Account Protection

At LPL Financial, Your Account Carries SIPC and Excess of SIPC Coverage

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SIPC Securities Investor Protection Corporation

LPL Financial is a member firm of the Securities Investor Protection Corporation (SIPC). Membership provides account protection up to a maximum of $500,000 per client, of which $250,000 may be claims for cash. For an explanatory brochure, please visit http://www.sipc.org/. Additionally, through London Insurers, LPL Financial accounts have additional securities protection to cover the net equity of client accounts up to an overall aggregate firm limit of $575,000,000, subject to conditions and limitations.

The account protection applies when a SIPC member firm fails financially and is unable to meet its obligations to securities clients, but it does not protect against losses from the rise and fall in the market value of investments. This extensive coverage reflects a strong commitment to serving your investment needs.

FDIC Insured Cash Account (“ICA”) program.

Under the ICA program, your available cash balances (from securities transactions, dividend and interest payments and other activities) in your eligible accounts will automatically be deposited into interest-bearing Federal Deposit Insurance Corporation (FDIC) insured deposit accounts (“Deposit Accounts”) at one or more of the banks or other depository institutions on the Priority Bank List. For yields for money market mutual funds that LPL Financial continues to offer, please contact your LPL Financial advisor. For more on the insured cash account coverage please visit LPL Financial insured cash account program FAQ’s.

Benefits of the Insured Cash Account Program

The Insured Cash Account program offers you a number of unique benefits, including:

FDIC insurance on cash sweep balances up to $1.5 million for single and trust account holders and $3 million for joint account holders. The Insured Cash Account program leverages multiple banks so you can enjoy higher FDIC insurance coverage. At each bank, your insured cash account deposits are insured by the FDIC to a maximum amount of $250,000 per person when aggregated with all the other deposits held by you at the same bank. If you and your spouse have a joint account, your account would be eligible for up to $500,000 of FDIC deposit insurance per bank. Keep in mind that other investment holdings are still subject to loss which is not covered by FDIC.

  • Higher interest rates for higher household assets. The interest rate you earn on your cash sweep balances can be based on the aggregate value of all eligible and participating accounts in your household, not just your cash sweep balances. To take advantage of this benefit, ask your financial advisor to combine monthly brokerage statements for all accounts in your household
  • Convenient Cash Management Services. You have the flexibility to choose value-added services that meet your cash management needs including free check writing, Visa check card with ATM access and Internet bill pay.