2020-06-12T13:24:42-05:00 2019-12-31 Grant Thornton LLP 1000 WILSON BLVD SUITE 1400 ARLINGTON VA 22209 990 2019-01-01 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 2020-06-12 true Mary Torretta P00847851 7038477500 72.192.248.92 54681420201645000001 2020-06-12 P 03CBAE45BD8E2F188EB28F31E827C7F4869431D2 03CBAE45BD8E2F188EB28F31E827C7F4869431D2 2019 2021-04-22 16:20:28Z JOSEPHINE WANG 1667 K St NW 1000 Washington DC 200061620 393422450 false X www.sipc.org X 1970 DC Protection of customers of SIPC members pursuant to the Securities Investor Protection Act of 1970. Copy of 2019 Annual Report is attached. Members as of 12/31/19 is 3,524. 5 5 40 0 0 0 0 0 355846775 393422450 0 0 0 0 355846775 393422450 0 0 0 0 12382252 12555907 0 0 0 169984205 -36775875 182366457 -24219968 173480318 417642418 3296907939 3655191234 904021139 732280007 2392886800 2922911227 X SIPC's MISSION IS STATUTORY. 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. false false SIPC INITIATED NO NEW CUSTOMER PROTECTION PROCEEDING IN 2019. TOTAL PROCEEDINGS COMMENCED UNDER SIPC TO DATE ARE 330. IN 2019, 1 PROCEEDING WAS COMPLETED AND 2 PROCEEDINGS HAD SATISFIED CUSTOMER CLAIMS WITH LITIGATION MATTERS PENDING. CASH AND SECURITIES DISTRIBUTED FOR ACCOUNTS OF CUSTOMERS DURING 2019 TOTALED APPROXIMATELY $1.6 BILLION. APPROXIMATELY 13 ADDITIONAL CUSTOMERS RECEIVED DISTRIBUTIONS. 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 40 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 20006 X Josephine Wang Pres. (from 4/1/19),GC & Sec'y 40.0 0.0 X 943861 0 874882 Charles E Glover Vice President - Finance 40.0 0.0 X 340876 0 974021 Kenneth J Caputo GC (from 4/19/19), Sr Assoc GC 40.0 0.0 X 501781 0 797627 Christopher H LaRosa Sr. Assoc. GC - Litigation 40.0 0.0 X 325668 0 563336 Hemant Sharma Sr. Assoc. GC - International 40.0 0.0 X 282526 0 534585 Kevin H Bell Sr. Assoc. GC - Dispute Res. 40.0 0.0 X 331002 0 476912 Karen L Saperstein Vice President - Operations 40.0 0.0 X 402693 0 298734 Abraham L Wons Director - Risk Management 40.0 0.0 X 298589 0 266030 Timothy Timanus AVP - Operations 40.0 0.0 X 283717 0 222071 Stephen P Harbeck President & CEO (thru 3/31/19) 40.0 0.0 X 319966 0 78806 Anthony D'Agostino Director 2.0 0.0 X 6585 0 0 William S Jasien Director 3.0 0.0 X 6585 0 0 Gregory S Karawan Director 2.0 0.0 X 6250 0 0 Daniel M Covitz Director 3.0 0.0 X 0 0 0 W Moses Kim Director 5.0 0.0 X 0 0 0 4050099 0 5087004 27 false true false Buck Global LLC 420 Lexington Ave Suite 2220 NEW YORK NY 10170 Actuarial Services 203723 The Northridge Group Inc 9700 West Higgins Rd Suite 600 ROSEMONT IL 60018 Mgt. Consulting 181755 Grant Thornton LLP 1000 Wilson Boulevard Suite 1400 ARLINGTON VA 22209 Accounting Fees 162510 Eversheds Sutherland US LLP 700 6th St NW Suite 700 WASHINGTON DC 20001 Legal Consulting 115218 McGinn and Company 2111 Wilson Boulevard Suite 200 ARLINGTON VA 22201 Investor Education 110372 5 0 MEMBER ASSESSMENTS 900099 317610000 317610000 0 0 INTEREST ON U.S. GOV'T SECURITIES 900099 75812450 75812450 0 0 393422450 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 393422450 393422450 0 0 0 0 0 0 3078666 0 5894709 1509102 1662763 410667 0 183709 162511 12832 0 0 684003 148862 548668 1491038 0 1005684 149745 0 49488 0 0 617859 37200 CUSTOMER PROTECTION -42244615 0 0 0 PERSONAL PROPERTY TAX 33930 0 0 0 DIRECTOR'S EXPENSES 21413 0 0 0 TEMPORARY SERVICES 291864 0 0 0 29934 -24219968 0 0 0 25865236 6453325 0 0 0 0 148852878 163086364 0 0 0 0 0 0 0 0 1760910 2103734 7959512 6327477 2227230 1632035 3118201685 3481915776 0 0 0 0 0 0 0 0 3296907939 3655191234 17582537 18641551 0 0 2638602 1138456 0 0 0 0 0 0 0 0 0 0 883800000 712500000 904021139 732280007 X 2392886800 2922911227 0 0 0 0 2392886800 2922911227 3296907939 3655191234 X 417642418 115979049 -3597040 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 2019 TAX YEAR, SIPC MADE LOBBYING EXPENDITURES TO AN OUTSIDE FIRM IN THE AMOUNT OF $12,832. 1464977 773973 691004 5279401 4908709 370692 1215134 644795 570339 1632035 0 EST COST TO COMPL CUST PROTEC PROCE 712500000 712500000 509401499 115979049 115979049 393422450 393422450 -27817008 -3597040 -3597040 -24219968 -24219968 OTHER ADJUSTMENTS TO REVENUE SCHEDULE D, PART XII, LINE 2D PENSION AND POST-RETIREMENT BENEFIT RELATED CHANGES OTHER THAN NET PERIODIC PENSION COSTS $(3,597,040) X X false true X X X X X false false false Stephen P Harbeck President & CEO (thru 3/31/19) 234208 0 84094 0 1664 0 67076 0 12948 0 399990 0 0 0 Josephine Wang Pres. (from 4/1/19),GC & Sec'y 547158 0 392893 0 3810 0 854754 0 23173 0 1821788 0 0 0 Karen L Saperstein Vice President - Operations 318020 0 80528 0 4145 0 254485 0 47427 0 704605 0 0 0 Charles E Glover Vice President - Finance 287686 0 51900 0 1290 0 955087 0 23983 0 1319946 0 0 0 Kenneth J Caputo GC (from 4/19/19), Sr Assoc GC 356657 0 143144 0 1980 0 765453 0 35692 0 1302926 0 0 0 Kevin H Bell Sr. Assoc. GC - Dispute Res. 294821 0 30000 0 6181 0 432664 0 48664 0 812330 0 0 0 Christopher H LaRosa Sr. Assoc. GC - Litigation 282443 0 42535 0 690 0 541222 0 25903 0 892793 0 0 0 Abraham L Wons Director - Risk Management 264859 0 31750 0 1980 0 212926 0 56005 0 567520 0 0 0 Timothy Timanus AVP - Operations 251527 0 31500 0 690 0 201647 0 25314 0 510678 0 0 0 Hemant Sharma Sr. Assoc. GC - International 250076 0 32000 0 450 0 482527 0 54899 0 819952 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, MR. CAPUTO, MR. GLOVER, MS. SAPERSTEIN, MR. BELL, MR. SHARMA AND MR. TIMANUS WHEN IT WAS LESS THAN OR EQUIVALENT TO THE COST OF COACH AIRFARE AND RELATED GROUND TRANSPORTATION. FIRST CLASS AIRFARE WAS ALLOWED PURSUANT TO POLICY FOR MR. CAPUTO AND MR. SHARMA ON AN INTERNATIONAL FLIGHT IN EXCESS OF 14 HOURS. WRITTEN POLICIES SCHEDULE J, PART I, LINE 1B ON AN INFREQUENT BASIS, SIPC'S PRESIDENT APPROVES PAYMENT OF DE MINIMIS AND REASONABLE EXPENSES OF COMPANIONS AT BUSINESS FUNCTIONS. Retirement and Other Deferred Compensation SCHEDULE J, PART II, COLUMN C THE INCREASE 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. 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, 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, 12500 FAIR LAKES CIRCLE - SUITE 150, FAIRFAX, VA 22033 - GREGORY S. KARAWAN, GENWORTH FINANCIAL, 6620 W. BROAD ST., BUILDING 2 - 8TH FLOOR, RICHMOND, VA 23230 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 2020 MEETING. THE FORM 990 WAS ALSO PROVIDED TO THE SIPC BOARD OF DIRECTORS FOR ITS REVIEW AT ITS JUNE 2020 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, THAT APPLY TO ALL EMPLOYEES. 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. ANY CONFLICT OF INTEREST MUST BE REPORTED TO AN EMPLOYEE'S SUPERVISOR, AND REVIEW OF SUCH MATTERS IS UNDERTAKEN BY THE OFFICE OF THE GENERAL COUNSEL. PENDING REVIEW OF ANY CONFLICT, AN EMPLOYEE WILL BE PROHIBITED FROM WORKING ON THE RELEVANT MATTER. 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 BEGUN IN 2019. 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 49 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 $(3,597,040) FORM 990 PART IX LINE 24 - OTHER EXPENSES DESCRIPTION:PERSONNEL RECRUITMENT TOTAL EXPENSES:29934