SIPC's job is safeguard the money and securities of brokerage clients when broker goes bankrupt. One of the tasks is to speed up the return of these possessions to the clients.
Going by past precedent, what is the typical time taken for SIPC to return money and stocks to brokerage clients when the broker goes under?
As per the SIPC website:
Most customers can expect to receive their property in one to three months. When the records of the brokerage firm are accurate, deliveries of some securities and cash to customers may begin shortly after the trustee receives the completed claim forms from customers, or even earlier if the trustee can transfer customer accounts to another broker-dealer. Delays of several months usually arise when the failed brokerage firm’s records are not accurate. It also is not uncommon for delays to take place when the troubled brokerage firm or its principals were involved in fraud.
Source link: http://www.sipc.org/Who/SIPCQuestions/SIPCQuestion3.aspx
