Status of Customer Fund
Pie Chart: Status of Customer Funds

Recoveries & Settlement Agreements Reported as of September 16, 2016:


$11.219 Billion

All amounts approximate

Seventh Pro Rata Interim Distribution (1.305%)

On June 30, 2016, the seventh pro rata interim distribution of recoveries from the Customer Fund to eligible BLMIS customers commenced after the United States Bankruptcy Court for the Southern District of New York approved the SIPA Trustee’s allocation and distribution motion on June 15, 2016.

As of September 16, 2016, the SIPA Trustee has distributed approximately $190.2 million on a pro rata basis to BLMIS account holders with allowed claims. The seventh distribution represents 1.305 percent of each claim dollar and will be paid on claims relating to 972 BLMIS accounts, to record holders of allowed claims as of June 15, 2016. The average payment for an allowed claim issued in the seventh distribution will total $195,727.68. The smallest payment totals $136.69 and the largest payment is $31,942,323.51. In addition, SIPC will be reimbursed for its advances to accounts that the seventh interim distribution has fully satisfied. All allowed claims totaling $1,200,024.90 or less will be fully satisfied after the distribution.

Sixth Pro Rata Distribution (8.262%)

The sixth pro rata interim distribution from the Bernard L. Madoff Investment Securities LLC (BLMIS) Customer Fund to eligible customers commenced on December 4, 2015. As of September 16, 2016, approximately $1.209 billion has been distributed to BLMIS account holders with allowed claims in the sixth distribution, representing approximately 8.262 percent of the allowed claim amount of each account, unless the claim is fully satisfied.

Fifth Pro Rata Interim Distribution (2.743%)

The fifth pro rata interim distribution from the Bernard L. Madoff Investment Securities LLC (BLMIS) Customer Fund to eligible customers commenced on February 6, 2015. As of September 16, 2016, approximately $403.4 million has been distributed to BLMIS account holders with allowed claims in the fifth distribution, representing approximately 2.743 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied. 

Fourth Pro Rata Interim Distribution (3.180%)

The fourth pro rata interim distribution from the Bernard L. Madoff Investment Securities LLC (BLMIS) Customer Fund to eligible customers commenced on May 5, 2014. As of September 16, 2016, approximately $468.2 million has been distributed to BLMIS accountholders with allowed claims in the fourth distribution, representing approximately 3.180 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied. 

Third Pro Rata Interim Distribution (4.721%):

The third pro rata interim distribution from the Bernard L. Madoff Investment Securities LLC (BLMIS) Customer Fund to eligible customers commenced March 29, 2013. As of September 16, 2016, approximately $696.3 million has been distributed to BLMIS accounts with allowed claims in the third distribution, representing approximately 4.721 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied. 

Second Pro Rata Interim Distribution (33.556%):

The second pro rata interim distribution from the Bernard L. Madoff Investment Securities LLC (BLMIS) Customer Fund to eligible BLMIS customers commenced September 19, 2012. As of September 16, 2016, approximately $4.978 billion has been distributed to BLMIS accounts with allowed claims through the second pro rata interim distribution, representing approximately 33.556 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied.

First Pro Rata Interim Distribution (4.602%):

As of September 16, 2016, approximately $685.3 million has been returned to BLMIS customers with allowed claims via the first pro rata interim distribution, which commenced on October 5, 2011, representing approximately 4.602 percent of the allowed claim amount of each individual account, unless the claim is fully satisfied.

Amount of SIPC advances reimbursed to SIPC on fully satisfied accounts - $170.8 Million

SIPC is authorized to administer funds to customers of failed brokerage firms as an advance against recovered assets. In this case, SIPC to date has advanced to the court-appointed SIPA Trustee approximately $836.6 million in funds to distribute to BLMIS customers with allowed claims.

According to the provisions of SIPA, SIPC is reimbursed for its advances to customers once each respective customer claim is fully satisfied. As of the seventh pro rata interim distribution in the BLMIS liquidation proceeding, SIPC received $170.8 million in reimbursement from the BLMIS Customer Fund for advances paid on fully satisfied claims, leaving $665.8 million in SIPC advances outstanding.

One hundred percent of the SIPA Trustee's recoveries will be allocated to the BLMIS Customer Fund for distribution to BLMIS customers with allowed claims. The reimbursements to SIPC are for the cash advances to BLMIS customers with allowed claims, which are made when the BLMIS customer claim is first allowed.

Icon: More Information Distributions from Customer Fund through September 16, 2016
$8.801 Billion

In the SIPA liquidation of BLMIS, unresolved matters remain that require court determination. Until resolved, these matters require reserves. These include 71 claims have been “deemed determined pending litigation” and the SIPA Trustee must establish sufficient reserves to ensure that he would be able to make all pro rata distributions to date to all potentially eligible claimants, whether or not their claims are allowed at the time of distribution.

Required reserve for deemed determined claims: Approximately $1.934 billion

General reserve: Approximately $200 million

Other reserves, including reserve for deferred payments and unallocated funds: Approximately $51 million

Icon: More Information CUSTOMER FUND, including required reserves as of September 16, 2016
$2.185 Billion

Portions of recoveries related to certain settlement agreements must be held in reserve due to appeals and other issues. These funds cannot be either allocated to the Customer Fund or distributed to BLMIS customers with allowed claims until these issues are resolved. As of September 16, 2016, approximately $232.1 million relating to settlement reserves and other matters must be held in reserve.

Icon: More Information Amount Unavailable Due to Appeals & Reserves as of September 16, 2016
$232.1 Million
Recoveries to Reported Fees Ratio
Bar Graph: Recoveries to Reported Fees Ratio (click to enlarge)