The U.S. Securities Investor Protection Corp. announced that it will move from charging flat fees to revenue-based assessments, starting next month.

The SIPC, which maintains a contingency fund for clients of failed brokerage firms, announced that as of April 1, member assessments will be based on 0.25% of the net operating revenues of member firms. Currently, SIPC members are assessed a flat US$150 per year.

“We are authorized under our charter from Congress to take steps necessary to ensure that we have sufficient reserves to allow us to carry out our mission and to ensure investor confidence in our operations. It is our intention to ensure that assessments keep pace with demands on our reserve,” SIPC president and CEO Stephen Harbeck said.

IE