Garden State Securities, Inc. has taken great precautions to ensure the safety of the assets in which you have entrusted with us. Here is a summary of just some of the protections in place to safeguard your assets:

  1. Our relationship with RBC Capital Markets, LLC. We have chosen RBC Capital Markets, LLC. as the custodian of our clients assets. When you open a brokerage account with Garden State Securities, your funds and securities are held and safeguarded by RBC Capital Markets, LLC. RBC Capital Markets, LLC (RBC CM), is a wholly owned subsidiary of Royal Bank of Canada (RBC) (NYSE and TSX: RY).i Operating since 1869, Royal Bank of Canada has more than $770 billion in assets and one of the highest credit ratings of any financial institution- Moody’s Aa1 and Standard and Poor’s AA-.ii RBC is the sixth largest bank in North America and the 13th largest bank in the world in terms of market capitalization.iii Global Finance Magazine rated RBC the safest bank in Canada (1999-2009) and the safest bank in the Americas (January 2009). In addition, RBC has been named one of the world’s top 100 sustainable companies for its efforts to do business in a responsible manner.iv
  2. RBC Capital Markets, LLC compliance with SEC requirements (Segregation of Assets). In addition to RBC CM’s proven commitment to responsible stewardship, they comply with Securities and Exchange Commission requirements to maintain certain capital requirementsv and to keep client assets separated from their assets and the assets of others.vi Segregation simply means your assets are kept separate from firm assets, and thus are protected from potential losses of the firm. This is a legal requirement for all broker-dealers. In the unlikely event of insolvency your cash and securities are not available to general creditors and are protected against creditors’ claims.
  3. RBC Capital Markets, LLC membership with the Securities Investor Protection Corporation (SIPC). Since RBC Capital Markets, LLC is a member of the Securities Investor Protection Corporation- you are eligible for SIPC insurance protection. The SIPC is the first line of defense in the event a brokerage firm fails. In the event of a catastrophic loss of RBC CM’s firm capital, SIPC reserve funds would be available to satisfy your claims against the firm up to $500,000, including up to $250,000 in cash.vii Since created by Congress forty years ago, the SIPC has advanced over $1.2 billion to make possible the recovery of $108 billion in assets for 763,000 customers. SIPC estimates that no fewer than 99 percent of persons who are eligible have been made whole in the failed brokerage firm cases that it has handled to date.
  4. An additional insurance policy purchased by RBC Capital Markets, LLC from Lloyd’s of London. Beyond SIPC insurance RBC Capital Markets, LLC, has purchased an additional insurance policy from Lloyd’s of London. The policy provides additional securities and cash protection up to $99.5 million per SIPC qualified account (of which $900,000 may be in cash). The firm’s excess SIPC policy is subject to a maximum aggregate amount payable of $400 million.
  5. RBC Capital Markets, LLC, also offers protection if a client’s securities are missing because of theft by an outsider, computer fraud of theft by an employee for personal gain. In such cases, the firm’s CAN$310 million Financial Institution Bond coverage would cover the client’s losses, subject to that policy’s terms, conditions and limits.

    Investment Type SIPC Coverage Excess SIPC Coverage* Total Coverage
    Securities and cash $500,000 (maximum $250,000 cash) $99,500,000 (maximum $900,000 cash) $100,000,000 (maximum of $1,150,000 cash)

    *Subject to a $400,000,000 cap.

We look forward to both earning your trust and establishing a long-term relationship with you and your family. For more information about the strength and stability of RBC, visit the corporate profile and investor relations sections of www.rbc.com.


iRoyal Bank of Canada and RBC Capital Markets, LLC carry separate balance sheets and are responsible for separate debts. Royal Bank of Canada does not guarantee any debt or liabilities of RBC CS.
iiSource: Bloomberg, February 25, 2009.
iiiSource: Bloomberg, October 16, 2009.
ivGlobal 100 list identifying companies that have the best-developed abilities, relative to their industry peers, to manage environmental, social and governance risks and opportunities. The Global 100 list is compiled by the World Economic Forum in Davos, Switzerland. RBC has been named to the list every year from 2004-2008.
vSEC minimum capital requirements are maintained to reimburse clients, should securities be damaged or misplaced.
viSEC securities segregation requirements are maintained so they may be readily identified and returned to you.
viiSIPC does not protect you from a decline in securities value. Among the investments that are ineligible for SIPC protection are commodities futures contracts and currency, as well as investment contracts (such as limited partnerships) and fixed annuity contracts that are not registered with the U.S. Securities and Exchange Commission under the Securities Act of 1933. For more information about SIPC, visit www.sipc.org.