To Clients and Prospective Clients:
The Mid Atlantic companies are dedicated to providing the very best financial products, services, and technology to our business partners for the ultimate benefit of you, their valued clients.
Whether you are a client of a financial advisor, a retirement plan trustee/beneficiary, or an employee of a financial institution or asset manager, we invite you to learn more about us, and look forward to serving you through our business partner with which you are associated.
Safety and Security of Your Assets
National Financial Services LLC (‘NFS”) Custody:
Mid Atlantic’s primary broker/dealer clearing relationship is with National Financial, a Fidelity Investments® company. We were among the first broker/dealers to establish a clearing relationship with NFS, dating back over 30 years ago.
The safety of investors’ account assets is one of the most important benefits we can provide. 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. The $500,000 total amount of SIPC protection is inclusive of up to $250,000 protection for 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 additional protection for cash and covered securities called “excess of SIPC” coverage, from Lloyd’s of London together with other insurers.* This additional protection would only be used when SIPC coverage is exhausted. Total aggregate excess of SIPC coverage available through NFS’s excess of SIPC policy is $1 billion. Within NFS’s excess of SIPC coverage, there is no per account dollar limit of coverage of securities, but there is a per account limit of $1.9 million on coverage of cash awaiting investment.
This is the maximum excess of SIPC protection currently available in the brokerage industry. Neither coverage protects against a decline in the market value of securities, nor do they cover other claims for losses incurred while broker-dealers remain in business. Certain securities are not eligible for SIPC or excess of SIPC coverage.**
For more details on SIPC, or to request an SIPC brochure, visit www.sipc.org.
Mid Atlantic Trust Company (“MATC”) Custody:
MATC is a non-depository state chartered trust company, subject to regulation, examination, and supervision by the South Dakota Department of Labor and Regulation, Division of Banking. As a non-depository trust company, MATC ensures the safekeeping of client assets under custody by managing, tracking, and holding title to the actual securities. MATC does not accept deposit accounts, make loans, or (except to fund trade settlements) incur any broker or bank debt or similar borrowings. All cash that MATC’s customers entrust to it is deposited with banks and brokers that MATC chooses, including Mid Atlantic Capital Corporation, and is subject to each financial institution’s separate insurance coverages***. We utilize only banks with an FDIC rating of either “adequately” or “well” capitalized. Mid Atlantic is registered as trustee, custodian, or trading agent of record for more than 750,000 customer mutual fund accounts for which it processes in excess of 1.8 million trades per month.
* Fidelity’s excess of SIPC insurance is provided by Lloyd’s of London together with Axis Specialty Europe Ltd. and Munich Reinsurance Co.
** Among the assets not typically eligible for SIPC or excess of SIPC protection are commodity futures contracts, currency, and precious metals, as well as investment contracts (such as limited partnerships) and fixed annuity contracts that are not registered with the U.S. Securities and Exchange Commission under the Securities Act of 1933.
*** FDIC or SIPC coverage for each depositor account is limited according to FDIC and SIPC rules as applicable. Investment market values are not insured and may decline. For details go to www.fdic.gov and www.sipc.org.
Our companies serve as trustee, custodian or broker/dealer for more than $127 billion in assets on behalf of more than 265,000 customer accounts
Mid Atlantic companies process more than 1.8 Million trades per month on behalf of customer accounts
Mid Atlantic provides access to a universe of more than 20,000 mutual funds and ETFs
More than 8,000 plan advisors and brokers utilize Mid Atlantic’s platform for custody, trading, and settlement of customer business