IB: SIPC protection

P

pcvix

I'd appreciate IB's clarification on the following detail concerning customer account protection.

Since SIPC's protection is limited to up to $100,000 in cash (out of a $500,000 total), would any cash in an IB Securities Account in excess of this amount be covered by IB's additional insurance policy from Lloyd's of London?

For example, an investor thinks a major correction is imminent and liquidates his entire stock portfolio, taking his cash holding to over $100,000, say, $750,000. Would the additional $650,000 cash be covered by the Lloyd's policy?

Thanks.
 
Quote from pcvix:

I'd appreciate IB's clarification on the following detail concerning customer account protection.

Since SIPC's protection is limited to up to $100,000 in cash (out of a $500,000 total), would any cash in an IB Securities Account in excess of this amount be covered by IB's additional insurance policy from Lloyd's of London?

For example, an investor thinks a major correction is imminent and liquidates his entire stock portfolio, taking his cash holding to over $100,000, say, $750,000. Would the additional $650,000 cash be covered by the Lloyd's policy?

Thanks.
More...

first coverage would be IB's capital
second SIPC
third lloyds (yes, to your questions above)
 
I make your pardon.

Do I remember this is very old memory? or it is still there.

It is stranger to me from beginning that IB canada has American investor protection and even have British insurance and nothing to do with CIFP. Now you grow up bigger. You can afford to get CIFP. That is good news to its customers But I canot find information about SIFP from its website.

Could you do me a favor to post a link to show this quite important information. thanks !

To be honest, IB canada is improving aggressively recently. Its customers could expect more better service down the road.
 
Do IB Canada has capital? I dbout about it.
Show me the money.

Do IB Canada has ....
I dont want to go further. that would be ugly.

Do IB Canada has CIPF? Yes. You can find it from CIPF official website. Since when? Sorry I didnt get that. But that is very important credibility. The longer it hold, the more credible it be.
 
Quote from Fighter:

I make your pardon.

Do I remember this is very old memory? or it is still there.

It is stranger to me from beginning that IB canada has American investor protection and even have British insurance and nothing to do with CIFP. Now you grow up bigger. You can afford to get CIFP. That is good news to its customers But I canot find information about SIFP from its website.

Could you do me a favor to post a link to show this quite important information. thanks !

To be honest, IB canada is improving aggressively recently. Its customers could expect more better service down the road.
More...

http://www.interactivebrokers.ca/en/accounts/accountsProtection.php?ib_entity=ca

Securities Account Protection


Interactive Brokers Canada Inc. is a Member of the Canadian Investor Protection Fund (CIPF). As such, your Interactive Brokers Canada account is covered by CIPF for up to $1,000,000 for losses related to securities and cash balances that result only if Interactive Brokers Canada becomes insolvent. CIPF does not cover customers' losses that result from other causes such as changing market values of securities, unsuitable investments or the default of an issuer of securities. Separate accounts of customers are each entitled to the maximum coverage of $1,000,000 unless they are combined with other separate accounts.

In addition to CIPF coverage, customer securities accounts at Interactive Brokers are protected up to $30 million (including up to $1 million for cash). The market value of your stocks, options, warrants, debt, and cash -- denominated in all currencies -- is covered by this insurance. Futures, options on futures, and single stock futures are not covered, but available cash will be swept from your futures account to your securities account periodically so as to take advantage of insurance coverage as much as possible. As with all securities firms, this insurance provides protection against failure of a broker-dealer, not against loss of market value of securities.

This protection is provided by the Securities Investor Protection Corporation (SIPC) and Lloyd’s of London insurers. SIPC provides the first $500,000 per customer (including up to $100,000 for cash). For customers who have received the full SIPC protection, the Lloyd’s policy provides up to an additional $29.5 million (including $900,000 for cash), subject to an aggregate limit of $150 million.

For the purpose of determining a customer account, accounts with like names and titles (e.g. Individual/John Smith and Individual/John Smith) are combined, but accounts with different titles are not (e.g. Individual/John Smith and IRA/John Smith).

SIPC is a non-profit, membership corporation funded by broker-dealers that are members of SIPC. For more information about SIPC and answers to frequently asked questions (such as how SIPC works, what is protected, how to file a claim, etc.), please refer to the following websites:

http://www.SIPC.org

http://www.nasdr.com/sipc_protection.htm

or contact SIPC at:

Securities Investor Protection Corporation
805 15th Street, N.W. - Suite 800
Washington, D.C. 20005-2215
Telephone: (202) 371-8300
Facsimile: (202) 371-6728

Lloyd’s of London is a world leader in the insurance industry.

Click here for FAQs on Securities Account Protection.
 
It depends upon what scenario you're talking about which could seperate you from your money. My strong suggestion would be to spend $1,000 with a securities lawyer to understand the various scenarios which can occur and what your coverage/protection would be in each.

Another idea would be to buy US Treasury bills, and have them held in Custody for you. This means they are physically segregated for you and are not comingled with other customers or brokers securities. In the event of an unfortunate incident occuring, you simply show up with your receipt/documents and are handed your t-bills. You'll get charged some fees, but they should be small.

Or take possession of your T-bills and leave them in a bank safe deposit account.


Quote from pcvix:

I'd appreciate IB's clarification on the following detail concerning customer account protection.

Since SIPC's protection is limited to up to $100,000 in cash (out of a $500,000 total), would any cash in an IB Securities Account in excess of this amount be covered by IB's additional insurance policy from Lloyd's of London?

For example, an investor thinks a major correction is imminent and liquidates his entire stock portfolio, taking his cash holding to over $100,000, say, $750,000. Would the additional $650,000 cash be covered by the Lloyd's policy?

Thanks.
More...
 
Quote from def:

first coverage would be IB's capital
second SIPC
third lloyds (yes, to your questions above)
More...
What is the total policy limit of the Lloyds insurance per IB total accounts or per each account and what is that amount? Thanks
 
Please forgive me to interupt your conversation here.

I am studying CIFP coverage in case of insolvency.

This is the answer from CIFP.

"Mutual funds purchased through a Member firm that are registered in the client's name and not recorded on the firm's records are not eligible for CIPF coverage in the event of the Member firms insolvency."

I think mutual funds above is a kind of physically segregated for you and are not comingled with other customers or brokers securities.

In bankruptcy process, could I think segrated fund in brokerage cannot be frozen?

If it cannot be frozen, what loss CIFP talk about?

Usually, how do investors claim segrated fund registed in your name in the bankruptcy process?

It is quite understood if you hold certificate issued to you. No matter brokerage insolvent or not, you have money in your hand. You just go to mutual fund company to claim your fund.

Am I on the right track? Never go through before. Must be a lot of
junk in my communication. Please help.

Quote from tomcole:

It depends upon what scenario you're talking about which could seperate you from your money. My strong suggestion would be to spend $1,000 with a securities lawyer to understand the various scenarios which can occur and what your coverage/protection would be in each.

Another idea would be to buy US Treasury bills, and have them held in Custody for you. This means they are physically segregated for you and are not comingled with other customers or brokers securities. In the event of an unfortunate incident occuring, you simply show up with your receipt/documents and are handed your t-bills. You'll get charged some fees, but they should be small.

Or take possession of your T-bills and leave them in a bank safe deposit account.
More...
 
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