SIPC maximum cash advance raised (Sec. 929)
The Securities Investor Protection Corp. will provide a higher level of protection to those who hold accounts in SIPC-insured financial institutions than in the past. When a brokerage or other such investment house fails, the SIPC returns stocks, bonds and other securities to their registered owners immediately.
However, sometimes a failed firm's assets need to be audited and liquidated to reimburse account holders. While that process is taking place, the SIPC sends cash advances to those waiting for the return of their assets.
In the past, the amount of a cash advance was limited to $100,000, regardless of the amount the former accountholder had coming to him. However, with the passage of financial reform, the limit has risen permanently to $250,000.