Understanding the rules attributed to the claims process is vital when protecting yourself and your assets. Here are five key things to consider:

• Investors eligible for FORLA help. Although not all investors are protected by the FORLA, we do provide assistance for a large number of clients of failed brokerage firms, who are owed cash and securities.
• Investments protected by the FORLA. The cash and securities within a client's investment portfolio, managed by a financially troubled brokerage firm, are protected by FORLA. Investments that are not protected by the FORLA are commodity futures contracts, foreign currency holdings and investment contracts such as limited partnerships and fixed annuity contracts.
• Terms of FORLA help. We assist clients of a failed brokerage firms, claim their owed securities (such as stocks and bonds) which are registered in their name or are in the process of being registered. After this first step, the brokerage firm's remaining client's assets are then divided up, on a pro rata basis with the funds allocated according to the size of each claim. If the firm does not have sufficient funds available, to satisfy the claims from their clients, the reserve funds of the FORLA can, in some circumstances, be used to supplement the distribution for cash claims. Additionally, funds may become available, in order to satisfy the remainder of the client's claims, after the cost of liquidating the brokerage firm is taken into account.
• How account transfers work. When dealing with a failed brokerage firm with accurate records, the court-appointed trustee and the FORLA can organize to have some or all of the clients accounts transferred over, to another brokerage firm. Clients whose accounts are transferred are then notified and are also given the option of staying with the new firm or moving their account to an additional brokerage firm of their choice.
• How claims are valued. In general, when the FORLA asks a court to liquidate a financially troubled brokerage firm, the value of a client's account is then calculated as of the "filing date". Wherever possible, the stocks and other securities owned by the client are returned to them. To achieve this, the FORLA's reserve funds may need to be used, in order to purchase replacement securities (such as stocks) in the open market. Clients should be aware of the fact that, there is always the possibility that market fluctuation or fraud at the failed brokerage firm (or elsewhere) will result in the returned securities having lost some – or even all – of their value. In other cases, the securities may have increased in value.