RBC Correspondent Services
Advanced Wealth Planning Group - Protecting Your Assets.
In today’s rapidly changing financial markets, Advanced Wealth Planning Group recommends you to entrust your investments to a strong partner. RBC Capital Markets, LLC (RBC CM), provides the protection you need. We view the safety and security of the assets in your accounts as a priority equal in importance to the work we do helping you build, enjoy and share your wealth.
KEY DISTINCTION BETWEEN BANKS & BROKERAGES
BANK ACCOUNT
Banks are only required to have a fraction of all deposited money on hand to ensure they can meet minimum cash flow needs. Should a bank fail, and not have sufficient funds to fully reimburse its depositors, Federal Deposit Insurance Corporation (FDIC) protects depositors of member banks, up to certain limits.
BROKERAGE ACCOUNT
In the brokerage industry, on the other hand, your assets are held in custody by your brokerage firm. Unless you are using margin, we act as a custodian of your assets — holding them on your behalf, but not lending them to others. So your assets should always be available to you.
THOROUGH MEASURES TO PROTECT YOUR ASSETS
The assets held in an account at RBC CM have four layers of protection:
1 The fiscal stewardship of RBC CM,
2 Compliance with Securities and Exchange Commission (SEC) requirements,
3 Securities Investor Protection Corporation (SIPC) insurance1 ; and
4 An additional insurance policy purchased from Lloyd’s of London.2
1 Neither SIPC protection, nor protection in excess of that provided by SIPC, covers a decline in the value of your assets due to market loss.
2 Subject to a maximum aggregate of $400 million.
RBC Capital Markets, LLC, is a wholly owned subsidiary of, and separate legal entity from, Royal Bank of Canada. Royal Bank of Canada does not guarantee any debts or obligations of RBC Capital Markets, LLC.
RBC Correspondent Services and/or RBC Advisor Services, divisions of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC provides clearing and execution services and/or custody services for accounts managed by your financial advisor. The referenced product or service is available through that relationship.