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 over 75 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. Please refer to 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 $49.8 billion as of December 31, 2016, and holds $29.9 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 measure of protection for our clients’ assets. While financial strength does not protect against loss due to market fluctuation, our internal controls and regulatory oversight help provide stability and focus. Maxim Group and Pershing are both registered broker-dealers with the U.S. Securities and Exchange Commission (SEC), the Municipal Securities Rulemaking Board (MSRB), all 50 states as well as the District of Columbia and the Commonwealth of Puerto Rico, and certain U.S. territories. Maxim Group and Pershing are also members of the Financial Industry Regulatory Authority (FINRA), NASDAQ Stock Market and NYSE Arca, Inc.

The SEC Customer Protection Rule requires Pershing to segregate investor assets, which are fully paid-for from its own assets (with quarterly vault inspections). Pershing maintains enough liquid assets, net of any liabilities, to protect clients’ fully paid-for assets in the unlikely event of Pershing’s failure and liquidation.

Maxim Group and Pershing are also members of the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org. Pershing provides additional coverage from certain underwriters from Lloyds insurance market. The additional coverage program is valid through February 10, 2018 for Pershing LLC accounts. It provides the following protection for Pershing LLC global client assets:

• An aggregate loss limit of $1 billion for eligible securities – over all client accounts.
• A per-client loss limit of $1.9 million for cash awaiting reinvestment – within the aggregate loss limit of $1 billion

Neither SIPC nor the additional coverage protects against loss due to market fluctuation of investments.

An excess of SIPC claim would only arise if Pershing failed financially and client assets for covered accounts-as defined by SIPC-cannot be located due to theft, misplacement, destruction, burglary, robbery, embezzlement, abstraction, failure to obtain or maintain possession or control of client securities, or to maintain the special reserve bank account required by applicable rules.

For more details on the protection and security of assets held in an account with Maxim Group, please click here. You may also visit FINRA’s website at www.finra.org and Lloyd’s website at www.lloyds.com.