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BIRKELBACH MEMBER FINRA/ S.I.P.C. |
Dear Valued Client:
In response to elevated pressures on financial markets over the past few months and the volume of calls we have received from many of our clients, we want to assure you that the safety and security of your assets are of paramount importance to Birkelbach Investment Securities.
The assets in your account are protected in a number of important ways, both
by us, your financial organization and our clearing agent, Pershing LLC, a subsidiary
of
The Bank of New York Mellon Corporation. Like to Birkelbach Investment Securities,
The Bank of New York Mellon Corporation is one of the most respected financial
organizations in the world.
As your financial organization, Birkelbach Investment Securities provides you with a brokerage account, advises you regarding your investments, and accepts your orders to buy and sell securities, while Pershing executes transactions our firm sends to them on your behalf and holds your assets in custody, or safekeeping, on our behalf.
This type of clearing relationship is typical throughout the industry and extremely advantageous to you. By allowing a clearing agent to settle trades and custody assets, Birkelbach Investment Securities can devote its focus and capital into helping you achieve your investment goals. Pershing, like other clearing agents additionally has a number of safeguards in place to protect your assets, so our relationship with Pershing serves as added security for you.
The financial strength of Birkelbach Investment Securities and Pershing provides the first, and perhaps most important, measure of protection for your assets. Your brokerage accounts assets are protected, regardless of any negative impact current conditions have on either of our firms.
Birkelbach Investment Securities and Pershing are each registered broker-dealers with the Securities Exchange Commission (SEC) and members of the Financial Industry Regulatory Authority (FINRA). Both the SEC and FINRA require us to comply with various rules intended to minimize the chance of financial failure and maximize the protection of your assets.
One of those rules, the SEC Customer Protection Rule, requires to segregate investor assets, which means that even if Pershing fails, your assets will be separate from Pershing’s own assets and safe. Birkelbach Investment Securities and Pershing are also subject to the SEC Net Capital Rule, which requires each of us to maintain enough liquid assets, net of any liabilities, to assure the return of your assets in the event of firm failure and liquidation. Because Pershing has custody of your assets, it must maintain an even higher level of net capital than Birkelbach Investment Securities, which further increases the security of your assets.
Birkelbach Investment Securities and Pershing are also members of the Securities Investor Protection Corporation (SIPC), a non-profit organization that provides coverage to investors if their brokerage firm becomes insolvent. It covers the replacement of missing securities and cash up to $500,000, with a limit of $100,000 for cash. We also provide additional coverage in excess of SIPC limits through account protection that Pershing has purchased from Lloyd’s of London, one of the World’s best known insurance brands. This coverage will protect your assets up to an overall aggregate level of $1 billion for assets in custody at Pershing and its London affiliate, Pershing Securities Limited, including up to 1.9 million in cash awaiting reinvestment in your individual account. This provides the highest level of protection available in the industry today.
Overall, we wanted to reach out to you during this challenging time to assure you that both Birkelbach Investment Securities and Pershing are financially strong and in compliance with safeguards required by the SEC, FINRA, and SIPC to protect your assets.
For more detail on the protection and security of assets held in your account with Birkelbach Investment Securities, you may visit SIPC’s website at www.sipc.org. You may also visit the Lloyd’s of London website at www.lloyds.com.
If you have any questions, please do not hesitate to contact your Birkelbach Investment Securities professional.
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