Does SIPC protection from a failed US Brokerage apply to foreign companies?

Hi there,

I checked on Securities Investor Protection Corporation (Securities Investor Protection Corporation website) which, when a US securities broker fails, protects the first $500,000 per customer (including up to $100,000 for cash). But does this protection extend to UK citizens? What about a UK Ltd company? What if the shares held by the US broker on behalf of the UK Ltd company are Swiss shares? Securities Investor Protection Corporation does not mention these complications....

Any advice appreciated....

Regs,
Jack

Jack,

Unless brokers have specific insurance covering overseas investors, then non-US residents (individuals) are not covered by US regulations. I don't see why companies should be exempt, either.

Grant.

grantx said:

Jack,

Unless brokers have specific insurance covering overseas investors, then non-US residents (individuals) are not covered by US regulations. I don't see why companies should be exempt, either.

Grant.

Click to expand...

It seems overseas IB customers are protected by SIPC and a Lloyds insurance. I am a french client of IB (UK), and i just have asked for it to IB.

grantx said:

Jack,

Unless brokers have specific insurance covering overseas investors, then non-US residents (individuals) are not covered by US regulations. I don't see why companies should be exempt, either.

Grant.

Click to expand...

Hi Grantx,

Do you have the sources to confirm you statement that non-US residents (individuals) are not covered by US regulations (SIPC)?

Thanks

Jaen