Client assets are held by Shareholders Service Group, a member of the Securities Investor Protection Corporation (SIPC). Customers are afforded the benefits under the Securities Investor Protection Act of 1970. SIPC provides protection up to a $500,000 limit, of which $250,000 may be for cash balances. More information is available at www.sipc.org.
In addition to SIPC protection, our custodian Shareholder Services Group provides its brokerage customers coverage from Lloyd’s of London (www.lloyds.com) in excess of SIPC. This additional coverage becomes available in the event that SIPC coverage is depleted. $1 billion of total aggregate additional coverage protection is available through Lloyd’s of London. This is the maximum additional coverage protection available in the brokerage industry. Within the $1 billion in aggregate excess of SIPC protection, there is no per account dollar limit on coverage of securities. There is a per account limit of $1.9 million on coverage of cash. Neither SIPC nor excess of SIPC coverage protects investors against the decline in the market value of securities or losses incurred while broker dealer remains in business.
Shareholders Service Group uses the clearing services of Pershing LLC, which provides clearing services to firms collectively totaling more than $450 billion in client assets. Pershing is owned by The Bank of New York Mellon.