We understand that recent market volatility may cause you to have questions about the protection of your investments. Fidelity is participating in asset protection programs that can assist with safeguarding the security of your investments. Fidelity also offers certain products that are eligible for insurance through the Federal Deposit Insurance Corporation (FDIC).
Fidelity’s brokerage businesses (Fidelity Brokerage Services LLC and National Financial Services LLC (NFS)) are members of the Securities Investor Protection Corporation (SIPC), and brokerage accounts maintained with Fidelity are protected by SIPC, which protects brokerage accounts of each customer when a brokerage firm is closed due to bankruptcy or other financial difficulties and customer assets are missing from accounts. SIPC protects brokerage accounts of each customer up to $500,000 in securities, including a limit of $250,000 on claims for cash. Money market funds held in a brokerage account are considered securities. For more information on SIPC coverage, please review the brochure “How SIPC Protects You” available for free download at www.sipc.org . This page will open in a popup window..
In addition to SIPC protection, Fidelity, through NFS, provides its brokerage customers with additional "excess of SIPC" coverage from Lloyd's of London together with other insurers1. The excess of SIPC coverage would only be used when SIPC coverage is exhausted. Like SIPC, excess of SIPC protection does not cover investment losses in customer accounts due to market fluctuation. It also does not cover other claims for losses incurred while broker-dealers remain in business. Total aggregate excess of SIPC coverage available through Fidelity's excess of SIPC policy is $1 billion. Within Fidelity's excess of SIPC coverage, there is no per account dollar limit on coverage of securities, but there is a per account limit of $1.9 million on coverage of cash awaiting investment. This is the maximum excess of SIPC protection currently available in the brokerage industry.
Both SIPC and Excess of SIPC coverage is limited to securities held in brokerage positions, including mutual funds if held in your brokerage account and securities held in book entry form. Neither SIPC nor the additional coverage protects against loss of market value of the securities.
Note: Certain assets are not eligible for SIPC protection. Among the assets typically not eligible for SIPC protection are commodity futures contracts, precious metals, 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.
Assets in Fidelity's Money Market Funds:
As planned, the U.S. Treasury Department Temporary Guarantee Program for Money Market Funds expired on September 18, 2009. Fidelity's general purpose and tax-exempt money market funds had participated in the program since its inception in September 2008. However, Fidelity's money market funds that invest primarily in U.S. Government and Treasury securities had not participated in the program since April 30, 2009. Under the temporary program, the U.S. Treasury guaranteed the share price of any publicly offered eligible money market mutual fund that applied for and paid a fee to participate in the program. Throughout its duration, the coverage applied only to investments held in participating money market funds as of the close of business on September 19, 2008.
FDIC eligible investments offered through Fidelity:
Deposits to the core position of a Fidelity® Cash Management Account that have been swept to a participating program bank are eligible for FDIC insurance coverage.
Deposits to the core position of certain IRAs and Fidelity Health Savings Accounts with the FDIC-Insured Deposit Sweep core position are eligible for FDIC insurance coverage as well.
Broker CDs, which are issued by an FDIC-insured institution and held in Fidelity brokerage accounts, are also eligible for FDIC insurance.
Assets in Fidelity's Mutual Funds:
If you own Fidelity mutual fund shares directly, not through a brokerage account, your investment is in assets that are property of the funds, not Fidelity. The funds and Fidelity are separate and distinct legal entities. The assets of each Fidelity fund are held by its custodian separate from any other assets belonging to Fidelity or any other fund. Neither Fidelity nor its creditors may access the funds’ assets to satisfy financial obligations of Fidelity.
Assets in your Fidelity Workplace Retirement Accounts including 401(k)s and 403(b)s:
How Fidelity can help
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.