(June 26, 2001) – “There has been too much confusion about what the Securities Investor Protection Corporation is and what it does,” said Marc Beauchamp, executive director of the North American Securities Administrators Association. “The General Accounting Office`s recommendations, if followed, would help investors by clearing up some of the misconceptions about SIPC insurance, what it covers and, more importantly, what it doesn`t cover.
“The larger issue is whether the SIPC fund is adequate or coverage should be expanded to include other kinds of investor losses.
“Our financial markets are vastly different today than they were when the SIPC was established three decades ago. Today nearly half of all households have money invested in the stock market, compared to roughly one in ten households in the early Seventies.
“Given these profound changes, we continue to believe that it`s time to take a good hard look at the SIPC`s role in protecting investors and ensuring continued faith in our markets and financial institutions.”