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Securities Investor Protection Corporation; Order Approving the Determination of the Board of Directors of the Securities Investor Protection Corporation Not To Adjust for Inflation the Standard Maximum Cash Advance Amount and Notice of the Standard Maximum Cash Advance Amount
Plain English Summary
The Securities Investor Protection Corporation (SIPC) has decided not to increase the maximum cash advance amount, which remains at $250,000. This decision affects investors who rely on SIPC for protection against the loss of cash claims. SIPC believes that adjusting the cash advance amount for inflation without also adjusting the Federal Deposit Insurance Corporation (FDIC) deposit insurance limit would create inconsistencies between the two protections. Agents should inform their clients that the cash advance limit remains unchanged and that they should plan accordingly.
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standard maximum cash advance amount and the “standard maximum deposit <span class="match">insurance</span> amount” under the Federal Deposit <span class="match">Insurance</span> Act (both at $250,000). SIPC stated that increases to the limit of protection for cash claims under SIPA historically have moved in lockstep with increases in FDIC deposit <span class="match">insurance</span> and concluded that an inflation adjustment to the SIPA standard maximum cash advance amount without a corresponding adjustment to the FDIC standard maximum deposit <span class="match">insurance</span> amount would result in an undesirable divergence between the two.