Securities Investor Protection Corporation (SIPC)

The Securities Investor Protection Corporation (SIPC), although created by the Securities Protection Act, is neither a government agency nor a regulatory authority. It is a non-profit, membership corporation funded by its member securities broker/dealers.
BAC Florida Investments (BFI) is a member of SIPC, an organization that protects customers of broker/dealers registered with the Securities and Exchange Commission (SEC), thereby promoting confidence in the United States securities markets.
The protection SIPC offers is against losses caused by the financial failure of the broker/dealer, but SIPC does not protect against any loss due to market fluctuations. As a result of BFI’s membership in the SIPC, securities in your account are protected up to $500,000 (of which $250,000 can be for claims for cash awaiting reinvestment).

Additional Protection

The customers of BFI benefit from additional protection in excess of SIPC coverage by virtue of BFI’s fully disclosed clearing arrangement with Pershing LLC a subsidiary of The Bank of New York Mellon. BFI executes, clears, and settles its general securities transactions through Pershing LLC a subsidiary of The Bank of New York Mellon. Pershing LLC a subsidiary of The Bank of New York Mellon has been a leading global provider of financial business solutions for over 70 years and serves many of the world’s most respected financial organizations, remaining committed to the safekeeping, servicing, segregation and reporting of assets held in custody.
Through the above mentioned arrangement, the securities of BFI’s clients are held in custody in customer’s accounts at Pershing LLC a subsidiary of The Bank of New York Mellon. Pershing LLC a subsidiary of The Bank of New York Mellon provides coverage in excess of SIPC limits from Lloyd’s of London, in conjunction with other insurers. Please note that the current excess of SIPC policy is scheduled to expire on December 10, 2011. The excess of SIPC coverage provides the following protection for assets held in custody by Pershing LLC a subsidiary of The Bank of New York Mellon:

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

The excess of SIPC coverage does not protect against loss due to market fluctuation.

BAC Florida Investments
Federally Registered Broker Dealer ( SEC )
Member of FINRA / SIPC