2019-06-19T12:43:51-05:00 2018-12-31 Grant Thornton LLP 1000 WILSON BLVD SUITE 1400 ARLINGTON VA 22209 990 2018-01-01 520910763 Securities Investor Protection Corporation % CHARLES E GLOVER VP-FINANC SECU 2023718300 1667 K St NW Suite 1000 Washington DC 200061620 JOSEPHINE WANG President and CEO 2023718300 2019-06-18 true Mary Torretta P00847851 7038477500 2019-06-13 209.220.136.124 54681420191705000000 2019-06-19 P AA918D8483008E32154F6CC583B06457B9AF9E42 93B6A5B2B9E73C0D543A64C04FD842B0CEFC817E 2018 2019-02-21 02:37:17Z 355846775 false X www.sipc.org X 1970 DC PROTECTION OF CUSTOMERS OF SIPC MEMBERS PURSUANT TO THE SECURITIES INVESTOR PROTECTION ACT OF 1970. MEMBERS AS OF 12/31/18 IS 3,621. 5 5 39 0 0 0 0 0 335525137 355846775 0 0 0 0 335525137 355846775 0 0 0 0 11397789 12382252 0 0 0 55820251 169984205 67218040 182366457 268307097 173480318 3106021784 3296907939 870123241 904021139 2235898543 2392886800 X WHEN A BROKERAGE FIRM IS CLOSED DUE TO BANKRUPTCY OR OTHER FINANCIAL DIFFICULTIES AND CUSTOMER ASSETS ARE MISSING, SIPC STEPS IN AS QUICKLY AS POSSIBLE AND, WITHIN CERTAIN LIMITS, WORKS TO RETURN CUSTOMERS' CASH, STOCK AND OTHER SECURITIES, AND OTHER CUSTOMER PROPERTY. WITHOUT SIPC, INVESTORS AT FINANCIALLY TROUBLED BROKERAGE FIRMS MIGHT LOSE THEIR SECURITIES OR MONEY FOREVER OR WAIT YEARS WHILE THEIR ASSETS ARE TIED UP IN COURT. MISSION IS STATUTORY. false false SIPC INITIATED NO NEW CUSTOMER PROTECTION PROCEEDING IN 2018. TOTAL PROCEEDINGS COMMENCED UNDER SIPC TO DATE ARE 330. IN 2018, 1 PROCEEDING WAS COMPLETED AND 2 PROCEEDINGS HAD SATISFIED CUSTOMER CLAIMS WITH LITIGATION MATTERS PENDING. CASH AND SECURITIES DISTRIBUTED FOR ACCOUNTS OF CUSTOMERS DURING 2018 TOTALED APPROXIMATELY $1.1 BILLION. APPROXIMATELY 13 ADDITIONAL CUSTOMERS RECEIVED DISTRIBUTIONS. 182366457 false false false true false false false false false true false false false true false true false false false false false false false false false false false false true false false false false false false false false false false false false false false true 19 0 true 39 true false false false false false false false false X 5 5 false false false false true false true true true true false true true true true true true true true false X CHARLES E GLOVER VP-FINANC 2023718300 1667 K ST NW STE 1000 Washington DC 200061620 X Daniel M Covitz Director 3.0 0.0 X 0 0 0 Anthony D'Agostino Director 2.0 0.0 X 6250 0 0 W Moses Kim Director (from 8/27/18) 3.0 0.0 X 0 0 0 William S Jasien Director 3.0 0.0 X 6250 0 0 Gregory S Karawan Director 3.0 0.0 X 6250 0 0 Jared C Sawyer Director (through 6/29/18) 2.0 0.0 X 0 0 0 Stephen P Harbeck President & CEO 40.0 0.0 X 934782 0 -326720 Josephine Wang General Counsel & Secretary 40.0 0.0 X 984825 0 -117834 Joseph S Furr Jr VP - Finance (through 1/31/18) 40.0 0.0 X 103102 0 9516 Karen L Saperstein Vice President - Operations 40.0 0.0 X 390081 0 94195 Charles E Glover AVP-Fin., VP-Fin.(from 2/1/18) 40.0 0.0 X 328941 0 -80843 Kevin H Bell SR ASSOC GEN COUN FOR DISP RES 40.0 0.0 X 337154 0 -299869 Kenneth J Caputo SR Associate General Counsel 40.0 0.0 X 420351 0 -267974 Christopher H LaRosa Sr Assoc. Gen. Coun Litigation 40.0 0.0 X 318248 0 23482 Abraham L Wons Director - Risk Management 40.0 0.0 X 289028 0 133389 Hemant Sharma Sr Assoc Gen Counsel-Int'l 40.0 0.0 X 280444 0 5300 4405706 0 -827358 27 false true false McGinn and Company 2111 Wilson Boulevard Suite 200 ARLINGTON VA 22201 Investor Education 215000 Buck Global LLC 420 Lexington Avenue Suite 2220 NEW YORK NY 10170 Actuarial Services 177340 Korn Ferry International 200 Park Avenue 37th Floor NEW YORK NY 10166 Staff Recruitment 150000 Grant Thornton 1000 Wilson Boulevard Suite 1400 ARLINGTON VA 222093927 Accounting Fees 132750 4 0 MEMBER ASSESSMENTS 900099 291940037 291940037 INTEREST ON U.S. GOV'T SECURITIES 900099 63906738 63906738 355846775 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 355846775 355846775 0 0 0 0 0 0 3207097 0 5940706 1111558 1716914 405977 0 154430 185898 7730 0 0 357450 163053 657729 1247440 0 1021065 124915 0 35771 0 0 672878 38193 CUSTOMER PROTECTION 165002562 PERSONAL PROPERTY TAX 39367 DIRECTOR'S EXPENSES 13813 TEMPORARY SERVICES 40311 221600 182366457 849459 25865236 0 0 0 0 155003478 148852878 0 0 0 0 0 0 0 0 1727675 1760910 7936844 5709614 2641782 2227230 2945799390 3118201685 0 0 0 0 0 0 0 0 3106021784 3296907939 17484769 17582537 0 0 5338472 2638602 0 0 0 0 0 0 0 0 0 0 847300000 883800000 870123241 904021139 X 2235898543 2392886800 0 0 0 0 2235898543 2392886800 3106021784 3296907939 X 173480318 -18197141 1705080 X false true X true false false false false SCHEDULE C, PART III-A The Securities Investor Protection Corporation ("SIPC") is a non-profit membership organization created under the Securities Investor Protection Act, 15 U.S.C. 78aaa et seq. ("SIPA"). SIPA provides that "SIPC, its property, its franchise, capital, reserves, surplus, and its income, shall be exempt from all taxation now or hereafter imposed by the United States or by any State or local taxing authority, except that any real property and any tangible personal property (other than cash and securities) of SIPC shall be subject to State and local taxation to the same extent according to its value as other real and tangible personal property is taxed." During its 2018 tax year, SIPC made lobbying expenditures to outside firms in the amount of $7,730. 1455533 644770 810763 5269076 4523232 745844 1212235 541612 670623 2227230 0 EST COST TO COMPL CUST PROTEC PROCEE 883800000 883800000 337649634 -18197141 -18197141 355846775 355846775 180661377 -1705080 -1705080 182366457 182366457 OTHER ADJUSTMENTS TO REVENUE SCHEDULE D, PART XII, LINE 2D PENSION AND POST-RETIREMENT BENEFIT CHANGES OTHER THAN NET PERIODIC PENSION COSTS $(1,705,080) X X false true X X X X X false false false Stephen P Harbeck President & CEO 564478 0 364123 0 6181 0 -364100 0 37380 0 608062 0 0 0 Josephine Wang General Counsel & Secretary 458642 0 522373 0 3810 0 -133417 0 15583 0 866991 0 0 0 Karen L Saperstein Vice President - Operations 310170 0 76101 0 3810 0 58815 0 35380 0 484276 0 0 0 Charles E Glover AVP-Fin., VP-Fin.(from 2/1/18) 278651 0 49000 0 1290 0 -96954 0 16111 0 248098 0 0 0 Kenneth J Caputo SR Associate General Counsel 315368 0 103693 0 1290 0 -297933 0 29959 0 152377 0 0 0 Christopher H LaRosa Sr Assoc. Gen. Coun Litigation 275330 0 42228 0 690 0 3628 0 19854 0 341730 0 0 0 Abraham L Wons Director - Risk Management 259048 0 28000 0 1980 0 87853 0 45536 0 422417 0 0 0 Hemant Sharma Sr Assoc Gen Counsel-Int'l 253364 0 26780 0 300 0 -15684 0 20984 0 285744 0 0 0 FIRST-CLASS TRAVEL SCHEDULE J, PART I, LINE 1A First class train fare was allowed pursuant to policy and paid for Mr. Harbeck, Ms. Saperstein, Mr. Bell and Mr. Sharma when it was less than or equivalent to the cost of coach airfare and related ground transportation. First class airfare was allowed for Mr. Harbeck on an international flight. Companion expenses for meals were paid for Mr. D'Agostino ($203.51), Mr. Jasien ($339.51), Mr. Karawan ($339.51) and Ms. Saperstein ($357.61). These de minimis amounts were not reported on 1099-Misc for the individuals. Retirement and Other Deferred Compensation Schedule J, Part II, Column C The DECREASE IN ACTUARIAL VALUE OF A DEFINED BENEFIT RETIREMENT AND A DEFINED BENEFIT POST RETIREMENT HEALTH PLAN is INCLUDED IN SCHEDULE J, PART II, COLUMN (C) AS PART OF DEFERRED COMPENSATION. Signing Officer Form 990, Part II, Signature Block Josephine Wang became the President and CEO of SIPC effective April 1, 2019. MEMBERS AND STOCKHOLDERS FORM 990, PART VI, SECTION A, LINE 6 SIPC IS A MEMBERSHIP CORPORATION. MEMBERSHIP IS BY OPERATION OF LAW. STOCKHOLDERS OR PERSONS OTHER THAN GOVERNING BODIES FORM 990, PART VI, SECTION A, LINE 7B NO DECISIONS OF THE GOVERNING BODY ARE SUBJECT TO APPROVAL BY MEMBERS. HOWEVER, PROPOSED RULE CHANGES AND BYLAW CHANGES ARE SUBJECT TO REVIEW BY THE U.S. SECURITIES AND EXCHANGE COMMISSION. NAME AND ADDRESS OF OFFICERS WHO CANNOT BE REACHED IN THE ORGANIZATION'S MAILING ADDRESS FORM 990, PART VI, SECTION A, LINE 9 -Daniel M. Covitz, Deputy Dir., Fed Res. Bd., Div of Research & Statistics, Bd. of Gov. of the Fed Res. System, 20th & Constitution Avenue, N.W., Washington, DC 20551 -Anthony D'Agostino, Maven Medical, 2321 Cavesdale Road, Owings Mills, MD 21117 -W. Moses Kim, Director, Office of Fin'l Inst. Policy, U.S. Dept. of the Treasury, 1500 Pennsylvania Ave., N.W., Washington, DC 20220 -William S. Jasien, Stonehedge Global Partners, 7421 Dunquin Court, Clifton, VA 20124 -Gregory S. Karawan, Genworth Financial, 6620 W. Broad St., Building 2 - 8th floor, Richmond, VA 23230 -Jared C. Sawyer, Deputy Asst. Sec'y for Fin'l Inst. Policy, U.S. Dept. of the Treasury, 15th & Pennsylvania Ave., N.W., Washington, DC 20220 FORM 990 REVIEW PROCESS FORM 990, PART VI, SECTION B, LINE 11B The Form 990 was prepared by Grant Thornton, an independent accounting firm, with support from the SIPC accounting staff, directed by the Vice President-Finance, using the books and records of the corporation after the completion of an audit by independent Certified Public Accountants. The filing was reviewed by the President & CEO of SIPC. Prior to the filing, copies of the completed Form 990, including required schedules, as it was filed with the IRS, were provided for review to the Audit and Budget Committee of the SIPC Board of Directors at its June 2019 meeting. The Form 990 was also provided to the SIPC Board of Directors for its review at its June 2019 meeting with recommendations by the Audit and Budget Committee. CONFLICT OF INTEREST POLICY MONITORING & ENFORCEMENT FORM 990, PART VI, SECTION B, LINES 12B AND 12C SIPC has written Business Ethics and Whistleblower Policies which include provisions regarding conflicts of interests. They are incorporated into the written Personnel Guide. Upon employment and annually thereafter each employee, including officers, must sign a document stating that they have read and understand those provisions. During the annual audit, the independent Certified Public Accountants inquire of the staff on a test basis as to their understanding of the policies and report their findings to the Audit and Budget Committee of the SIPC Board of Directors. Upon appointment and at least annually thereafter, each non-government Director shall certify in writing that he or she has read and understood and will adhere to the Code of Ethics for Directors: that he or she has no known conflicts of interest. The Government Directors must adhere to their government standards and codes of ethics. Each director also must immediately disclose any conflict as it arises and recuse themselves from any decision so affected. Any such event is documented in the meeting minutes. PROCESS FOR DETERMINING COMPENSATION FORM 990, PART VI, SECTION B, LINES 15A AND 15B Compensation for all SIPC officers is set by the SIPC Board of Directors annually in conformity with compensation guidelines adopted by the Board and based on the recommendations of the Compensation Committee of the SIPC Board of Directors. They review Form 990 data for other organizations, salary studies, U.S. Government pay scales, securities industry data, and inflation statistics from the U.S. Department of Labor, Bureau of Labor Statistics, as well as performance and work loads. Generally, an independent compensation study is commissioned every three years. The last study was done in 2016. HOW DOCUMENTS ARE MADE AVAILABLE TO THE PUBLIC FORM 990, PART VI, SECTION C, LINE 19 SIPC WAS CREATED BY THE SECURITIES INVESTOR PROTECTION ACT (15 U.S.C. 78AAA. ET SEQ.). THIS STATUTE, SIPC RULES AND THE SIPC BYLAWS, WHICH INCLUDES "CONDUCT OF EMPLOYEES OF THE SECURITIES INVESTOR PROTECTION CORPORATION" IN SECTION 5, ARE POSTED ON THE SIPC WEBSITE: WWW.SIPC.ORG. THE CURRENT, AS WELL AS THE ENTIRE PRIOR 47 YEAR HISTORY OF, SIPC ANNUAL REPORTS, INCLUDING THE AUDITED FINANCIAL STATEMENTS, ARE ALSO POSTED ON THE WEBSITE. COPIES WILL BE MAILED UPON REQUEST. OTHER CHANGES IN NET ASSETS AND FUND BALANCES FORM 990, PART XI, LINE 9 PENSION AND POST-RETIREMENT BENEFIT RELATED CHANGES OTHER THAN NET PERIODIC PENSION COSTS $1,705,080