Protecting Client Assets

NFS and PKS are members of the Securities Investor Protection Corporation (SIPC), which was created to protect customers of member broker/dealers when a brokerage firm is closed due to bankruptcy or other financial difficulties and customer assets are missing from accounts. SIPC protects covered securities in accounts carried by NFS up to $500,000 (including cash claims, which are limited to $250,000). Within certain limits, SIPC coverage applies to both investor securities held by NFS and cash on deposit that will be used to purchase securities, or that has been generated from the sale of securities.

For details, please see sipc.org.

To supplement its SIPC coverage, NFS has arranged for additional protection for cash and covered securities from Lloyd’s of London which currently has an A (Excellent) rating from ratings firm AM Best and an A+ (Strong) ratings with “Stable Outlook” from Fitch Ratings and Standard & Poor’s. This additional protection (“excess SIPC”) covers up to an aggregate loss limit of $1 billion 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. For more information on Lloyd’s of London, please go to lloyds.com.

It is important to bear in mind that SIPC coverage only applies when a brokerage firms is closed due to insolvency or other financial difficulties and then only if customer assets are missing from accounts. Excess SIPC protection would only be used were SIPC to be exhausted and then only for assets that would otherwise covered by SIPC. Finally, neither SIPC nor excess SIPC coverage protect against a decline in the market value of your securities.

If you have any additional questions about NFS, please go to mybrokerageinfo.com or feel free to contact your registered representative.