How do Spinnaker and LPL Financial secure my information?
To protect your information and assets, LPL Financial employs physical, technical, and procedural security controls at all of our facilities. We actively monitor and enforce compliance to our security policy and its related procedures. We regularly review, update, and modify our policies and procedures to respond to new threats and to adapt to changes in technology.
How can I protect my own information?
Protect your social security number – provide this number only when absolutely necessary, and do not carry your social security number with you.
Treat your trash and mail carefully. To thwart an identity thief who may pick through your trash or recycling bins to capture your personal information, always shred your charge receipts, copies of credit applications, insurance forms, physician statements, checks, bank statements, expired charge cards that you’re discarding and credit offers in the mail.
What does it mean to work with an LPL Financial Advisor in an Advisory Relationship?
LPL Financial is an investment advisor registered with the Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940. As an investment advisor, LPL Financial is a fiduciary to its advisory clients and, as such, is obligated to act solely in the best interests of clients and make full and fair disclosure of all material conflicts of interest.
Under its investment advisory programs and mutual fund asset-allocation programs, LPL Financial and its financial advisors provide ongoing investment advice and monitoring of client portfolios. These services may be on a discretionary basis, which means that you do not need to direct your financial advisor to make trades, rebalance your portfolio or make other investment decisions for your account. For such services, clients pay LPL Financial an “all-in” fee for investment management, brokerage, custody and administrative services. The fee, which is negotiated between the LPL Financial advisor and client, is typically a percentage fee based on the value of the assets in the account. These ongoing services and fees are set out in the Investment Advisory Agreement between LPL Financial and the client, which can be terminated at any time by the client.
As an alternative, or in addition to ongoing investment advice in an advisory program, clients may engage with an LPL Financial advisor for financial planning services. The client pays a flat fee or hourly fee for this type of service, which is not ongoing.
As noted above, when LPL Financial acts as an investment advisor, it is required to disclose all material conflicts of interest between LPL Financial and its advisory clients. LPL Financial delivers to its advisory clients at the time of engagement a Form ADV disclosure brochure that contains important information about LPL Financial and the LPL Financial advisor, the advisory services to be provided, the fees to be paid for such services, and material conflicts of interest. Such disclosure brochures may be obtained by: CLICK HERE (ADV form Part II brochure for each of us)
What does it mean to work with an LPL Financial Advisor in a Brokerage Relationship?
LPL Financial is also a broker/dealer registered with the SEC and a member of the Financial Industry Regulatory Authority (FINRA). In a brokerage relationship, clients typically pay a commission to LPL Financial on each transaction in the account. The amount of the commission in a brokerage relationship varies depending on the security or investment product selected by the client.
What does Securities Investor Protection Corporation (SIPC) protect?
The LPL Financial SIPC Membership provides account protection up to a maximum of $500,000 per customer, of which $250,000 may be claims for cash. An explanatory brochure is available at www.sipc.org. Additionally, through London Insurers, LPL Financial accounts have additional securities protection to cover the net equity of customer accounts up to an overall aggregate firm limit of $575,000,000 subject to conditions and limitations. The account protection applies when an SIPC member firm fails financially and is unable to meet obligations to securities clients, but it does not protect against losses from the rise and fall in the market value of investments.
How is my cash protected?
SIPC protects cash in a brokerage firm account from the sale of or for the purchase of securities. Cash held in connection with a commodities trade is not protected by SIPC. Money market mutual funds, often thought of as cash, are protected as securities by SIPC. SIPC protects cash held by the broker for customers in connection with the customers’ purchase or sale of securities whether the cash is in US Dollars or denominated in non-US dollar currency.