Securities Investors Protection Corporation (SIPC)

Both National Financial Services LLC and our broker-dealer are members of the Securities Investor Protection Corporation (SIPC), which was created in 1970 to protect customers of member brokerdealer firms in case of broker-dealer liquidation.

A nonprofit membership corporation, SIPC is funded by broker-dealers, and protects its membership by law. To cover assets such as yours, the SIPC fund is supported by:

  • $1 billion line of credit with a bank consortium
  • Borrowing power of up to $1 billion from the U.S.
    Treasury through the SEC

Securities in accounts carried by National Financial Services LLC are protected in accordance with the SIPC up to $500,000 (including cash claims limited to $250,000).

For details, please visit www.sipc.org.

Within certain limits, SIPC coverage applies to both investor securities held by National Financial Services LLC and cash on deposit that will be used to purchase securities, or that has been generated from the sale of securities. This SIPC coverage protects your assets in the unlikely event that National Financial Services LLC should fail to meet its obligations, but this SIPC coverage is separate from the SIPC coverage that is available should our broker-dealer fail to meet its obligations. It also does not protect against a decline in the market value of your securities.

When analyzing your SIPC coverage, you should consider the following additional facts:

  • The maximum SIPC coverage for covered amounts is $500,000.
  • The $500,000 total amount of SIPC protection is inclusive of up to $250,000 protection for claims for cash, subject to periodic adjustments for inflation in accordance with terms of the SIPC statute and approval by SIPC's Board of Directors.
  • These limits are on a per-customer basis, as defined in the Securities Investor Protection Act.
  • Most types of securities held in a brokerage account at National Financial Services LLC are protected, including stocks, bonds, notes, debentures, certificates of deposit (CDs), and mutual funds.