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Account Protection

Customer securities

Customer securities—such as stocks and bonds that are fully paid for or excess margin securities—are segregated from broker-dealer securities in compliance with the SEC's Customer Protection Rule. This is a legal requirement for all broker-dealers. In the unlikely event of insolvency of a broker-dealer, these segregated assets are not available to general creditors and are protected against creditors' claims. There are reporting and auditing requirements in place by government regulators to help ensure all broker-dealers comply with this rule. Your securities in your client account are held on a fully disclosed and segregated basis, domiciled and maintained in the US with our affiliate Charles Schwab & Co., Inc. Charles Schwab & Co., Inc., being a licensed broker-dealer in US, is required to comply with the abovementioned US rules.

SIPC® Account Protection

Charles Schwab & Co., Inc., a member of the Securities Investor Protection Corporation (SIPC), will serve as the custodian for your securities account. In the event that the SIPC-member custodian fails and is placed in liquidation under the Securities Investor Protection Act, SIPC protects the securities customers of its members up to $500,000 (including $250,000 for claims for cash). For details, please see

Additional Protection Through Lloyd's of London and Other London Insurers

Additional brokerage insurance is provided to Schwab accounts through underwriters in London. Schwab's coverage with Lloyd's of London and other London insurers, combined with SIPC coverage, provides protection of securities and cash up to an aggregate of US$600 million, and is limited to a combined return to any customer from a Trustee, SIPC, and London insurers of US$150 million, including cash of up to US$1,150,000. This additional protection becomes available in the event that SIPC limits are exhausted.