The Securities Investor Protection Corporation is a federally mandated, non-profit, member-funded, United States corporation created under the Securities Investor Protection Act of 1970 that mandates membership of most US-registered broker-dealers. the Securities Investor Protection Corporation (SIPC) Authorized and created under the Securities Investor Protection Act of 1970, the SIPC oversees the liquidation of broker-dealers who go bankrupt, lapse into financial trouble, or if the assets of their customers go missing.