About LPL Financial
LPL Financial [Member NYSE, SIPC]
LPL Financial is one of the leading financial services companies and the largest independent broker/dealer in the nation, representing more than 13,500 independent financial advisors across the country*. At LPL Financial, we continue to be free to choose the products and services that address your needs because LPL Financial does not offer any proprietary products. This commitment to objective, conflict-free financial advice helps to preserve the integrity of the advice you receive. For decades, LPL has served as an enabling partner to financial advisors, supporting us in our goals of helping to protect and grow our clients’ wealth. Some of LPL’s services and resources include:
- The execution, clearance, and settlement of securities transactions
- Preparing and sending periodic statements of client accounts and transaction confirmations
- Custody (or safekeeping), receipt, and delivery of funds and securities
- The extension of margin credit upon approval
Securities Investor Protection Corporation (SIPC)
Both National Financial Services, LLC (NFS) and JW Cole are members of the Securities Investors Protection Corporation (SIPC), which was created in 1970 to protect customers of member broker/dealer firms in case of broker/dealer liquidation. A nonprofit membership corporation, SIPC is funded by broker/dealers, and protects their membership by law. To cover client assets, 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 NFS are protected in accordance with SIPC up to $500,000 (including cash claims up to $100,000). 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 NFS are protected, including stocks, bonds, notes, certificates of deposit (CDs), and mutual funds. For more detailed information, please see www.sipc.org.
Note: SIPC coverage does not extend to assets held in FDIC insured bank sweep deposits. Protection for these deposits is afforded by FDIC. For information on FDIC coverage limits, please see www.fdic.gov.
Excess SIPC Protection
To supplement its SIPC coverage National Financial Services (NFS) has arranged for additional protection for cash and covered securities from Lloyds of London, which currently has an A (Excellent) rating from insurance company ratings firm A.M. Best and A+ (Strong) ratings with “Stable Outlook” from Fitch Ratings and Standard & Poors*. This additional protection covers up to an aggregate loss limit of $1billion for all customer claims, of which $1.9 million may cover cash awaiting reinvestment at the individual account level. This is the highest level of excess SIPC coverage currently available. It is important to note that excess SIPC protection would only apply after SIPC protections were exhausted. For more information on Lloyd’s of London, please go to www.lloyds.com. Neither Lloyd’s coverage nor SIPC coverage protects against a decline in the market value of securities.
* as reported by Financial Planning magazine, June 1996-2015, based on total revenue.