In an independent model, a financial professional, broker-dealer, and clearing and custody firm are all separate entities working together to process an investing client’s financial transactions. These entities are regulated and work together to serve the needs of the investing client while taking advantage of safeguards for physical protection of assets.
Invest with confidence, knowing that multiple entities are working toward protecting your financial assets.
An investment advisor representative (IAR) provides financial guidance to their clients and is generally paid a fee for either managing assets and/or giving investment related advice, and is regulated through a registered investment adviser (RIA).
A registered representative is licensed to sell securities, provides financial guidance to their clients, and may be paid a commission when a financial product is purchased, and is regulated through a broker-dealer.
An RIA processes the fee-based business of IARs licensed with the firm and holds certain responsibilities for regulatory compliance and adherence to securities laws.
A broker-dealer facilitates the buying and selling of securities on behalf of the registered representatives licensed with the firm, and holds certain responsibilities for regulatory compliance and adherence to securities laws.
Firms such as Pershing LLC and Fidelity Institutional® provide the trade execution, clearing, custody, and other services for securities and related transactions.
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 advisor. 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 advisors. Regulators aren’t associated with, and do not endorse Cambridge. You can review the regulatory standing of Cambridge and each associated financial advisor by visiting FINRA’s BrokerCheck.
Client assets are protected by the Securities Investor Protection Act, which is administered by the Securities Investor Protection Corporation (SIPC). SIPC is a non-profit, non-government, membership corporation funded by member broker-dealers. SIPC’s primary role is to return funds and securities to investors if the broker-dealer holding these assets becomes insolvent. Our broker-dealer and its non-affiliated clearing partners are members of SIPC. Securities in your account are protected up to $500,000. For details, see sipc.org.
Pershing LLC, member FINRA, NYSE, SIPC, is a wholly owned subsidiary of The Bank of New York Mellon Corporation (BNY Mellon). Pershing and your financial institution are separate, unaffiliated companies, not responsible for each other’s services or policies.
Fidelity Institutional® and its broker-dealer National Financial Services LLC (together Fidelity®) is an independent company, unaffiliated with Cambridge Investment Group, Inc. Fidelity is a service provider to Cambridge. There is no form of legal partnership, agency affiliation, or similar relationship between your financial advisor and Fidelity, nor is such a relationship created or implied by the information herein. Fidelity has not been involved with the preparation of the content supplied by Cambridge and does not guarantee, or assume any responsibility for, its content.