E.K. Riley has selected First Clearing* to hold the assets in your account. First Clearing* is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company. First Clearing* is a leading provider of clearing and custody services to quality financial institutions, including one of the largest retail brokerage firms in the United States. Their services include transaction execution, operational support, and the production of account statements and tax reporting documents.
First Clearing* is a member of the Securities Investor Protection Corporation (SIPC), a nonprofit, congressionally chartered, membership corporation created in 1970. SIPC protects clients against the custodial risk of a member brokerage firm becoming insolvent by replacing missing securities and cash up to $500,000, including up to $250,000 in cash, per client in accordance with SIPC rules. (Note that SIPC coverage is not the same as, nor is it a substitute for, FDIC deposit insurance. Securities purchased through First Clearing are not FDIC-insured, however cash in some account types may be covered by FDIC insurance and not by SIPC coverage.) For more information about SIPC, please visit sipc.org. You may visit fdic.org for additional FDIC insurance information.
Above and beyond SIPC coverage, First Clearing* maintains additional insurance coverage through Lexington Insurance Company, an AIG Company (referred to here as “Lexington”). For clients who have received the full SIPC payout limit, First Clearing’s* policy with Lexington provides additional coverage above the SIPC limits for any missing securities and cash in client investment accounts up to a firm aggregate limit of $1 billion (including up to $1.9 million for cash per client). In other words, the aggregated amount of all client losses covered under this policy is subject to a limit of $1 billion with each client covered up to $1.9 million for cash.
About Lexington Insurance Company
Lexington Insurance Company is the leading U.S.-based surplus lines insurer. For more information about Lexington, please visit lexingtoninsurance.com.
The Limits of SIPC and Lexington’s Insurance Coverage
Please note that coverage provided by SIPC and Lexington does not protect against the loss of market value of securities. All coverage is subject to the specific policy terms and conditions.
FDIC Insurance Limits
Current FDIC insurance covers a depositor for $250,000, but through our convenient, automated service you get even more protection.
At First Clearing*, cash deposits are covered by FDIC insurance for a total of at least $1,000,000 if you are enrolled in our Bank Deposit Sweep Program.* Through this program, uninvested cash balances (principal and interest) are automatically deposited, or “swept,” into four affiliate banks. Depositors are covered for up to $250,000 per owner at the first affiliate bank plus $250,000 per account in each of the two additional affiliate banks – quadruple the coverage you would receive at one bank.