INVESTOR PROTECTION
As an investor it is important that you be aware of the protection that is available to you at all times from Mader & Shannon Wealth Management, Custodians, Regulators, Insurance Carriers, and Investor Protection Companies.
Mader & Shannon Wealth Management, Inc. is registered with, and regulated by, the Securities and Exchange Commission. One condition of that registration is that the firm maintains certain books and records about the business it conducts and with whom. In addition to required disclosure information given to our clients, more information about our SEC filing can be found on the SEC’s website at http://www.sec.gov/investor/brokers.htm.
The Employee Retirement Income Security Act (ERISA) requires that certain plan fiduciaries be bonded and sets bond amounts. Mader & Shannon Wealth Management carries a Fiduciary Bond through Hartford Insurance Company.
Mader & Shannon Wealth Management utilizes TDAmeritrade to custody client assets. TDAmeritrade is a member of the Securities Investor Protection Corporation, or SIPC (www.sipc.org). SIPC insures investors against brokerage insolvency up to an amount of $500,000 per client, including a maximum of $100,000 for cash claims. Beyond these limits, TDAmeritrade carries additional insurance up to an aggregate of $250 million of additional securities protection, of which $900,000 may be applied to cash. This additional insurance is provided by London Insurers. This coverage is limited to a combined return to any client from a Trustee, SIPC and London of $150 million. The coverage provides protection against insolvency and does not protect against loss in market value of the securities. In addition to the above referenced protection, Mader & Shannon uses a TDAmeritrade Money Market fund that offers Federal Deposit Insurance Coverage (FDIC) coverage. TDAmeritrade’s fund covers up to $500,000.00 for individuals and up to $1 million for joint account holders. Additional information about investor protection, including online tools, can be found at www.finra.com and www.sec.gov.
In addition to the protection listed above there exist certain safeguards with all custodians (TDAmeritrade, etc.). Funds cannot be withdrawn and directed to anyone other than the account holder. Checks can only be mailed to the address of record and only made payable to the account holder. Wires can only be sent to accounts with matching titles (same with ACH). Only authorized individuals may act on behalf of the account holder based on the powers assigned to them. Mader & Shannon Wealth Management, Inc. does not hold client assets and can only initiate withdrawals based on the above criteria. Mader & Shannon Wealth Management serves only to buy and sell securities in the account on a discretionary basis and can only charge fees to the account if previously established by our clients.
