LPL is a member of Securities Investor Protection Corporation (SIPC) and, for accounts held at LPL, SIPC provides account protection up to a maximum of $500,000 per customer, of which $250,000 may be claims for cash. An explanatory brochure is available at www.sipc.org.
Additionally, through Lloyds of London, LPL Financial accounts have securities protection to cover the net equity of customer accounts up to an overall aggregate firm limit of $600,000,000, subject to conditions and limitations.
Balances invested in the Insured Cash Account are protected by Federal Deposit Insurance Corporation (FDIC) up to a maximum of $1.5 million for a single account holder, $3 million for a joint account.
LPL also purchases additional amounts of professional liability insurance.
This account protection applies when a SIPC member firm fails financially and is unable to meet obligations to securities customers, but it does not protect against losses from the rise and fall in the market value of investments.
The Private Trust Company, NA an affiliate of LPL Financial is a nondepository national banking association, which is regulated and reviewed by the Office of the Controller of the Currency (OCC).