Are my assets safe with Tarheel Advisors?
Yes, your accounts are afforded protection by the Securities Investor Protection Corporation (“SIPC”), of which Schwab is a member. SIPC protects the securities of its members’ customers up to $500,000 (including $100,000 for claims for cash). Another safeguard for the security of our client’s assets consists of additional “excess SIPC” protection that is provided through Schwab’s policy with underwriters at Lloyd’s of London. Under the policy Schwab has with Lloyd’s, excess SIPC protection for Schwab clients is provided to an aggregate of $600 million of securities and cash for all clients. The combined return to any client from a trustee, SIPC and Lloyd’s is $150 million, including cash of up to $1 million. This additional protection becomes available in the event that SIPC limits are exhausted. However, neither SIPC nor “excess SIPC” protection covers fluctuations in the market value of your securities.
