Who is a “Customer” under the CAPCO Excess SIPC Surety Bond?
Under the Bond, a Customer is a client of the Firm who satisfies the definition of “Customer” set forth in section 78lll(2) of the SIPA. Generally speaking, this is a client who has a claim for net equity based on securities held in an account with the Firm in the ordinary course of the Firm’s broker/dealer business and includes a client of an introducing broker for whom the Firm clears trades on an omnibus basis, to the extent that such client is considered, under SIPA, to be a Customer of the Firm. See www.sipc.org for more information. Q. Are any Customers excluded from coverage under the Excess SIPC Surety Bond? No, all Customers of the Firm are eligible for coverage under the Bond, subject to its terms. However, the protection does not apply to all losses. For example, it does not apply to any loss that arises directly or indirectly through fraudulent, dishonest, or wrongful acts on the part of the Customer, or through any such act in which the Customer is implicated. Q. What are
