Through every market condition, through every stage of your life—and your family’s life—Janney provides stability and coverage for the safety and security of your assets.
In addition to protection from Janney’s strict compliance with the Securities and Exchange Commission’s (SEC) customer protection rules, the assets in your account are protected through the following programs.
Assets in your brokerage account are protected through Janney’s membership in the nonprofit Securities Investor Protection Corporation (SIPC).
In the highly unlikely event that our firm should ever fail and should your assets not be recovered through the firm, the SIPC will step in to ensure delivery of up to $500,000 of coverage (not more than $250,000 in cash) to each eligible account.
Excess SIPC Insurance
As a Janney client, you receive additional insurance supplementing SIPC coverage through certain underwriters at Lloyd’s of London. This excess insurance is provided to you at Janney’s expense.
Should your assets not be recovered through the firm or under SIPC protection limits, this additional insurance will cover your account subject to a limit of $24.5 million per client and an aggregate loss limit of $100 million. If you maintain more than one account at Janney in separate capacities (i.e., individually, jointly, as a trustee), each account would be protected by SIPC and the excess insurance.
SIPC has a brochure further explaining the coverage provided. To obtain a copy, please contact your Janney Financial Advisor.
Janney FDIC Insured Sweep
In Janney FDIC Insured Sweep, cash in your Janney account is “swept into” an FDIC insurance interest-bearing account at one or more participating banks (each a “Program Bank”).
FDIC Coverage FDIC insurance covers both the principal and accrued interest in a bank account, up to $250,000 per depositor, for each ownership category in any Program Bank where money is deposited in the event that the bank fails. If you use a single
bank to deposit your cash balances, you are limited to that one bank’s FDIC insurance coverage only.
In Janney’s FDIC Insured Sweep, funds are allowed to be deposited into a number of different banks, allowing for insurance coverage of up to $2,500,000 for an individual account; $5,000,000 for joint accounts; and $2,500,000 for retirement and corporate accounts. Your deposited cash balances will be allocated nightly to one or more banks. The number of banks to which balances are allocated will be determined by your total balances and Program Bank capacity.
Allocation of Funds to Program Banks
Your Janney monthly client account statement will list the banks your balances were allocated to during the previous month. The list of Program Banks will differ based on account type. A complete list of the banks utilized in the Janney FDIC Insured Sweep
Program is located on our website at Janney.com/cash.
Janney will deposit available cash balances from your account(s) into each of the Program Banks, beginning with an allocation of up to $246,500 (or up to $493,000 for joint accounts) to the first bank and then to additional banks, as warranted, based on the value of the account.
It is possible to exceed the FDIC insurance limits at a specific bank if you also hold deposits directly with the same bank or with another brokerage firm outside of the Janney FDIC Insured Sweep Program. You can avoid this by periodically reviewing the list of Program Banks. You may opt out of a Program Bank at any time by contacting your Financial Advisor.
Janney's Enduring Strength and Stability
Janney’s almost 200-year history of helping clients achieve their financial goals shows the enduring success of our stability and approach. Here’s why you can count on us:
- Janney has operated for nearly 40 years as an independent subsidiary of The Penn Mutual Life Insurance Company, and is fully backed by Penn Mutual’s credit ratings, including A+ Superior from A.M. Best, Aa3 Excellent from Moody’s Investors Services, and A+ Strong from Standard & Poor’s.
- We’ve reported consistent, positive earnings in every market condition and have not experienced a loss throughout the Firm’s recorded history, including the 2008 financial crisis.
- Our private ownership enhances our focus on clients, and we provide no incentive for offering clients proprietary investment products—keeping your best interest front and center.
- Our capital strength, and the ability to tap Penn Mutual’s capital surplus, allows for continual investment in state-of-the-art capabilities and services.
If you have other deposits at the Program Banks outside of the Janney FDIC Insured Cash Sweep, you must aggregate all such deposits with your Bank Deposit Sweep Program balance for purposes of determining FDIC coverage. If your total funds on deposit at any Program Bank exceed the applicable FDIC insurance limit, the FDIC will not insure your funds in excess of the limit. You are responsible for monitoring the total amount of all deposits held by you or for you with these banks for purposes of determining the amounts eligible for coverage by FDIC insurance.