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DeFrehn Consulting | RETIREMENT & INCOME MANAGEMENT
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How Your Assets are Protected | Triad Advisors | National Financial Services LLC SIPC | FINRA | MSRB
Guide to How Your Assets Are Protected
DeFrehn Consulting works with several companies and organizations to assure the safety and security of your account. Triad is a full service Broker Dealer and back-office service provider supporting successful independent financial advisors, headquartered in
Triad’s number one priority is the safety and security of your assets.
Neither Triad nor the DeFrehn Consulting takes custody. Brokerage accounts introduced through Triad are held at National Financial Services LLC., a wholly owned subsidiary of Fidelity Investments, Inc.
Securities in accounts at National Financial are insured by SIPC up to $500,000 (including cash and claims limited to $100,000) and have up to $100 million in additional protection. In addition DeFrehn Consulting carries errors and omission insurance and fidelity bonding. None of these coverages protect against a decline in the market value of securities.
The investment advisory services offered by Triad Advisors are structured to be the most competitive, flexible and innovative programs available in the industry. While assets are managed by DeFrehn Consulting and third-party managers, Triad has the proper structures in place to help you reach your goals.
Business Continuity
In the event of a business disruption, NFS has an extensive and sophisticated Business Continuity Plan in place to safeguard your assets and protect vital account information. Duplicate records and backup systems are maintained at its primary data processing facility. Safeguards and redundancies were of primary importance in designing this state-of-the-art data processing complex, which was built to withstand the failure of any system component.
NFS provides trade execution, clearing, and other related services for your account(s). Established in 1983, NFS is an industry leader. It presently services over 14.4 million accounts and custodies over $1.3 trillion in assets.
Regulatory Controls Ensure Your Protection The financial strength of NFS is derived from a system of internal and external controls, cash flow, and strong capital position. Additionally, NFS is subject to the rules and regulations of the SEC, FINRA, NASD, other exchanges of which NFS is a member, and MSRB. These regulatory organizations each have certain rules and regulations that NFS must follow to safeguard your assets. Their rules include; keeping accurate records for your assets and maintaining net capital at required levels. Compliance is strictly enforced by the regulatory agencies and reviewed each year during the annual audit, which is performed by an independent public accounting firm. NFS is also subject to examinations to ensure that their regulations are met.
Customer Asset Protection Company Further Safeguards NFS is required by the SEC to file monthly and quarterly financial and operational reports. The quarterly report contains financial statements, including; statement of financial condition, income statement and statement of changes in stockholder’s equity and regulatory schedules, including a computation of net capital, a reserve formula computation, and other key financial and operational data. NFS cannot use fully paid customer securities for their own business. These securities must be held for your exclusive benefit and are subject to instructions. NFS must account for, and inspect, every physical security owned by an investor at least once every calendar quarter. Any differences must be recorded and corrected within specific time frames. Net customer cash balances not required for customer transactions must be maintained in a cash account segregated for the exclusive benefit of customers.
DeFrehn Consulting, Triad Advisors, and NFS are members of the Securities Investor Protection Corporation, which was created to protect customers of member broker/dealer firms. SIPC coverage protects your assets in the unlikely event that a member broker dealer becomes insolvent. SIPC coverage does not protect against a decline in market value of securities. The SIPC is supported by a $1 billion line of credit with a bank consortium. Borrowing power of up to $1 billion more from the U.S. Treasury through the Securities and Exchange Commission (SEC).
Within certain limits, SIPC protection covers both investor securities held by NFS and cash on deposit. The maximum SIPC protection is $500,000 for covered accounts Your cash balances awaiting reinvestment are protected up to $100,000, which is included in the $500,000. These limits are on a per-customer basis as defined in the Securities Investor Protection Act. Most types of securities held in a brokerage account at NFS are protected, including stocks, bonds, notes, debentures, certificates of deposit (CDs), and mutual funds held with the SIPC member. Learn more at www.sipc.org.
FINRA is the Financial Industry Regulatory Authority. They don’t sell anything. They regulate securities firms and stockbrokers that do. Their job is to protect investors every day by keeping the country’s capital markets fair. As a not-for-profit financial resource, FINRA offers investor information on a full range of topics that may affect your money and investments.
FINRA.ORG offers a wealth of unbiased facts and tools you can really use. Whether you want to get background information on a broker or start planning for retirement, their online educational resources can help. In the investor information section of FINRA.ORG you’ll find investor news and alerts, calculators, real-time market information and more.
The MSRB makes rules regulating dealers who deal in municipal bonds, municipal notes, and other municipal securities. The Municipal Securities Rulemaking Board was established in 1975 by Congress to develop rules regulating securities firms and banks involved in underwriting, trading, and selling municipal securities- bonds and notes issued by states, cities, and counties or their agencies to help finance public projects. The Board, which is composed of members from the municipal securities dealer community and the public, sets standards for all municipal securities dealers. Like the Financial Industry Regulatory Authority, the Board is a self-regulatory organization that is subject to oversight by the Securities and Exchange Commission (SEC).
Notice:Securities Offered through Triad Advisors member FINRA / SIPC.
Always consult an investment professional before making investment decisions.
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