Customer Asset Protection Company (CAPCO) was formed in late 2003 to provide protection over the limits 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") was provided to the securities affiliates of CAPCO participants in the form of bonding coverage. CAPCO issued its first surety bonds in early 2004. As of early 2009, all surety bonds issued by CAPCO had expired. Given that account protection under the CAPCO surety bond is triggered only in the event of the financial failure and liquidation of a participating securities affiliate commenced prior to the 2009 expiration of the bonds, CAPCO account protection remains available only under the bonds issued to Lehman Brothers Inc. and Lehman Brothers International (Europe), and according to the terms of those bonds. No CAPCO account protection is available to customers of any other CAPCO participant or any non-participant broker. Account protection is available only if the customer's securities are not returned, 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.