Safeguarding your assets is one of our highest priorities
Our account protection regimen meets or exceeds regulatory requirements and is supported by the strength, stability and financial integrity of our diversified business.
Federal account protection and extended coverage
SIPC Coverage
Securities Investor Protection Corporation (SIPC), established as a nonprofit entity by Congress in 1970, protects client assets in the event of a member firm’s bankruptcy or insolvency. Raymond James & Associates is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). An explanatory brochure is available upon request, or at sipc.org, or by calling 202-371-8300.
Account protection applies when a SIPC-member firm fails financially and is unable to meet obligations to securities clients, but it does not protect against market fluctuations.
Excess SIPC Coverage
In the vast majority of cases, SIPC is likely to meet 100% of the claims of individual investors.
However, to account for clients whose losses may be such that a deficiency still exists after they have received the full SIPC entitlement (subject to any sub-limit for claims for cash), Raymond James has purchased excess SIPC coverage through various syndicates of Lloyd’s, a London-based firm. Excess SIPC is fully protected by the Lloyd’s trust funds and Lloyd’s Central Fund. The additional protection currently provided has an aggregate firm limit of $750 million, including a sub-limit of $1.9 million per capacity for cash above basic SIPC for the wrongful abstraction of customer funds.1
Lloyd’s of London is the world’s leading insurance market. It was established in 1688 and provides specialist insurance coverage to businesses worldwide. It is regulated by the Financial Services Authority, which oversees all financial institutions in the United Kingdom. Its financial strength is constantly rated by independent rating agencies. At present, Lloyd’s enjoys an A+ rating from both Fitch and Standard & Poor’s and an A rating from A.M. Best.2 More information on Lloyd’s is available at Lloyds.com.
1In the event of the member firm’s bankruptcy or insolvency, clients may incur losses if the aggregate amount of insurance coverage has been exhausted.
2Ratings are subject to change and do not remove market risk.
Raymond James & Associates, Inc., is a member of the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000, including $250,000 for claims for cash. Money market fund shares are not considered cash for this purpose; they are securities. An explanatory brochure is available upon request by calling 202.371.8300 or visiting sipc.org. Raymond James & Associates, Inc., has purchased excess SIPC coverage through various syndicates of Lloyd’s, a London-based firm. Excess SIPC coverage is fully protected by the Lloyd’s trust funds and Lloyd’s Central Fund. The additional protection currently provided has an aggregate firm limit of $750 million, including a sub-limit of $1.9 million per customer for cash above basic SIPC for the wrongful abstraction of customer funds. SIPC coverage is not the same as, and operates differently from, FDIC deposit insurance. Account protection applies when an SIPC-member firm fails financially and is unable to meet obligations to securities clients, but it does not protect against market fluctuations.
Protection for Bank Deposits
Accounts held at Raymond James Bank (RJBank) are insured by the Federal Deposit Insurance Corporation (FDIC), an independent agency of the United States government, for up to $250,000 per depositor. The coverage limit refers to the total of all deposits that an account holder(s) has at each FDIC-insured bank. FDIC protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. FDIC deposit insurance is backed by the full faith and credit of the United States government.
FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts, and certificates of deposit (CDs). Raymond James & Associates, Inc. and Raymond James Financial Services, Inc. are affiliated with Raymond James Bank, N.A., member FDIC. Unless otherwise specified, products purchased from or held at affiliated Raymond James Financial, Inc. companies are not insured by the FDIC, are not deposits or other obligations of Raymond James Bank, are not guaranteed by Raymond James Bank and are subject to investment risks, including possible loss of the principal invested.
SIPC, Excess SIPC and FDIC Protection
| Type | SIPC | Express SIPC | FDIC |
|---|---|---|---|
| Covered Investments | Registered securities and cash | Registered securities and cash | Bank deposits |
| Available Coverage | Generally protects SEC-registered securities to a maximum of $500,000 including coverage of $250,000 for claims for cash. | Once a customer's SIPC limit is exhausted, excess SIPC provides an aggregate firm limit of $750 million, including a sub-limit of $1.9 million per customer for cash above basic SIPC for the wrongful abstraction of customer funds. | $250,000 insurance limit per depositor per insured institution. You may qualify for more than $250,000 in coverage if you own deposit accounts in different ownership categories (see FDIC Protection for Bank Deposits section). |
| Regulator/Licensor | U.S. Securities and Exchange Commission | Financial Conduct Authority (FCA), the independent regulator of the financial services industry in the United Kingdom | Federal Deposit Insurance Corporation (FDIC) |
Each of Raymond James & Associates, Inc., and Raymond James Financial Services, Inc., is a broker-dealer, is not a bank, and is not an FDIC member. All references to FDIC insurance coverage in relation to Brokered CDs and/or Market-Linked CDs address FDIC insurance coverage, up to applicable limits, at the insured depository institution that is disclosed in the offering documents. FDIC insurance only covers the failure of FDIC-insured depository institutions, not Raymond James & Associates, Inc., or Raymond James Financial Services, Inc. Certain conditions must be satisfied for pass-through FDIC insurance coverage to apply.
Additional protections
Raymond James executes a layered approach to client asset protection by combining the following practices:
Annual custody exam
Raymond James & Associates undergoes an annual custody exam as part of the US Securities and Exchange Commission’s rules related to custody and recordkeeping under the Investment Advisors Act of 1940 and Amendments made on December 30, 2009, (SEC’s Release No. IA-2968). Raymond James & Associates must select an independent public accountant to administer this examination to verify funds and securities held in select client accounts. KPMG, Raymond James’ independent public accountant, performs this exam.
Annual SOC-1 Type II Report
Raymond James & Associates issues an annual SOC-1 Type II Report, also commonly referred to as the SSAE16 report. This report describes controls of Raymond James & Associates that are relevant to custodial operations as well as the general control environment and information systems of Raymond James & Associates. The report opines on the suitability of the design and operating effectiveness of the relevant controls. KPMG also performs this review.