Customer Asset Protection Company (CAPCO) was formed in late 2003 by 14 securities investment firms seeking to provide net equity excess account protection over the protection limits currently provided by the Securities Investor Protection Company ("SIPC") in the United States and the Financial Services Authority ("FSA") in the United Kingdom.

The excess protection (sometimes referred to as "Excess SIPC") is provided to the securities affiliates of the 12 participants in the form of bonding coverage. This protection would be triggered only in the event of the financial failure and liquidation of a participating securities affiliate and does not cover investment losses in customer accounts due to market fluctuation or other claims for losses while these securities affiliates remain in business. The protection is also not triggered unless the customer's account exceeds the limits of account protection provided by SIPC or the FSA. Other restrictions apply as contained in the applicable bond.