Fidelity Investments doubles excess SIPC protection; Brokerage account assets now protected to $100 million.

BOSTON--(BUSINESS WIRE)--Sept. 13, 1996--Fidelity Investments today announced that effective immediately it has doubled the protection of its brokerage account assets to $100 million from $50 million per account registration.

The industry's basic account coverage is $500,000, with cash claims limited to $100,000, and is provided by the Securities Investor Protection Corporation (SIPC) to its member brokerage firms; $99.5 million in excess SIPC coverage is provided by a third party insurer.

"Few firms offer investors this level of account protection," said Robert Mazzarella, president of National Financial Correspondent Services, part of the clearing arm of Fidelity Investments. "It is a significant competitive advantage because most broker/dealer protection limits are much lower than ours, including those firms that are associated with large clearing firms. This doubling of our total account protection to $100 million is important to both our correspondent firms and to the millions of customer accounts our firm carries."

"Providing $99.5 million in excess SIPC account coverage benefits our retail customers and helps our correspondents attract larger accounts that seek maximum protection," said Charles Milligan, president of Fidelity Brokerage Services, Inc., the retail brokerage arm of Fidelity Investments.

Asset Guaranty Insurance Co., a wholly owned subsidiary of Enhance Services Group, Inc., will provide the excess SIPC coverage to Fidelity. Asset Guaranty has earned a AAA from Duff & Phelps rating service and a AA from Standard & Poors.

Both SIPC and the excess SIPC coverage plan protect stocks, bonds, mutual funds and any other investments that are registered with the SEC as securities and are held in a brokerage account. SIPC coverage for cash balances awaiting reinvestment held in brokerage accounts is limited to $100,000.

SIPC was created by the Securities Investor Protection Act of 1970 to encourage confidence in the U.S. securities markets. It is a non-profit, member-run organization that is funded by its member broker/dealers.

With both SIPC and excess SIPC coverage, customer assets are protected in the event of the financial failure of the member broker/dealer. Losses due to market conditions are not, and have never been, covered.

National Financial Services Corporation is one of the largest clearing firms in the country and serves approximately 300 retail and institutional clients, including independent brokerage firms, banks, insurance companies and financial planners. Fidelity Brokerage Services, Inc., is the nations second largest discount broker. Both National Financial and Fidelity Brokerage Services, Inc., are members of the New York Stock Exchange and SIPC.

Fidelity Investments is the nations largest mutual fund company and one of the leading providers of financial services. Fidelity offers investment management, retirement, brokerage and shareholders services directly to individuals and institutions, and through financial intermediaries. The firm also is the No. 1 provider of 401(k) retirement savings plans, the second largest discount brokerage firm and the third largest provider of 403(b) retirement plans for not-for-profit institutions in the United States. At July 31, 1996, Fidelity had total managed assets of $440.9 billion.

CONTACT: Fidelity Investments

Andy Trincia, 617-563-5800