What is the Customer Asset Protection Company (“CAPCO”)?
CAPCO is an insurance company licensed by the state of Vermont. CAPCO provides to participating securities broker/dealers “Excess SIPC” net equity protection for institutional and individual clients’ securities accounts. This Excess SIPC protection is excess of the protection provided by the Securities Investor Protection Act (“SIPA”), which is administered by the Securities Investor Protection Corporation (“SIPC”). Other domestic insurance companies that have provided Excess SIPC protection announced in 2003 that they would no longer offer this protection. The Excess SIPC protection offered by CAPCO is similar to the Excess SIPC protection that has previously been available from the domestic insurance market. It is intended to protect U.S. client accounts and follows the underlying terms of SIPA. Similar to the coverage previously available, each client account, subject to certain conditions and limitations, will be protected up to its net equity for securities and cash held in the ac
