Safety of Assets

For true independence, a financial professional, investment firm, and clearing and custody firm are all separate entities working together to serve your investing needs.

Quality Firms Safeguarding Your Assets

 

Clearing firms: 

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.

 

Securities regulations:

Are designed to protect clients’ funds and fully paid for securities when they are in custody at a registered broker-dealer. 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 minimize the chance of financial failure and maximize the protection of your assets. The SEC also requires a registered broker-dealer to segregate fully paid for, investor owned assets – meaning that if the broker-dealer fails an investors’ assets will remain safe, separate from the broker-dealer’s assets.

 

Connecting You to Your Investments

 

Investing Client

Invest with confidence, knowing that multiple entities are working toward protecting your financial assets.

Financial Professional

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.

Investment Firm

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.

 

Custodian and Clearing Firms

Pershing LLC, Fidelity Clearing & Custody Solutions, and select firms provide the trade execution, clearing, custody, and other services for securities and related transactions.

Your Investments

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.

Regulators

The Securities Exchange Commission (SEC) is responsible for ensuring fairness for the individual investor and oversees Financial Industry Regulatory Authority (FINRA), which in turn oversees broker-dealers, custody and clearing firms, and your financial professional.

 


 

Pershing LLC 

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.