Frequently Asked Questions
No. As a fully introducing broker/dealer to NFS, Commonwealth does not have custody of client funds or securities.
No. Clients receive a preferential distribution of cash and securities equal in value to their pro rata share of all client assets on hand, in which general creditors do not share.
SIPC coverage is limited to $500,000 per customer, including $250,000 for cash.
The limit is $500,000 per person, per account type. For example, if an individual customer had two individual accounts in his name, those accounts would be combined for SIPC purposes and his total SIPC coverage would be $500,000. If a customer and his spouse each had individual accounts, individual IRAs, 401(k) plan accounts, and a joint account, however, each account would be eligible for $500,000 of SIPC coverage.
No. You will receive your pro rata share of the net equity value of your account.
Money market funds are treated as securities and fall within the $500,000 securities maximum.
Yes. To cover this exact possibility, NFS has arranged for additional protection beyond SIPC that covers both cash and covered securities.
Yes. SIPC does not cover commodity futures contracts, fixed annuity contracts, and currency, nor does it cover investment contracts such as limited partnerships.
Historically, customers have received their property and payments within one to three months.