SIPC Insurance

Folio, the broker dealer that provides execution, clearing, custody and other brokerage related services to clients within the Program, is a member of the Securities Investor Protection Corporation (SIPC), a non-profit corporation that provides account protection to customers of registered broker-dealers. SIPC protection does not cover losses from declining investment values. Rather, it protects investors against losses that stem from the financial failure of a brokerage company.

If a brokerage fails, SIPC will cover losses up to $500,000 (with a limit of $100,000 for cash losses). If an investor opens separate accounts under his or her name, the $500,000 SIPC protection does NOT apply to each account. For example, if you open an individual account and an IRA, SIPC will provide $500,000 in coverage for both accounts combined. To learn more about SIPC protection, click here: http://www.sipc.org/.

In addition to SIPC coverage, Folio has also purchased from certain underwriters at Lloyds supplemental customer securities insurance with a total aggregate limit of $50 million. This coverage is limited to a combined return of $10 million to any customer from SIPC and certain underwriters at Lloyds. Neither SIPC nor the insurance coverage protect against losses resulting from a decline in the market value of securities.

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