Security and Privacy

Although there is no way to guarantee return on a particular investment or protection from market fluctuation, there are ways that investors' accounts are protected.


Insurance in case of liquidation

Securities are offered through Avantax Investment ServicesSM Member FINRA and SIPC.1 If a securities firm is forced to liquidate, the Securities Investor Protection Act of 1970 provides for insurance coverage to distribute funds and securities owed to investors.

Securities in accounts carried by National Financial Services LLC (“NFS”), a Fidelity Investments company, are protected in accordance with the Securities Investor Protection Corporation (“SIPC”) up to $500,000. For claims filed on or after July 22, 2010, the $500,000 total amount of SIPC protection is inclusive of up to $250,000 protection on claims for cash, subject to periodic adjustments for inflation in accordance with terms of the SIPC statute and approval by SIPC’s board of directors. NFS also has arranged for coverage above these limits. Neither coverage protects against a decline in the market value of securities, nor does either coverage extend to certain securities that are considered ineligible for coverage. For more details on SIPC or to request a SIPC brochure, visit or call 202-371-8300. SIPC insurance does not cover the market fluctuation of securities.

“Excess of SIPC” Coverage

In addition to SIPC protection, NFS provides additional “excess of SIPC” coverage for brokerage accounts through Lloyd’s of London, together with other insurers.1

The excess of SIPC coverage will be used only when SIPC coverage is exhausted. Like SIPC protection, excess of SIPC protection does not cover investment losses in customer accounts due to market fluctuation. It also does not cover other claims for losses incurred while broker-dealers remain in business. Total aggregate excess of SIPC coverage available through NFS’ excess of SIPC policy is $1 billion. Within NFS’ excess of SIPC coverage, there is no per-account dollar limit on coverage of securities, but there is a per-account limit of $1.9 million on coverage of cash. This is the maximum excess of SIPC protection currently available in the brokerage industry.

Lloyd’s of London currently has an A (excellent) rating from the ratings firm A.M. Best as of 2012, an A+ (strong) rating from Standard & Poor’s as of 2012 and an AA- (very strong) rating from Fitch Ratings as of 2014.2

1Fidelity’s excess of SIPC insurance is provided by Lloyd’s of London, together with AXIS Specialty Europe Ltd. and Munich Reinsurance Co.

2Ratings are subject to change. Click here for ratings explanations »

Errors and Omissions Coverage

Our financial advisors carry insurance for covered negligent acts and errors or omissions in conducting financial services. The policy covers up to $1 million for each wrongful act and $10 million in aggregate for the policy period.

Client Privacy

Avantax Investment ServicesSM, our affiliates and the entire securities industry go to great lengths to protect the privacy of clients’ personal financial information. The high marks investors give firms for their services reflect a simple business reality: By putting the interests of our customers first and helping them to succeed, we, in turn, do well.

We think that our ability to share financial information within our company enables us to more effectively serve our customers in several ways. By knowing about investors’ finances and goals, we are better informed to make suitable investment recommendations. That said, we understand the value and importance of keeping our clients’ information secure. When customers open accounts, we tell them about our own privacy protections and the different federal laws that also provide safeguards.

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