SIPC Account Protection

Penson Financial Services, Inc. is a member of the Securities Investor Protection Corporation (SIPC), which provides customers with insurance protection for amounts up to $500,000 each, with a limitation of $100,000 on claims for cash balances when brokerages fail owing customers cash and securities (stocks and bonds). For important information regarding SIPC and full details of the coverage, eligibility, and other specific information, please visit www.sipc.org

Penson Financial Services, Inc. has also acquired “Excess SIPC” insurance from a third party insurer to protect client accounts up to their net equity for loss of securities and cash held at Penson Financial Service, Inc., up to an overall firm aggregate of US $200,000,000 for all customer accounts. This “Excess SIPC” protection is in addition to the protection provided by the Securities and Investors Protection Act, which is administered by SIPC, and is subject to certain conditions and limitations, details of which are available upon request. The above coverage does not protect against loss of the market value of securities.

Note: SIPC and Excess SIPC provide coverage against loss of securities and cash, not against market depreciation, fluctuation in a market value of your securities or a trading loss.