The SEC'​s Investor.​gov website released an "​Investor Bulletin" to educate investors on bank sweep programs. They write, "​Broker-​dealers may offer you several options for managing your cash. One option, a bank sweep program, typically involves the automatic transfer (​or "​sweep") of cash in the brokerage account into a deposit account at a bank that may or may not be affiliated with the broker-​dealer. Other options include leaving cash in the brokerage account, or sweeping cash to one or more money market mutual funds. This investor alert focuses only on the first option: bank sweep programs. The terms and conditions of bank sweep programs vary. The protections for cash at a bank primarily will derive from banking laws and regulations, including FDIC deposit insurance." It continues, "​You should review your brokerage account agreement and statement to determine if you are participating in a bank sweep program for your cash. Many bank sweep programs are the "​default" option for managing cash in a brokerage account, so you may have agreed to participate in your broker-​dealer'​s bank sweep program when you opened your brokerage account. `​Beginning in March 2014, your broker-​dealer must obtain your written consent to participate in a bank sweep program for any new account you open. If the description of the bank sweep program is not clear to you, you may want to consider asking your broker-​dealer to explain how its bank sweep program works. You also may want to consider asking your broker-​dealer about other options for your cash as well as the return offered, risks and costs of each option."

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