Clearing Firm / SIPC Coverage
The assets in our clients' accounts are protected in a number of important ways, both by Maxim Group, and our clearing agent, Pershing LLC, a subsidiary of the Bank of New York Mellon Corporation.
Pershing has been a leading provider of financial business solutions for 70 years and serves many of the world's most respected financial organizations, remaining focused on the segregation, safekeeping, servicing, and reporting of clients' assets in their custody. Pershing is well capitalized with capital ratios exceeding those required by regulators. Please refer to Pershing's Statement of Financial Condition at www.pershing.com for additional information.
Pershing's parent company, The Bank of New York Mellon Corporation, is one of the world's strongest global financial institutions. The Bank of New York Mellon ranks among the top financial services companies with a market capitalization of approximately $34 billion as of December 2009, and holds $22.3 trillion in assets under custody and administration. Please refer to www.bnymellon.com for additional information.
The financial strength of Maxim Group and Pershing provides the first, and perhaps most important, measure of protection for our clients' assets. Maxim group and Pershing are each registered broker-dealers with the Securities Exchange Commission (SEC) and members of the Financial Industry Regulatory Authority (FINRA). Both the SEC and FINRA require us to comply with various rules intended to minimize the chance of financial failure and maximize the protection of our clients' assets.
One of those rules, the SEC Customer Protection Rule requires Pershing to segregate investor assets which means that even if Pershing fails, client assets will be separate from Pershing's own assets and safe. Maxim Group and Pershing are also subject to the SEC Net Capital Rule, which requires each of us to maintain enough liquid assets in the event of firm failure and liquidation. Because Pershing has custody of our clients' assets, it must maintain an even higher level of net capital than Maxim Group which further increases the security of our clients' assets.
Maxim Group and Pershing are also members of the Securities Investor Protection Corporation (SIPC), a non-profit organization that provides coverage to investors if their brokerage firm becomes insolvent. It covers the replacement of missing securities and cash up to $500,000, with a limit of $100,000 for cash. We also provide additional coverage in excess of SIPC limits through account protection that Pershing has purchased from Lloyd's of London, one of the world's best known insurance brands. This coverage will protect assets up to an overall aggregate level of $1 billion for assets in custody at Pershing and its London affiliate, Pershing Securities Limited, including up to $1.9 million in cash awaiting reinvestment in an individual account. This provides the highest level of protection available in the industry today.
For more details on the protection and security of assets held in an account with Maxim Group, please visit SIPC's website at www.sipc.org . You may also visit Lloyd's of London website at www.lloyds.com .