“Excess of SIPC” Coverage

In addition to SIPC protection, National Financial Services LLC provides for brokerage accounts additional "excess of SIPC" coverage from Lloyd’s of London, together with other insurers.1

The excess of SIPC coverage will only be used 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 National Financial Services LLC's excess of SIPC policy is $1 billion. Within National Financial Services LLC's 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 with "Stable Outlook" from ratings firm A.M. Best,2 and an A+ (Strong) rating with "Stable Outlook" from Fitch Ratings3 and "Positive Outlook" from Standard & Poor's.3

1 Fidelity’s “excess of SIPC” insurance is provided by Lloyd’s of London, together with Axis Specialty Europe Ltd. and Munich Reinsurance Co.
2 As of July 2012.
3As of August 2012.
Ratings and outlook are subject to change. For ratings explanations, please go to http://www.lloyds.com/Lloyds_ Market/Ratings/ .