At LPL Financial, Your Account Carries SIPC and Excess of SIPC Coverage

 

LPL Financial is a member firm of the Securities Investor Protection Corporation (SIPC). Membership provides account protection up to a maximum of $500,000 per client, of which $250,000 may be claims for cash. Through London Insurers, LPL Financial accounts have additional securities protection to cover losses in client accounts above limits available from SIPC and would be payable up to an overall aggregate firm limit of $750 million, subject to conditions and limitations. This account protection does not protect against losses from the rise and fall in the market value of investments. This extensive coverage reflects a strong commitment to serving your investment needs.


 

LPL's Multi-Bank Cash Sweep Program Can Offer Increased FDIC Insurance Limits

 

While LPL is not a bank, the company does utilize cash sweep programs that deposit customers’ uninvested cash in banks that offer FDIC insurance. LPL offers two bank deposit sweep programs, the LPL Insured Cash Account (ICA) and LPL Deposit Cash Account (DCA). Cash balances in the ICA and DCA are eligible for FDIC insurance up to $250,000 for individuals and $500,000 for joint accounts per bank. For additional protection, LPL's multi-bank cash sweep programs are designed to reduce risk to investor cash by depositing that cash in multiple banks. This approach provides up to ten times the FDIC insurance coverage on cash in the ICA and DCA, making individual account holders eligible for up to $2.5M or, in the case of joint accounts holders, $5M, in FDIC insurance.