Our Privacy Policy and How SIPC Protects Investors

Privacy Policy

At Janney Montgomery Scott LLC (Janney), the confidentiality of our customers' nonpublic personal information is of utmost importance, and Janney maintains high standards to safeguard such information. Janney collects and maintains nonpublic personal information in the course of our normal business operations. 

Accordingly, Janney has established measures and procedures to assure that this nonpublic personal information is used for Janney business purposes only. We restrict access to nonpublic information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal standards to guard your nonpublic personal information. Janney employees who have access to this information are required to comply with Janney's policies to keep the information confidential. 

Janney collects nonpublic personal information about you from the following sources:

• Information we receive from you on applications or other forms
• Information about your transactions with us, our affiliates, or others
• Information we receive from a consumer reporting agency

Janney maintains the confidentiality of customer information and we do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law.

Account Protection at Janney Montgomery Scott LLC
As a valued client of Janney Montgomery Scott LLC (“Janney”), the assets in your account are protected in several ways.  You have protection from Janney’s strict compliance with the Securities and Exchange Commission (“SEC”) customer protection rules.  You also have account protection resulting from Janney’s membership in the Securities Investor Protection Corporation (“SIPC”).  As a client of Janney, you also receive additional insurance supplementing SIPC coverage, which is provided to you at Janney’s expense.

SEC Customer Protection Rule
The customer protection rule (SEC rule 15c3-3) requires that broker/ dealers segregate all fully paid customer securities from those securities used in our day-to-day business.  Additionally, nearly all of our customers’ physical certificates are held in industry-owned central depositories under the control of an independent entity, the Depository Trust Company.  Rule 15c3-3 also requires that we deposit cash or qualified government securities in a separate bank account restricted for the exclusive benefit of customers in an amount sufficient to cover customer account net cash balances.

SIPC Protection
SIPC is a nonprofit membership corporation formed by the U.S. Congress in 1970 to provide certain financial protection to clients of member securities firms.  SIPC protection would ensure delivery of the portfolio assets to each eligible account up to $500,000 in value (not more than $100,000 in cash) in the case of financial failure of a SIPC member firm.  SIPC has published a brochure further explaining the coverage provided.  If you would like a copy, please contact your Janney Financial Consultant.

Excess Account Protection
Excess insurance coverage for your account will be obtained through certain underwriters at Lloyd’s of London. In the highly unlikely event that our firm should ever fail and should your client assets not be recovered through the firm or under SIPC protection limits, this additional insurance becomes available to 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 of SIPC coverage. Lloyd’s of London is the world’s leading insurance market. Lloyd’s is currently rated A and A- by Standard & Poor’s and A.M. Best respectively.

Contacting SIPC
You may obtain more information about SIPC, including the SIPC brochure regarding investor protection, by visiting SIPC's website, www.sipc.org, or by calling SIPC at 202.371.8300.  You may also contact your Janney Financial Consultant to request a copy of the SIPC brochure regarding investor protection.