Account Protection

Each account custodied by Raymond James & Associates is protected for the net equity of the client’s securities and cash positions. Raymond James & Associates is a member of the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $100,000 for claims for cash awaiting reinvestment). An explanatory brochure is available upon request or at sipc.org or by calling 202-371-8300.

Client Interest Program

You can realize the benefits of safety and convenient investment transactions by using our Securities Investor Protection Corporation (SIPC) protected Client Interest Program (CIP) as a short-term depository for your cash, dividends and interest. The automatic sweep feature allows you to purchase and sell investments with little effort:

• If you purchase an investment, the exact amount of the transaction is transferred from your CIP on settlement date and you are free from the responsibility of otherwise delivering the funds.
• If you sell an investment, the proceeds are automatically deposited into your CIP and you begin earning interest on the funds immediately until they are reinvested.

Client Interest Program Benefits

No minimum balance to maintain CIP. However, average balances below $500 do not earn interest, with the exception of the Elite Investment Account.

Protection. Each CIP account is fully insured in event of the firm’s liquidation. SIPC provides coverage for the first $100,000 (an explanatory brochure is available upon request or at sipc.org or by calling 202-371-8300), with the balance covered through Customer Asset Protection Company, a licensed Vermont insurer rated A+ by Standard & Poor’s.

Security. Funds held for CIP are generally used to fund margin loans to clients or placed in short-term U.S. Treasuries, Treasury-backed repurchase agreements, or in qualifying cash escrow and/or money market deposit accounts with top-tier U.S. banks.

Full earning power. Interest is computed on 100% of your average monthly credit balance. However, personal checks deposited in your investment account are not automatically transferred to your CIP until the third business day after deposit.

Check writing and VISA® debit card capabilities when your CIP is used in conjunction with the Raymond James Elite Investment Account.

No early withdrawal penalties.

Effective December 31, excess SIPC coverage will be provided by various syndicates of Lloyd's, a London-based firm with an A+ rating.
Currently, excess SIPC is provided through Customer Asset Protection Company (CAPCO), a licensed Vermont insurer. Effective February 16, 2009, CAPCO will no longer provide this additional coverage to the securities industry. Therefore, Raymond James has purchased excess SIPC coverage from various syndicates of Lloyds, a London-based firm with an A+ rating. This policy will be effective December 31, 2008, and has an aggregate firm limit of $750 million, including a sub-limit of $1.9 million per customer for cash.

For more detailed information about our expanded protection – or any of our client services – please contact us today.