Some personal investment brokers like Vanguard are "backed" by Lloyds of London:
Assuming a fraudulent loss in a individual brokerage account:
- Will they really replace the entire investment up to $49.5M ?
- What exactly are these terms and conditions (and how easily will they change them) ?
- Who are these "Syndicates" and why is it not just Lloyds ?
- Any examples of how this played out in the past ?
To offer greater protection and security, Vanguard Marketing Corporation has secured additional coverage from Syndicates at Lloyd's of London for our brokerage clients. This additional insurance has the same customer eligibility requirements as SIPC. This coverage has an aggregate limit of $250 million for all claims of securities and cash and incorporates a per client coverage limit of $49.5 million for securities and $1.9 million for cash. This additional policy, provided by the Lloyd's of London Syndicates, is subject to its own terms and conditions. Coverage provided by SIPC and Lloyd's of London Syndicates does not protect against loss of market value of securities.