SIPC Account Protection
Betterment Securities is a member of the Securities Investor Protection Corporation (SIPC). Through SIPC funds are available to meet customer claims up to a ceiling of $500,000, including a maximum of $250,000 for cash claims. SIPC insurance does not protect against loss in the market value of securities. For additional information regarding SIPC coverage, including a brochure, please contact SIPC at (202) 371-8300 or visit www.sipc.org.
Investor Education and Protection
An investor brochure about Betterment Securities is available on FINRA BrokerCheck at brokercheck.finra.org. You can also call the BrokerCheck hotline at (800) 289-9999 or access the broader FINRA website at www.finra.org.
Transfer Sweep Program
The Transfer Sweep Banks (referenced in the Brokerage Agreement) are currently as follows: The Bancorp, Inc., Wells Fargo Bank, N.A.
Disclosure of Transactions for Betterment’s Account
Betterment regularly trades for its own account in the same securities as we advise our clients on. Betterment’s securities positions are typically small. Our trading activity is necessary to round out transactions to the exact amounts Clients want to deposit, withdraw, or allocate. Betterment’s trading is conducted with other market participants, and we do not buy or sell with Betterment clients, although orders for our principal account are generally aggregated with our clients’ orders. The prices Betterment LLC receives for our trades are exactly the same as the prices every other client receives.
Disclosure of Order Execution and Routing Practices (SEC Rule 606)
Betterment Securities hereby serves notice that it relies exclusively upon Apex Clearing Corporation, Inc. (“Apex”) for order routing. Pursuant to Rule 606, Apex is required to make publicly available a quarterly report with regard to routing its non-directed orders. Apex does not pay Betterment Securities or any of its affiliates for order flow payments and rebates received by Apex on Betterment Securities’s orders.
Please click here to view the most recent quarterly report for Apex.
Business Continuity Statements
SEC and FINRA Rules require investment advisers and broker-dealers to create and maintain a business continuity plan.In accordance with these rules Betterment LLC and Betterment Securities have both developed a plan that is intended to permit us to continue critical business operations during natural disasters, power outages, or other significant events. While there can be no assurance that service will continue without interruption in all circumstances, the plans do address actions that the firms intend to take in the event that there is a significant disruption. Account access is planned to be restored as the first step, which would be followed by other critical business operations. If there is a local disruption to the operating facilities of either firm, the respective business continuity plans call for the affected firm to establish operations at an alternate location. We maintain data backup records, located well away from our primary facility so that they would not be affected by a regional disruption. We intend for account access to be available through these records should the primary data center suffer a disruption. Our plan will be reviewed, updated, and tested periodically.