Account Protection and SIPC
When you buy securities through Capital One Investing, LLC (thanks for the business), the shares you buy are actually held at our clearing broker, Pershing LLC (member NYSE/FINRA/SIPC).
Because of this, let’s run down some facts about your account and how your monies are protected:
- Pershing provides account protection for the net equity of your securities positions.
- Net equity is the value of the securities held for your account, plus related cash, minus anything that you may owe us.
- Of the total value of your account, SIPC (Securities Investor Protection Corporation) provides $500,000 of net equity protection.
- This includes $250,000 for claims of cash awaiting reinvestment at ShareBuilder
- Pershing provides the additional protection (Excess SIPC) on terms similar to SIPC through a commercial insurer.
Account protection applies when a SIPC member firm fails (financially) and is unable to meet obligations to its customers. Account protection doesn’t protect against losses from the rise and fall in the market value of your investments.
For more information about SIPC, visit www.sipc.org/Who.aspx . You can also obtain a SIPC brochure by contacting SIPC at (202) 371-8300 or by email: firstname.lastname@example.org.
Tip: If you have any questions about our account protection policy, please contact us. Customer Service Associates are available from 8:00 AM to 9:00 PM ET, Monday through Friday (excluding market holidays).