McDermott Investment Advisors, LLC (MIA) is an SEC Registered Investment Advisory with Headquarters located at 5237 Summerlin Commons Blvd. Suite 223 Fort Myers, FL 33907. Operations Mailing Address PO Box 1889, Bethlehem, PA 18018.
McDermott Investment Services, LLC (MIS) is a Registered Broker/Dealer member FINRA/SIPC/MSRB with Headquarters located at 26West Broad Street, Bethlehem, PA 18018. Operations Mailing Address PO Box 1889, Bethlehem, PA 18018
Securities Custody and Clearing is accommodated by RBC Correspondent Services, A Registered Clearing Broker/Dealer.
What/Who is RBC CS?
RBC Correspondent Services(RBC CS) is a division of RBC Capital Markets, LLC, member NYSE/FINRA/SIPC. RBC Capital Markets, LLC, is a member of the NYSE, AMEX, CHX, CBOE and PSE and has execution capabilities on all principal exchanges. RBC Capital Markets, LLC is owned by Royal Bank of Canada, which trades under the symbol RY on the New York Stock Exchange.
Firm’s Relationship with RBC CS
MIA/MIS has a contractual agreement with RBC Correspondent Services (RBC CS) to serve as our clearing firm. This fully disclosed agreement states the responsibilities of each party. Prior to the agreement becoming effective, RBC CS is responsible for making all disclosures to our firm’s designated examining authority as required by NYSE Rule 382. Each client of our firm is notified of the relationship via a disclosure letter. The disclosure letter details the responsibilities that our firm (the introducing broker-dealer) and RBC CS (the clearing firm) have to the client. Although client assets are held by RBC Capital Markets, LLC, neither RBC Capital Markets, LLC, nor RBC CS has responsibility for the financial condition or performance of our firm or our Financial Advisors.
SIPC & Additional Coverage for Client Accounts
Our clearing firm, RBC Correspondent Services, is a division of RBC Capital Markets, LLC. RBC Capital Markets, LLC, is a member of the Securities Investor Protection Corporation (SIPC). SIPC is a nonprofit membership corporation funded by its member security broker-dealers. SIPC protects the securities clients of its members in the event of the failure of a member firm. SIPC reimburses clients the cash value of their securities up to $500,000 per client. Any cash in a client’s account would be reimbursed by SIPC up to $250,000 (reducing the $500,000 above).
RBC Capital Markets, LLC, has purchased an additional policy that offers coverage in excess of the protection provided by SIPC. This coverage covers additional securities and cash protection up to $99.5 million per client, of which $900,000 may be in cash. A $400 million aggregate limit applies to this additional coverage.
RBC Capital Markets, LLC, also offers protection if a client’s securities are missing because of theft by an outsider, computer fraud or theft by an employee for personal gain. In such cases, the firm’s CAN$310 million Financial Institution Bond coverage would cover the client’s losses, subject to that policy’s terms, conditions and limits.
Note: Neither SIPC protection, nor protection in excess of that offered by SIPC, covers a decline in the value of a client’s assets due to market loss. Additional information is available upon request or at www.sipc.org.
Appendix 1: Business Continuity Planning – Disclosure
McDermott Investment Services, LLC has developed a Business Continuity Plan on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information on our business continuity plan.
Contacting Us – If after a significant business disruption you cannot contact us at our main office [either via telephone at: (610)882-1460 or via email at dmcdermott@mcdermottadvisors.com], you should call our alternative number (386) 437-0072 or go to our website at www.mcdermottadvisors.com. If you cannot access us through either of those means, please contact our clearing firm, RBC Capital Markets at (612) 607-8239 for instructions on how they may facilitate trades, transfer securities or distribute funds for your accounts.
Our Business Continuity Plan – We plan to quickly recover and resume business operations after a significant business disruption and respond by safeguarding our employees and property, making a financial and operational assessment, protecting the firm’s books and records, and allowing our customers to transact business. In short, our business continuity plan is designed to permit our firm to resume operations as quickly as possible, given the scope and severity of the significant business disruption.
Our business continuity plan addresses: data backup and recovery; all mission critical systems; financial and operational assessments; alternative communications with customers, employees, and regulators; alternate physical location of employees; critical supplier, contractor, bank and counter-party impact; regulatory reporting; and assuring our customers prompt access to their funds and securities if we are unable to continue our business.
Our clearing firm, RBC Capital Markets, backs up our important records in a geographically separate area. While every emergency situation poses unique problems based on external factors, such as time of day and the severity of the disruption, we have been advised by our clearing firm that its objective is to restore its own operations and be able to complete existing transactions and accept new transactions and payments within twenty four hours. Your orders and requests for funds and securities could be delayed during this period.
Varying Disruptions – Significant business disruptions can vary in their scope, such as only our firm, a single building housing our firm, the business district where our firm is located, the city where we are located, or the whole region. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption to only our firm or a building housing our firm, we will transfer our operations to a local site when needed and expect to recover and resume business within twenty four hours or a reasonable timeframe conditions permitting. In a disruption affecting our business district, city, or region, we will transfer our operations to a site outside of the affected area, and recover and resume business within twenty four hours or a reasonable time frame conditions permitting. In either situation, we plan to continue in business, transfer operations to our clearing firm if necessary, and notify you through our website www.mcdermottadvisors.com or our customer emergency number, (386) 437-0072 how to contact us. If the significant business disruption is so severe that it prevents us from remaining in business, we will assure our customer’s prompt access to their funds and securities.
For more information – If you have questions about our business continuity planning, you can contact us at (610) 882-1460