SIPC Insurance / Excess SIPC Insurance

The Securities Investor Protection Corporation ("SIPC") provides $500,000 for securities, including $100,000 for cash claims protection ("SIPC coverage"). www.sipc.org. 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 market fluctuations.

Above and beyond SIPC coverage, First Clearing, LLC maintains additional insurance coverage ("Excess SIPC") through London Underwriters (led by Lloyd's of London Syndicate) ("Lloyd's"), which has received an A+ financial strength rating from Standard and Poor's and Fitch Ratings, as well as an A rating from A.M. Best.

For clients who have received the full SIPC payout limit, First Clearing's policy with Lloyd's provides additional coverage above the SIPC limits for any missing securities and cash in client brokerage accounts up to a firm aggregate limit of $1 billion, with up to $1.9 million for cash per client. Lloyds provides to participating securities broker/dealers "Excess SIPC" protection for institutional and individual clients' securities accounts. This Excess SIPC protection is excess of the protection provided by the Securities Investor Protection Act ("SIPA"), which is administered by the Securities Investor Protection Corporation ("SIPC").

SIPC and Excess SIPC do not protect against losses from the rise and fall in the market value of investments, and does not cover all assets.