Morgan Stanley serves many of the world’s most sophisticated and demanding institutional and individual investors. Our global presence and expertise allow us to provide our clients with financial advice, integrated solutions and intelligence across all the world’s major markets.
Our valued wealth management clients have entrusted a total of more than $1.8 trillion in assets with Morgan Stanley as of September 30, 2013, making us one of the world’s leading wealth management firms. As we strive for excellence in advising clients and helping them manage their wealth, no responsibility is more important to us than making certain our clients’ assets are safe, secure and available when needed.
Morgan Stanley Smith Barney LLC is a member of SIPC, a federally mandated US nonprofit corporation that protects customer assets from financial loss in the event a broker-dealer becomes insolvent.
SIPC automatically covers securities custodied with Morgan Stanley Smith Barney LLC (stocks, bonds, notes) up to $500,000 per client capacity (e.g., individual, joint) of which $250,000 may be cash. This means that in the unlikely event of liquidation, a court-appointed trustee of a SIPC member firm and SIPC representative will examine the records of the member firm to verify that all of the securities are accounted for. If sufficient funds are not available in the firm’s customer accounts to satisfy claims within the above limits, the reserve funds of SIPC are used to supplement the distribution, up to the ceiling of $500,000 per customer, including up to $250,000 for cash claims.
Money market funds receive SIPC coverage as securities, not as cash. Funds in the Bank Deposit Program are covered by FDIC insurance, not SIPC.
Additional information about SIPC is available at http://www.sipc.org/.
Morgan Stanley Smith Barney LLC also has obtained private insurance in excess of SIPC coverage, which provides an additional $1 billion coverage on an aggregate basis to cover shortfalls if basic SIPC coverage is insufficient as a result of breach of securities rules or physical loss or damage to customer assets. This coverage is subject to a firm wide cap of $1 billion with no per-client limit for securities and a $1.9 million per-client limit for the cash portion of any remaining shortfall.
Federal Deposit Insurance Company (FDIC) Coverage
The FDIC is an independent agency of the US government created by Congress to maintain stability and public confidence in the nation’s financial system by, among other things, insuring deposits.
FDIC deposit insurance protects clients against the failure of each depository institution that participates in Morgan Stanley Smith Barney LLC’s Bank Deposit Program.
Deposits in the Bank Deposit Program are FDIC insured up to a total of $250,000 per bank for each insurable capacity in which funds are held (individual, joint, etc.).
Additional information about the FDIC is available at http://www.fdic.gov/.
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