Brokerage Business Model.
Strength & Stability
Established in 1983, National Financial Services LLC (NFS), a Fidelity Investments® company, is one of the largest providers of brokerage services. Fidelity Investments® is one of the world’s largest providers of financial services, with $5.0 trillion in assets under administration, including managed assets of $2.0 trillion as of January 31, 2015. The firm is one of the largest mutual fund companies in the United States, and a leading provider of workplace retirement savings plans.
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 be used only 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 NFS’ 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 (Excellent) rating with “Very Strong” from Fitch Ratings3 and A+ “Strong” from Standard & Poor’s.4
On Demand Access
Through NFS’ Streetscape® platform, our advisors have personalized, one stop access to investment services from their computer, wireless device, or telephone. Streetscape® enables you to service your clients’ brokerage accounts virtually whenever and wherever you go.
Why We Chose NFS: Our Committment to Service
NFS has committed to provide the best possible clearing experience — which was another key factor in our decision to utilize them for our advisors and their clients. NFS’s commitment to staffing dedicated professionals, providing efficient technology, and focusing on continuous improvement perfectly aligns with our service promise and our commitment to ensure our advisors and their clients experience the diamond standard.
1 Fidelity’s excess of SIPC insurance is provided by Lloyd’s of London, together with Axis Specialty Europe Ltd & Munich Reinsurance Co.
2 As of July 2012.
3 As of June 2014.
4 As of August 2012.
Ratings and outlook are subject to change. For ratings explanations, please go to http://www.lloyds.com/Lloyds_Market/Ratings/.