Investor Rights

Securities Investor Protection Corporation coverage generally protects customers of a failed brokerage against the loss of cash and securities held in custody, up to statutory limits. It is not insurance against market losses — if an investment declines in value, that decline is not covered.

A fiduciary standard generally requires a professional to act in a client's best interest. Other relationships may instead operate under a suitability standard, which is a different and generally lower bar. Understanding which standard applies to a given professional relationship is a meaningful part of investor protection.

Verifying that a firm and individual are properly registered, understanding how assets are custodied, and reviewing account statements regularly are all practical steps toward account safety that do not require specialized legal knowledge.

Common warning signs include promises of guaranteed or unusually high returns, pressure to act immediately, unregistered products, and reluctance to provide clear written documentation. Legitimate opportunities can typically withstand time, questions, and independent verification.

Keeping copies of account agreements, trade confirmations, statements, and correspondence creates a record that is useful both for personal tracking and, if ever needed, for raising a dispute with a firm or regulator.