Our Relationship with National Financial Services LLC (NFS)

National Financial Services LLC (NFS) serves as the clearing firm for Commonwealth Financial Network® (Commonwealth). As such, NFS provides trade execution, clearing, custody, and other related services for Commonwealth’s customers’ brokerage accounts. As registered broker/dealers, both Commonwealth and NFS are subject to the rules and regulations of the SEC, FINRA, and any other exchanges either firm is a member of, as well as of the Municipal Securities Rulemaking Board. Each of these regulatory organizations has certain rules and regulations regarding the safeguarding of customer assets, including, but not limited to, keeping accurate books and records, net capital requirements, and the Customer Protection Rule.

These statements equally apply to Commonwealth’s relationship with Pershing LLC, which provides clearing services on a minimal number of customer accounts. The Securities Investor Protection Corporation (SIPC) protects clients against the custodial risk of a member investment firm becoming insolvent by replacing missing securities and cash up to $500,000, including up to $250,000 in cash, per client, in accordance with SIPC rules. Neither coverage protects against losses from any change in the market values of investments. For more information on SIPC coverage, please see the explanatory brochure available at www.sipc.org.