Affiliated Registered Investment Adviser (“RIA”) company
Oakwood Capital, Inc. (“OC”) was formed in 1993 as a full-service Registered Investment Advisory (RIA) firm proving financial planning and fee-based investment management. Committed to helping people pursue their financial goals, Oakwood Capital, Inc. has a long-standing history of high integrity and excellent service.
All our Investment Advisor Representatives (Advisors) are independent contractors offering a wide range of financial products and services to individuals and business owners. Like Oakwood Capital Securities, Inc., OC does not offer proprietary products and services, so all advisors offer independent advice.
Clearing & Custody Partner
Oakwood Capital Securities, Inc., and RBC Custody and Clearing.
RBC Custody & Clearing is one of the world’s largest providers of financial and brokerage services offering comprehensive clearing, custody and execution services to a variety of broker-dealers, such as Oakwood Capital Securities, Inc.
As custodian of your brokerage account, RBC Custody & Clearing, at the direction of Oakwood Capital Securities, Inc., is responsible for:
- The execution, clearance, and settlement of securities transactions
- The preparation and delivery of transaction confirmations and account statements
- The custody (or safekeeping), receipt, and delivery of funds and securities
- The extension of margin credit upon approval
Steps RBC CM (RBC) Takes to Protect Your Assets
In today’s rapidly changing financial markets, you want to entrust your investments to a strong, trusted organization. Our firm has selected RBC Clearing & Custody, a division of RBC Capital Markets, LLC (RBC), to provide transactional support, record keeping, and other services related to maintaining your accounts. RBC CM views the safety and security of the assets in your accounts as a priority equal in importance to the work our firm does to help you build, preserve, enjoy, and share your wealth.
The assets held in an account at RBC have four layers of protection:
- The fiscal stewardship of RBC
- Compliance with Securities and Exchange Commission (SEC) requirements
- Securities Investor Protection Corporation (SIPC) insurance
- An additional insurance policy purchased from Lloyd’s of London
First layer of protection: Fiscal Stewardship
RBC is known for careful, fiscally conscious decision making that benefits our clients and firm as a whole.
One of the world’s leading diversified financial services companies, providing personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services on a global basis.
Royal Bank of Canada— consistently high credit ratings
Second layer of protection: compliance with SEC requirements
Segregation of Assets
Segregation simply means your assets are kept separate from firm assets, and thus are protected from potential losses of the firm.
RBC also fully complies with SEC rules requiring all broker-dealer firms to maintain sufficient net capital to help confirm that you will get your cash and securities back, in the unlikely event that a firm should fail.
Third layer of protection: SIPC insurance
Since RBC is a member of SIPC—a nonprofit corporation funded by member securities broker-dealers—you are eligible for SIPC insurance protection. In the rare event that RBC would become insolvent and by some unlikely sequence there were securities missing from your account, SIPC reserve funds would be available to satisfy your claims against the firm, up to $500,000 per client, including up to $250,000 in cash. All client accounts which are similarly titled are combined for purposes of determining SIPC protection and each separate legal title would be entitled to the full SIPC protection, as long as SIPC does not determine that the accounts are titled that way in order to avoid the SIPC limit.
Shares of money market funds, although often thought of by investors as cash, are, in fact, securities. If you hold such securities in your account, these shares are protected in the same manner as any other covered security and are not included in the $250,000 cash threshold.
For more information about SIPC coverage, please see the SIPC website at www.sipc.org.
Fourth layer of protection: excess SIPC protection
Another way clients’ assets are protected is through an insurance policy purchased by RBC CM from Lloyd’s of London that provides coverage in excess of SIPC.
This additional policy covers up to $99.5 million per SIPC-qualified account (of which $900,000 may be cash), subject to a total maximum aggregate for RBC of $400 million that would be distributed on a pro-rata basis across all losses by clients of RBC.
There has never been a claim paid by an excess SIPC carrier. This is due in part to the segregation rules and the existence of SIPC coverage, which are the first lines of defense in the event of a brokerage firm failure. Excess SIPC insurance is an additional layer of coverage in place for the statistically small chance that SIPC coverage would not be sufficient to settle claims.
The table below illustrates layers three and four: the types of asset protection insurance available, the coverage you can expect to receive, and their total value together.
Investment and insurance products offered through RBC Wealth Management are not insured by the FDIC or any other federal government agency, are not deposits or other obligations of, or guaranteed by, a bank or any bank affiliate, and are subject to investment risks, including possible loss of the principal amount invested.