Consumer Protection

Your Securities Account has four types of protection against physical loss or misplacement.

  • SWS Securities $15 million blanket bond insures our customers against individual acts of fraud.
  • Our customers are protected by SWS Securities’ Capital Strength. Historically, the firm has always maintained greater capital than required by any regulatory authority.
  • The Securities Investor Protection Corporation (SIPC) provides primary coverage against physical loss following a liquidation. SIPC provides up to $500,000 to protect the assets in each account, which includes up to $100,000 for cash balances.
  • With an Excess Securities Bond, your aggregate protection is $24.5 million per customer(as defined by SIPC) above SIPC, for a total of $25 million.

It is important to note that the account protection offered by SIPC and the private insurer does not protect against losses due to market fluctuations.

The coverage provided by SIPC is fully described in the booklet “How SIPC Protects You”, which is available upon request from Wyse Securities. SWS Securities supplements the SIPC coverage with a bond from a major insurance company. The excess securities bond adds additional protection, up to $24.5 million per account, from loss in the event of a liquidation proceeding as governed by Federal law.

Key Provisions

The following presents a simplified summary of the most important provisions of the Excess Securities Bond. It does not contain the legal documents that actually govern coverage. The full bond, terms, conditions and limitations always govern. This summary does not alter the terms of the Excess Securities Bond in any way and cannot be use to support a claim in the event of a loss.

There are several important conditions to the Excess Securities Bond. In general, these provisions are:

  • The bond is subject to and shall follow all terms, definitions , conditions and limitations of the Securities Investor Protection Act of 1970 as amended.
  • The bond covers only customer claims for loss of securities which would have been recoverable by the customer from the Securities Investor Protection Corporation. Coverage is only for claims in excess of SIPC’s limit
  • When SIPC files application for a protective court decree in accordance with the Securities Investor Protection Act, the filing date shall be the date of discovery for loss of securities sustained at anytime prior to that date.
  • The bond became effective on May 20, 1998 at 12:01 AM., and is renewable annually.