How your accounts are protected
National Financial Services, LLC [Member NYSE, SIPC]
National Financial Services, LLC (NFS), a Fidelity Investments ® company, serves as the custodian for all clients who elect to direct their investment advisory and brokerage transactions through Financial Planning Hawaii (FPH) and J.W. Cole, Inc. and/or J.W. Cole Advisors, LLC. Established in 1983, NFS is one of the nation’s largest providers of brokerage services. NFS’ parent company, Fidelity Investments, is one of the world’s largest financial services providers with custodied assets of more than $2.7 trillion as of September 30, 2008. As custodian for J.W. Cole brokerage and investment advisory accounts, NFS is responsible for:
- The execution, clearance, and settlement of securities transactions
- Preparing and sending periodic statements of client accounts and transaction confirmations
- Custody (or safekeeping), receipt, and delivery of funds and securities
- The extension of margin credit upon approval
J.W. Cole, Inc. [Member FINRA, SIPC]
J.W. Cole, Inc. serves as a dual-registered broker-dealer/registered investment advisor. Through its relationship with J.W. Cole, Inc. and J.W. Cole Advisors, LLC, Financial Planning Hawaii offers clients asset-based advisory and brokerage account trading platforms. In this capacity, J.W. Cole serves the following functions:
- Opening, approving, and monitoring client accounts
- Repond to any customer complaints that may arise
- Ensuring that FPH and its personnel maintain compliance with all regulatory authority requirements
Securities Investor Protection Corporation (SIPC)
National Financial Services, LLC (NFS) and J.W. Cole, Inc. are each members of both the Financial Industry Regulatory Authority (FINRA) and the Securities Investors Protection Corporation (SIPC). SIPC was created in 1970 to protect customers of member broker/dealer firms in case of broker/dealer liquidation. A nonprofit membership corporation, SIPC is funded by broker/dealers, and protects their membership by law. To cover client assets, the SIPC fund is supported by
$1 billion line of credit with a bank consortium
Borrowing power of up to $1 billion from the U.S. Treasury through the SEC.
Securities in accounts carried by NFS are protected in accordance with SIPC up to $500,000 (including cash claims up to $100,000). These limits are on a per-customer basis, as defined in the Securities Investor Protection Act. Most types of securities held in a brokerage account at NFS are protected, including stocks, bonds, notes, certificates of deposit (CDs), and mutual funds.
Note: SIPC coverage does not extend to assets held in FDIC insured bank sweep deposits. Protection for these deposits is afforded by FDIC. For information on FDIC coverage limits, please see www.fdic.gov.
NFS has also arranged for additional protection for cash and securities to supplement its SIPC coverage. This additional protection carried by NFS covers total account net equity in excess of the $500,000/$100,000 coverage provided by SIPC. Neither SIPC nor the additional coverage protects against loss of market value of the securities.
In accordance with the FINRA Conduct Rule 2342, regarding SIPC information, please know that you may contact SIPC for additional information at (202)371-8300 or visit them on the Web at www.sipc.org. To read their informational brochure titled “How SIPC Protects You”, please visit click here