Safety of Client Assets
All Client Accounts are Custodied by Independent Third Party Custodians
LPL Financial provides custody services for client accounts. LPL is a publicly traded financial services company (NASDAQ: LPLA) with over 40 years in the industry. LPL Financial supports more than 12,000 financial advisors with custody of $279 billion in assets¹. For more information about LPL Financial, visit their website at www.lpl.com.
TD AMERITRADE Trust Company a wholly owned subsidiary of TD AMERITRADE Holding Corporation may also provide custody services for retirement plan accounts. TD AMERITRADE has custody of $325 billion in assets². For more information about TD AMERITRADE, visit their website at www.amtd.com.
¹As of December 31, 2009
²As of June 30, 2010
Customers Assets are Separate from Custodian’s Assets
Securities regulations protect your funds and your securities when you keep them at a broker/dealer. The Securities and Exchange Commission requires broker/dealers to deposit customer funds in a separate account, distinct from the firm’s own money. Securities held by clients in "street name" are kept securely with the Depository Trust Company, separate and distinct from the assets of securities firms. Regulated by the SEC and the Federal Reserve, the depository is a national clearinghouse for settling trades and a custodian of securities. Regulators and independent auditors periodically review firms’ financial records to ensure that clients’ assets are accurately tracked and held separately from the firms’ own holdings.
Customer Assets are Protected by SIPC
The LPL Financial SIPC membership provides account protection up to a maximum of $500,000 per customer, of which $100,000 may be in cash. For an explanatory brochure, visit www.sipc.org. Additionally, through Lloyds of London, LPL Financial accounts have additional securities protection to cover the net equity of customer accounts, up to an overall aggregate firm limit of $750,000,000.
Insured Cash Account Program
Through the LPL Financial multi-bank Insured Cash Account Program, deposits are eligible for up to $1 million of deposit insurance for individual accounts and for up to $2 million of deposit insurance for joint accounts through the FDIC. If you have any questions about FDIC insurance coverage, visit www.fdic.gov.