All SIPC member broker-dealers must disclose their “Member SIPC” status and provide customers with information about SIPC protection, which covers up to $500,000 per customer account (with a $250,000 limit for cash claims in the event of firm failure or insolvency. This disclosure must clearly explain that SIPC protects against firm bankruptcy but does NOT cover market losses, investment performance declines, or losses from commodities/futures trading. The disclosure must be provided at account opening, included on confirmations and statements, posted on the firm’s website, and updated as necessary, with firms required to make the SIPC educational brochure available and avoid any misleading claims about the scope of coverage.
