About Us

The Asian Investor Protection Corporation (AIPC) is an independent regulatory body whose primary role, is to return the funds and/or securities to investors, if the broker-dealer holding these assets becomes insolvent.

The AIPC was established as a non-profit, non-government, Membership Corporation, funded by member broker-dealers. In general, AIPC coverage is available in two distinct types of situations:

» Insolvent or Bankrupt Firms
In the securities industry, there are many cases where two separate broker-dealers work together to service a client's account. These firms are known as the introducing firm and the clearing firm. The introducing firm typically employs the individual broker who takes the client's order and then executes the transaction. The clearing firm will hold the client's cash and securities and send out the account statement, which include the assets held "on deposit" for the client. If the clearing firm becomes insolvent or otherwise cannot return the client's property, it is the AIPC's responsibility, not the introducing firm's, to make sure the client's cash and securities are returned.

» Unauthorized Trading
AIPC's coverage also includes protection against unauthorized trading in customers' securities accounts. This coverage can include unauthorized trading by persons associated with the introducing firm and can be utilized, even if the clearing firm is still solvent.