Pershing

The firm with which you have opened your securities account has retained Pershing LLC (Pershing) to provide certain record keeping or operational services. These services—such as the execution and settlement of securities transactions, custody of securities and cash balances, and extension of credit on margin transactions—are provided under a written Clearing Agreement between Pershing and your firm.

Pershing is a member of the Securities Investor Protection Corporation (SIPC®). As a result, investor-owned assets held in custody by Pershing are protected by SIPC, up to $500,000 in value, including $100,000 in cash awaiting reinvestment. SIPC provides protection for eligible client assets held in custody by a SIPC member brokerage firm should the SIPC member firm fail financially and become unable to meet the obligations to its clients. SIPC does not protect against losses due to market fluctuation or for client assets not held by a SIPC member. For more information about investor asset protection, visit SIPC’s web site at www.sipc.org.

For additional security, Pershing also provides coverage in excess of SIPC limits for your client accounts through Lloyd’s of London. The excess insurance policy purchased through Lloyd’s of London provides the following excess account protection for assets held in custody with Pershing LLC and its London-based affiliate, Pershing Securities Limited:

An aggregate loss limit of $1 billion for eligible securities—over all client accounts
A per client loss limit of $1.9 million for cash awaiting reinvestment—within the aggregate loss limit of $1 billion

This excess account protection offers the highest level of coverage that is available in the industry. For more information about Lloyd’s of London, visit their web site at www.lloyds.com. Please note that SIPC and the excess account protection purchased through Lloyd's of London does not protect assets that are not held in custody by Pershing.