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BUSINESS CONTINUITY PLAN:
Trading Direct, a division of York Securities Inc., has a Business Continuity Plan in place, whereby the response and any subsequent communications, would vary based upon the specific parameters associated with the significant business disruption (SBD).
In the event of a local disruption affecting telecommunications, utilities, or the physical office building & equipment which York Securities utilizes to conduct business, the firm has a plan in place utilize back-up providers/facilities/equipment, which are maintained on stand-by basis. In the event of a larger regional disruption, York plans to transfer its employees and operations to a location outside of the affected area. In either circumstance, a plan is in place to maintain or resume limited or normal operations as soon as possible after the disruption occurs.
As a fully disclosed firm, York Securities relies upon it’s clearing agent, Axos Clearing LLC (a wholly owned subsidiary of the Axos Financial, Inc ) to maintain customer records, custody cash and securities balances, and clear & settle securities transactions. Axos Clearing also provides order entry systems for York Securities to use for its customers. In the event of normal and or back-up system failure, the clearing firm's objective is to restore operations as quickly as possible, so that York may resume conducting business. However, it is possible that security orders and requests for funds and securities could be delayed during this period. Axos Clearing's business continuity plan and its other disclosures can be viewed at: https://www.axosclearing.com/disclosures/
If York is unable to maintain or resume normal operations, selected operations may be transferred to Axos Clearing LLC. Their contact information can be obtained from your monthly statement, or from their website at https://www.axosclearing.com/contact-us/
In the event of any disruption, York Securities has a plan in place to communicate any necessary emergency information via it's website, email, or telephone, to its customers, business partners, regulators, etc., as needed. If you have further questions about our business continuity planning, please contact us (telephone: 212-766-0230 / e-mail:email@example.com). Contact information is also displayed on your monthly statements or at the Company Info page: http://www.tradingdirect.com/Contact
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As a discount broker, Trading Direct, a division of York Securities, Inc., does not render advice as to security selection, nor give tax or legal advice. Trading Direct offers investment information and research from Independent Third Party Vendors believed to be reliable. This investment information and research is provided for general information only and is not to be construed as an offer to sell or a solicitation of an offer to buy any investment security by Trading Direct. These independent third party vendors may render any opinions or recommendations they desire. Trading Direct, a division of York Securities Inc. does not make any warranties or guarantees in any way with regard to this research or investment information. TRADING DIRECT, A DIVISION OF YORK SECURITIES INC. GIVES NO EXPRESS OR IMPLIED WARRANTIES (INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE) WITH RESPECT TO THE INFORMATION.
Neither Trading Direct, a division of York Securities Inc., nor any independent provider/transmitter of Information shall be liable in any way, and you agree to indemnify and hold harmless Trading Direct and the independent providers/transmitters for (1) any inaccuracy, error, or delay in, or omission of (a) any Information, or (b) the transmission or delivery of Information; (2) any loss or damage arising from or occasioned by (a) any such inaccuracy, error, delay, or omission, (b) non-performance, (c) interruption of Information due either to any negligent act or omission by Trading Direct or providers/transmitters of Information or to any "force majeure" (i.e. flood, extraordinary weather conditions, earthquake, or other acts of God, fire, war, insurrection, riot, labor dispute, accident, action of government, communications, power failure, or equipment or software malfunction) or any other cause beyond the reasonable control of Trading Direct or the Information providers/transmitters.
In order to protect against identity theft and fraudulent activity in my account, I agree to be responsible for the protection of my user name and password. My broker, Trading Direct, a division of York Securities, Inc, will not be held responsible for any liability resulting from identity theft or fraudulent activity in my account.
I understand and acknowledge that:
a. Penny stocks (any equity security in which the bid and ask price of the security is less than $5 a share) are generally considered high-risk investments and should be purchased purely for speculation.
b. The purchase of penny stocks may involve significant risks, including the loss of my entire investment.
c. Penny stocks may trade infrequently.
d. A market and/or a price may be unavailable when I wish to sell penny stocks and I could lose my entire investment.
e. Even minimum commission costs for this transaction may result in a significant adverse effect to the return on my investment.
f. I attest that any order I place that was not solicited directly or indirectly by you and any security selection is solely my decision.
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ELECTRONIC TRADING NOTICE
During times of high market volatility and fast moving stock prices, Trading Direct clients could expect and should be aware of possible rapid price changes, execution delays, and potential access problems. As a result of possible rapid price fluctuations, stock quotes may not keep pace with the actual trading price. Therefore, clients may be at risk of receiving an execution price varying from the market price at the time the order was placed. Such delays in order execution may also occur as a result of heavy order volume in the marketplace and market imbalances. These delays can result in losses, late trade reports, and/or an execution price different from the quote displayed at the time of order entry. You must consider the type of order and your investment objectives carefully before placing an order electronically.
Any decision you may make to buy, sell or hold a security, based on your research will be entirely your own and not in any way to be deemed to be endorsed, or influenced by, or attributed to Trading Direct. It is further understood that, without exception, any order based on such research that is placed with Trading Direct for execution is and will be treated as an UNRECOMMENDED, AND UNSOLICITED ORDER, to include all securities.
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MARGIN DISCLOSURE STATEMENT (Finra Rule 2264):
We are furnishing this document to you to provide some basic facts about purchasing securities on margin, and to alert you to the risks involved with trading securities in a margin account. Before trading stocks in a margin account, you should carefully review the margin agreement provided by your firm. Consult your firm regarding any questions or concerns you may have with your margin accounts.
When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from your brokerage firm. If you choose to borrow funds from your firm, you will open a margin account with the firm. The securities purchased are the firm's collateral for the loan to you. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and, as a result, the firm can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held with the member, in order to maintain the required equity in the account.
It is important that you fully understand the risks involved in trading securities on margin. These risks include the following:
• You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to provide additional funds to the firm that has made the loan to avoid the forced sale of those securities or other securities or assets in your account(s).
• The firm can force the sale of securities or other assets in your account(s). If the equity in your account falls below the maintenance margin requirements, or the firm's higher "house" requirements, the firm can sell the securities or other assets in any of your accounts held at the firm to cover the margin deficiency. You also will be responsible for any short fall in the account after such a sale
• The firm can sell your securities or other assets without contacting you. Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that the firm cannot liquidate securities or other assets in their accounts to meet the call unless the firm has contacted them first. This is not the case. Most firms will attempt to notify their customers of margin calls, but they are not required to do so. However, even if a firm has contacted a customer and provided a specific date by which the customer can meet a margin call, the firm can still take necessary steps to protect its financial interests, including immediately selling the securities without notice to the customer.
• You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call. Because the securities are collateral for the margin loan, the firm has the right to decide which security to sell in order to protect its interests.
• The firm can increase its "house" maintenance margin requirements at any time and is not required to provide you advance written notice. These changes in firm policy often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the call may cause the member to liquidate or sell securities in your account(s).
• You are not entitled to an extension of time on a margin call. While an extension of time to meet margin requirements may be available to customers under certain conditions, a customer does not have a right to the extension.
(b) Members shall, with a frequency of not less than once a calendar year, deliver individually, in paper or electronic form, the disclosure statement described in paragraph (a) or the following bolded disclosures to all non-institutional customers with margin accounts:
Securities purchased on margin are the firm's collateral for the loan to you. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and, as a result, the firm can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held with the member, in order to maintain the required equity in the account. It is important that you fully understand the risks involved in trading securities on margin. These risks include the following:
You can lose more funds than you deposit in the margin account.
The firm can force the sale of securities or other assets in your account(s).
• The firm can sell your securities or other assets without contacting you.
• You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call.
• The firm can increase its "house" maintenance margin requirements at any time and is not required to provide you advance written notice.
You are not entitled to an extension of time on a margin call.
The annual disclosure statement required pursuant to this paragraph (b) may be delivered within or as part of other account documentation, and is not required to be provided in a separate document or on a separate page.
(c) In lieu of providing the disclosures specified in paragraphs (a) and (b), a member may provide to the customer and, to the extent required under paragraph (a) post on its Web site, an alternative disclosure statement, provided that the alternative disclosures shall be substantially similar to the disclosures specified in paragraphs (a) and (b).
(d) For purposes of this Rule, the term "non-institutional customer" means a customer that does not qualify as an "institutional account" under Rule 4512(c)
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DAY-TRADING RISK DISCLOSURE STATEMENT, FINRA RULE 227:
You should consider the following points before engaging in a day-trading strategy. For purposes of this notice, a "day-trading strategy" means an overall trading strategy characterized by the regular transmission by a customer of intra-day orders to effect both purchase and sale transactions in the same security or securities.
Day trading can be extremely risky. Day trading generally is not appropriate for someone of limited resources and limited investment or trading experience and low risk tolerance. You should be prepared to lose all of the funds that you use for day trading. In particular, you should not fund day-trading activities with retirement savings, student loans, second mortgages, emergency funds, funds set aside for purposes such as education or home ownership, or funds required to meet your living expenses. Further, certain evidence indicates that an investment of less than $50,000 will significantly impair the ability of a day trader to make a profit. Of course, an investment of $50,000 or more will in no way guarantee success.
Be cautious of claims of large profits from day trading. You should be wary of advertisements or other statements that emphasize the potential for large profits in day trading. Day trading can also lead to large and immediate financial losses.
Day trading requires knowledge of securities markets. Day trading requires in-depth knowledge of the securities markets and trading techniques and strategies. In attempting to profit through day trading, you must compete with professional, licensed traders employed by securities firms. You should have appropriate experience before engaging in day trading.
Day trading requires knowledge of a firm's operations. You should be familiar with a securities firm's business practices, including the operation of the firm's order execution systems and procedures. Under certain market conditions, you may find it difficult or impossible to liquidate a position quickly at a reasonable price. This can occur, for example, when the market for a stock suddenly drops, or if trading is halted due to recent news events or unusual trading activity. The more volatile a stock is, the greater the likelihood that problems may be encountered in executing a transaction. In addition to normal market risks, you may experience losses due to system failures.
Day trading will generate substantial commissions, even if the per trade cost is low. Day trading involves aggressive trading, and generally you will pay commissions on each trade. The total daily commissions that you pay on your trades will add to your losses or significantly reduce your earnings. For instance, assuming that a trade costs $16 and an average of 29 transactions are conducted per day, an investor would need to generate an annual profit of $111,360 just to cover commission expenses.
Day trading on margin or short selling may result in losses beyond your initial investment. When you day trade with funds borrowed from a firm or someone else, you can lose more than the funds you originally placed at risk. A decline in the value of the securities that are purchased may require you to provide additional funds to the firm to avoid the forced sale of those securities or other securities in your account. Short selling as part of your day-trading strategy also may lead to extraordinary losses, because you may have to purchase a stock at a very high price in order to cover a short position.
Potential Registration Requirements. Persons providing investment advice for others or managing securities accounts for others may need to register as either an "Investment Adviser" under the Investment Advisers Act of 1940 or as a "Broker" or "Dealer" under the Securities Exchange Act of 1934. Such activities may also trigger state registration requirements.
(b) In lieu of providing the disclosure statement specified in paragraph (a), a member that is promoting a day-trading strategy may provide to the customer, individually, in paper or electronic form, prior to opening the account, and post on its Web site, an alternative disclosure statement, provided that: (1) The alternative disclosure statement shall be substantially similar to the disclosure statement specified in paragraph (a); and (2) The alternative disclosure statement shall be filed with FINRA's Advertising Department (Department) for review at least 10 days prior to use (or such shorter period as the Department may allow in particular circumstances) for approval and, if changes are recommended by FINRA, shall be withheld from use until any changes specified by FINRA have been made or, if expressly disapproved, until the alternative disclosure statement has been refiled for, and has received, FINRA approval. The member must provide with each filing the anticipated date of first use.
(c) For purposes of this Rule, the following terms shall have the meanings specified below:
(1) "Day-trading strategy" shall have the meaning provided in Rule 2130(e).
(2) "Non-institutional customer" means a customer that does not qualify as an "institutional account" under Rule 4512(c)
(3) "Promoting a day-trading strategy" shall have the meaning provided in Rule 2130.01. top of page
EXTENDED HOURS TRADING RISK DISCLOSURE:
You should consider the following points before engaging in extended-hours trading. "Extended-hours trading" means trading outside of "regular trading hours." "Regular trading hours" generally means the time between 9:30 a.m. (ET) and 4 p.m. (ET).
Risk of Timing of Order Entry—All orders entered and posted during extended-hours trading sessions must be limit orders. You must indicate the price at which you would like your order to be executed. By entering the price, you agree not to buy for more or sell for less than the price you entered, although your order may be executed at a better price. Your order will be executed if it matches an order from another investor or market professional to sell or purchase on the other side of the transaction. In addition, there may be orders entered ahead of your order by investors willing to buy or sell at the same price. Orders entered earlier at the same price level will have a higher priority. This means that if the market is at your requested price level, an order entered prior to your order will be executed first. This may prevent your order from being executed in whole or in part.
Risk of Execution Pricing—For extended-hours trading sessions, quotations will reflect the bid and ask currently available through the utilized quotation service. The quotation service may not reflect all available bids and offers posted by other participating electronic communications networks (ECNs) or exchanges, and may reflect bids and offers that may not be accessible through Axos Clearing or respective trading partners. This quotation montage applies for both pre- and post-market sessions.
Not all systems are linked; therefore, you may pay more or less for your security purchases or receive more or less for your security sales through a participating ECN or exchange than you would for a similar transaction on a different ECN or exchange.
Risk of Communications Delays or Failures—Delays or failures in communications due to a high volume of orders or to other computer or system problems, including Internet disruptions, may cause delays in or prevent the execution of your order. Any communication or computer problems experienced by Axos Clearing, its designated order manager, or participating ECN or exchange, may prevent or delay the order from being executed. Axos Clearing reserves the right to temporarily or permanently close an extended-hours trading session without prior notification in the event of system failures or unforeseen emergencies. Axos Clearing will not be held liable for missed executions in the case of a system failure.
Risk of Lower Liquidity—Liquidity refers to the ability to buy and sell securities. Generally, if there are more orders available in the market, then the security is more liquid. Due to limited trading activity in the extended-hours trading sessions, the liquidity in these sessions may be significantly less than during regular market hours. Lower liquidity may prevent your order from being executed in whole or in part, or from receiving as favorable a price as you might receive during regular trading hours. In addition, lower liquidity means fewer shares of a given security are being traded, which may result in larger spreads between bid and ask prices and volatile swings in stock prices.
Risk of Trading Halts—News stories may have a significant impact on stock prices during extended-hours trading sessions. The Securities and Exchange Commission (SEC), Financial Regulatory Authority (FINRA), or a stock exchange may impose a trading halt when significant news has affected a company's stock price. Any SEC-, FINRA-, or exchange-imposed trading halt will be enforced. Pending orders for a security will be held upon imposition of a trading halt for that security and reinitiated upon resumption of trading during that session.
Risk of Duplicate Orders—There is a risk of duplicate orders if you place an order for the same security in both an extended-hours session and the regular trading session, even if that order is a day order. Orders executed during regular trading hours may not be confirmed until after the post-market extended trading session has already begun. Similarly, orders executed in the pre-market session may not be confirmed until after regular trading has begun.
Risk of Partial Executions—Orders placed during extended trading hours are entered through a participating ECN or exchange, which may be linked to other ECNs or exchanges. Because you cannot add qualifiers to an order, such as all or none (AON) or fill or kill (FOK), a round lot order may be filled in part by an odd lot or mixed lot order, leaving stock left over to buy or to sell. There is a risk that the remaining order may not be filled during the extended-hours session. An odd lot may not be represented in the displayed quote. This would occur in instances in which an order has an execution leaving an odd lot. There are no execution guarantees for an odd lot or the odd lot portion of a mixed lot portion of an order.
Risk of Lack of Calculation or Dissemination of Underlying Index Value or Intraday Indicative Value—For certain derivative securities products, an updated underlying index value or intraday indicative value may not be calculated or publicly disseminated in extended trading hours. Since the underlying index value and intraday indicative value are not calculated or widely disseminated during the opening and late trading sessions, an investor who is unable to calculate implied values for certain derivative securities products in those sessions may be at a disadvantage to market professionals.
Risk of Higher Volatility—Volatility refers to the changes in price that securities undergo when trading. Generally, the higher the volatility of a security, the greater its price swings. There may be greater volatility in extended-hours trading than in regular market hours. As a result, your order may only be partially executed, or not at all, or you may receive an inferior price in extended-hours trading than you would during regular market hours.
Risk of News Announcements—Normally, issuers make news announcements that may affect the price of their securities after regular market hours. Similarly, important financial information is frequently announced outside of regular market hours. In extended-hours trading, these announcements may occur during trading and, if combined with lower liquidity and higher volatility, may cause an exaggerated and unsustainable effect on the price of a security.
Risk of Wider Spreads—The spread refers to the difference in price for which you can buy and sell a security. Lower liquidity and higher volatility in extended-hours trading may result in wider than normal spreads for a particular security.
Orders executed during an extended-hours session are considered to have been executed during that day’s regular session for settlement and clearing purposes. Settlement dates for extended-hours trades follow the same rules as regular hours trading. For instance, if settlement is two business days after the day on which the transaction occurred and your pre-market order to buy is executed on Monday, the 6th day of the month, the settlement date is Wednesday, the 8th day of the month, and payment is due at that time.
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Options involve risk and are not suitable for all investors. Before trading options read the Characteristics & Risks of Standardized Options booklet
. (external link to http://www.theocc.com/).
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STOP ORDER DISCLOSURE:
• Stop prices are not guaranteed execution prices. A "stop order" or "trailing stop order" becomes a "market order" when the "stop price" is reached and firms are required to execute a market order fully and promptly at the current market price. Therefore, the price at which a stop order ultimately is executed may be very different from the investor's "stop price." Accordingly, while a customer may receive a prompt execution of a stop order that becomes a market order during volatile market conditions, the execution may be at a significantly different price from the stop price if the market is moving rapidly.
• Stop or trailing stop orders may be triggered by a short-lived, dramatic price change. Customers should be informed that during periods of volatile market conditions, the price of a stock can move significantly in a short period of time and trigger an execution of a stop order (and the stock may later resume trading at its prior price level). Investors should understand that if their stop order is triggered under these circumstances, they may receive an execution at an undesirable price even though the price of the stock may stabilize during the same trading day.
• Sell stop or trailing stop orders may exacerbate price declines during times of extreme volatility. The activation of sell stop orders may add downward price pressure on a security. If triggered during a precipitous price decline, a sell stop order also is more likely to result in an execution well below the stop price.
• Placing a "limit price" or "limit offset" on a stop or trailing stop order, respectively, may help manage some of these risks. A stop order with a "limit price" (a "stop limit" order) or a trailing stop with a limit offset becomes a "limit order" when the stock reaches the "stop price." A "limit order" is an order to buy or sell a security for an amount no worse than a specific price (i.e., the "limit price").
• By using a stop limit order instead of a regular stop order or a trailing stop with a limit offset instead of a regular trailing stop order, a customer will receive additional certainty with respect to the price the customer receives for the stock. However, investors also should be aware that, because brokers cannot sell for a price that is lower (or buy for a price that is higher) than the limit price selected, there is the possibility that the order will not be executed. Investors are encouraged to use limit orders in cases where they prioritize achieving a desired target price more than getting an immediate execution irrespective of price.
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Department of Labor (DOL) Fiduciary Rule Disclosure Statement:
The US Department of Labor adopted new rules relating to fiduciaries in 2016, which are to be implemented in 2017. The "Fiduciary Rule" re-defines who is acting as fiduciary with respect to services provided to retirement accounts, including IRA's.
Definition of a "Fiduciary": A fiduciary is a person having an ethical or legal relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary will prudently take care of money or assets for another person. One party, i.e. a corporate trust company or bank trust department, acts in a fiduciary capacity to the other one, who for example, has entrusted funds to the fiduciary for investment or safekeeping. Likewise, asset managers (i.e. pension plans, endowments and other tax-exempt assets) are considered fiduciaries under applicable statutes and laws. In a fiduciary relationship, one person, in a position of vulnerability, justifiably vests trust, good faith, confidence, and reliance, in another, whose protection, advice, or aid is sought in some matter. In a relation as such, good conscience requires the fiduciary to act for the sole benefit and best interest, at all times, of the one who trusts.
The business model of York Securities, Inc, is that of a non-soliciting, non-discretionary securities broker. We are not considered a bank, insurance carrier, or investment advisor. We do not provide advice, act in principal, offer proprietary securities, or offer any insurance company like products (annuities or policies). We make various types of securities available to you, including investment companies (open-end mutual funds, closed-end mutual funds, exchange traded funds or notes). While an asset manager or investment advisor may decide or recommend which securities to buy or sell, and may have a vested interest in the promotion of such, we do not manage, recommend, advise, solicit, or exercise discretion regarding our client's securities orders. We receive revenue in the form of commissions, or through mutual fund loads or expenses as compenstation for acting as a non-discretionary and non-soliciting agent for securities transactions. All orders are unsolicited, and all client accounts, including IRA's are self-directed. A commission schedule is available upon request. Any loads or operating expenses involving with transacting or owning mutual fund shares are displayed in the individual fund's respective prospectus.
If a client has a question about the attributes of a security, we will make a good faith effort to obtain a factual (non-opinion based) answer, and relay that information to him or her. The security in question must be one that is generally available to the investing public, as we do not offer any proprietary securities. While we may advertise our products and services in general, there no promotion given to a specific security, as we do not provide any form of investment advice or make any recommendations.
Account holders acknowledge the following statements made by York Securities to it's clients, in the bullet list below:
• You (the client) are responsible for exercising independent judgment for the investment of assets in your IRA Account.
• You (the client) are independent of York Securities.
• You (the client) are capable of evaluating investment risk independently, both in general and with regard to all transactions and investment strategies.
• You (the client) acknowledge that we do not provide investment advice or give investment advice in a fiduciary capacity.
• You (the client) acknowledge that any commissions, fees, or loads paid to us, in not for provision of investment advice regarding the decision to purchase or maintain an investment, but rather for the general agency execution service we provide.
• You (the client) acknowledge that any rollovers to us shall either be in-kind, or consist of cash. You shall make any subsequent investment decisions.
Additional information regarding pricing (commissions, fees, loads) may found in the "Pricing" section of our website. To contact us with any questions, click on "Contact" in the top-navigation bar of our website.
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FINANCIAL EXPLOITATION OF SENIORS & SPECIFIED ADULTS:
FINRA member firms, which includes Trading Direct, a division of York Securities, Inc., may place a temporary hold on requested disbursements of funds or securities, from the account of specified customers, where there is a reasonable belief of financial exploitation.
Effective February 2018, a new designation, called a trusted contact person (TCP), was instituted in the financial services industry. The TCP is intended to be an alternate contact/resource for the member firm, if necessary, in administering the account of a senior customer (age 65 & over) or a specified adult (age 18 or older perceived to have a mental or physical impairment, who is unable to protect his or her interests). The firm may contact the TCP when the latter cannot be contacted after multiple attempts, or if it is believed there could be diminished mental or physical capacity, of if it is believed a financial exploitation may be occurring. The TCP may retrieve or relay personal important information, on behalf of the customer.
Interested account owners may obtain a copy of the "Trusted Contact Person form" at the Document Center (Other Forms Section), or by Contacting Us.
Additionally, FINRA has developed a Securities Helpline for Seniors. If you are a senior investor, you may call 1-844-57-HELPS (844-574-3577) Mon-Fri 9AM-5PM Eastern time, if your feel you need assistance from FINRA, or to raise concerns about issues with your brokerage account investments.
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