Under what circumstances would a SIPC claim or excess account protection claim be appropriate?
SIPC and excess account protection claims would only arise where Pershing failed financially and client assets for covered accounts, as defined by SIPC (for Pershing LLC accounts) or FSCS (for Pershing Securities Limited accounts), cannot be located due to theft, misplacement, destruction, burglary, robbery, embezzlement, abstraction, failure to obtain or maintain possession or control of customer securities or to maintain the special reserve bank account required by applicable rules (SEC 15c-3 in the US for Pershing LLC). If a customer’s assets are missing for any of these reasons when Pershing is being liquidated, they would be replaced by the underlying account protection (SIPC) program up to published limits, then the Lloyd’s excess account protection program would respond where the excess loss met the criteria discussed in the previous sentence.
Related Questions
- In addition to the SIPC protection available, Pershing provides excess account protection through Lloyds of London. What is excess account protection?
- Under what circumstances would a SIPC claim or excess account protection claim be appropriate?
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