Account Protection

Your partner in developing your portfolio and your future.

The decision to make Capitol Securities your partner in developing your portfolio—and future—is a solid one. We have been helping clients achieve their goals since 1981. We are registered with the Securities and Exchange Commission (SEC) and are members of the Financial Industry Regulatory Authority (FINRA), the Municipal Securities Rulemaking Board, and the Securities Investor Protection Corporation (SIPC).

Powerful connections and account protections

Capitol Securities is connected to all securities exchanges through our clearing firm, Raymond James Financial, Inc. Capitol Securities also has its own trade desk for special handling of Over-The-Counter (OTC) orders.

Capitol Securities and Raymond James Financial, Inc. are both members of the Securities Investor Protection Corporation® (SIPC®).  As a result, securities in your account are protected up to $500,000 (of which $250,000 can be for claims for cash awaiting reinvestment).

In addition to SIPC protection, Raymond James provides coverage in excess of SIPC limits from certain underwriters at Lloyd’s, in conjunction with another commercial insurance company. The excess of SIPC insurance program is valid through February 10, 2014.

It provides the following protection for Raymond James Financial, Inc.’s global client assets:

  • An aggregate loss limit of $1 billion for eligible securities—over all client accounts
  • A per-client loss limit of $1.9 million for cash awaiting reinvestment—within the aggregate loss limit of $1 billion

Neither SIPC protection nor the additional excess of SIPC insurance policy protect against loss due to market fluctuation of investments.

An excess of SIPC claim would only arise if Raymond James failed financially and client assets for covered accounts, as defined by SIPC, cannot be located due to theft, misplacement, destruction, burglary, robbery, embezzlement, abstraction, failure to obtain or maintain possession or control of client securities, or to maintain the special reserve bank account required by applicable rules.

The leader of the excess of SIPC coverage program is Lloyd’s, which currently holds A+ ratings from Fitch Ratings and Standard & Poor’s® (S&P®), and an A rating from A.M. Best. These ratings are based on the financial strength of the company and are subject to change by the rating agencies at any time.

For more information about Lloyd’s, please see www.lloyds.com. Answers to frequently asked questions, as well as additional information about the financial strength of Raymond James and the protection of assets held in our custody, are available on https://www.raymondjames.com/about-us/by-the-numbers.

SIPC and excess insurance coverage does not apply to unregistered investment contracts or any interest in gold, silver, or other commodities, commodity contracts, or commodity options.

Account protection does not include losses from the rise or fall in the market value of a client’s investments.

*The Securities Investor Protection Corporation (SIPC) is a non-profit organization established by Congress to insure client accounts against the failure of member brokerage firms.  For more information about SIPC, please visit their website at www.sipc.org or call 202-371-8300.

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