per separate customer account.
3
Sum covered securities and covered cash, checking against the overall SIPC limit.
200,000(securities)+200,000 (securities) + 250,000 (cash cap) = $450,000 total protection.
The total protection of 450,000isunderthemaximumoverallSIPCcoveragecapof450,000 is under the maximum overall SIPC coverage cap of 500,000 per separate customer.

Anahtar Kavram

SIPC Protection Limits and Asset Eligibility
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SIPC vs. FDIC Protection and Coverage Limits

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