HR1982 - Restoring Main Street Investor Protection and Confidence Act

The proposed legislation has two main objectives. The first is to reaffirm the dominant Congressional intent of the Securities Investor Protection Act of 1970(SIPA) that the efficient functioning of U.S. securities markets required the restoration and maintenance of confidence by individual, non-professional investors in the reliability and integrity of market’s broker/dealer system. The central mechanism to achieve that goal was the creation of a fund capitalized and maintained by industry assessments ( the SIPC Fund), which, in the event of a broker/dealer failure, will provide to innocent investors defined, guaranteed protections for their losses not otherwise recovered in the firm’s liquidation. The second objective is a series of reforms of SIPA to achieve greater fairness for victims; to assure the prompt availability of SIPC Fund relief; to emphasize the intended independence and fiduciary responsibility of the Trustee; to reduce the likelihood of a “bailout” of private interests by the U.S. Treasury; and
to strengthen the plenary oversight authority of the SEC over SIPC’s administration of the Act.

Click here for a summary description of the bill’s provisions with policy rationale.

Click here for full Bill Text.

Click here for current Co-Sponsors.

For Information on the Corresponding Senate Bill – S.67, click here.

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