What happens if Passfolio goes out of business?

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If Passfolio, for any reason, ceases to operate, the assets of the clients will be transferred in an orderly manner to another registered brokerage firm. It is usual for registered brokerages or clearing firms to keep their clients’ securities and money separate from their own. This way, even if a company fails the clients’ assets are still safe.

Brokers are also required to meet minimum net capital requirements to reduce the risk of insolvency and to be a member of the Securities Investor Protection Corporation (SIPC), protecting client securities accounts of up to $ 500,000 (maximum of $ 250,000 in cash).

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