An independent broker-dealer can choose a non-affiliated clearing firm to provide the trade execution, clearing, custody, and other related services for clients of their financial professionals. A clearing firm may also be a registered broker-dealer. Clearing relationships are typical throughout the industry and allow your financial professional to focus on helping you achieve your investment goals while taking advantage of the clearing firm’s safeguards for the physical protection of your assets.
The Securities Exchange Commission (SEC) is an agency of the U.S. government that oversees the Financial Industry Regulatory Authority (FINRA), which in turn oversees broker-dealers, clearing firms, and your financial professional. Both the SEC and FINRA require members to comply with various rules intended to regulate and oversee the operation of financial markets and the sales practices of financial professionals. Regulators aren’t associated with, and do not endorse Cambridge. You can review the regulatory standing of Cambridge and each associated financial professional by visiting FINRA’s BrokerCheck here.
Invest with confidence, knowing that multiple entities are working toward protecting your financial assets.
A registered representative provides financial guidance to their clients and is typically paid a commission when you purchase a financial product.
An Investment Advisor Representative (IAR) provides financial guidance to their clients and is generally paid a fee for either managing assets, giving advice, or both.
A broker-dealer processes the commission business of registered representatives licensed with the firm and holds responsibility for regulatory compliance and adherence to securities laws.
A Registered Investment Adviser (RIA) processes the fee-based business of IARs licensed with the firm and holds responsibility for regulatory compliance and adherence to securities law.
Pershing LLC, Fidelity Clearing & Custody Solutions, and select firms provide the trade execution, clearing, custody, and other services for securities and related transactions.
Mutual funds, managed accounts, stocks, bonds, etc.
In an independent model, the financial professional, investment firm, and custodian are all separate entities that work together to process a client’s financial transaction.
The Securities Exchange Commission (SEC) is responsible for oversight of the Financial Industry Regulatory Authority (FINRA), which in turn oversees broker-dealers, custody and clearing firms, and your financial professional. Regulators aren’t associated with, and do not endorse Cambridge.
Fidelity Clearing & Custody Solutions® and its broker-dealer National Financial Services LLC
Fidelity Investments is an independent company, unaffiliated with Cambridge Investment Research, Inc. (Cambridge). Fidelity Investments is a service provider to Cambridge.
There is no form of legal partnership, agency affiliation, or similar relationship between your financial advisor and Fidelity Investments, nor is such a relationship created or implied by the information herein. Fidelity Investments has not been involved with the preparation of the content supplied by Cambridge and does not guarantee, or assume any responsibility for, its content.
Fidelity Investments is a registered trademark of FMR LLC.