Although there is no way to guarantee return on a particular investment or protection from market fluctuation, there are ways that investors' accounts are protected.
1) Insurance in case of liquidation - Securities are offered through 1st Global Capital Corp., NASD, SIPC*. If a securities firm is forced to liquidate, the Securities Investor Protection Act of 1970 provides for insurance coverage to distribute funds and securities owed to investors.
Securities in accounts carried by National Financial Services, LLC, are protected by the Securities Investor Protection Corporation up to $500,000 (including cash claims limited to $100,000). NFS has arranged for additional unlimited insurance protection for cash and securities to supplement its SIPC coverage. Neither coverage protects against a decline in the market value of securities.
2) Errors and omissions coverage - Our Financial Advisors carry insurance for covered negligent acts, and errors or omissions in conducting financial services. The policy covers up to $1 million for each wrongful act and $5 million in aggregate for the policy period.
3) Audits and regulations - Securities are offered through 1st Global Capital Corp., member NASD, SIPC. The NASD oversees compliance with stringent standards of conduct and enforces a variety of regulations that govern member firms' dealings with customers and their financial and operational conditions. NASD Regulation conducts periodic examinations of all member firms to protect and serve the interests of investors.
* For more information on SIPC, visit their Web site at www.sipc.org or call (202) 371-8300. SIPC insurance does not cover the market fluctuation of securities. |
