To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.
What this means for you: When you open account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
Margin Disclosure Statement
The Margin Disclosure Statement is intended 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 securities in a margin account, it is important to carefully review the written Margin Agreement provided Cheevers, Hand and Angline, LLC through its clearing firm Pershing LLC (a subsidiary of the Bank of New York Mellon Corporation), and to consult with Cheevers, Hand and Angeline, LLC regarding any questions or concerns you may have regarding margin accounts.
When you purchase securities, you have the option of paying for them in full or borrowing part of the purchase price from Pershing. If you choose to borrow funds from Pershing, you will need to open a margin account with Pershing through Cheevers, Hand and Angeline, LLC. The securities purchased are used as collateral for the loan that was made to you or any other indebtedness arising after the initial transaction. If the securities in your brokerage account decline in value, so does the value of the collateral supporting your loan. As a result, Pershing can take action. For instance, Pershing can issue a margin call and/or sell securities or liquidate other assets in any of your brokerage accounts held with Pershing in order to maintain the required equity in the margin account.
It is important that you fully understand the risks involved in trading securities on margin.
These risks include:
- You can lose more funds that you deposit in the margin account.
- Pershing can force the sale of securities or other assets in your account(s).
- Pershing can sell your securities or other assets without contacting you.
- Pershing may change margin requirements or margin call time periods without notice to you.
- You are not entitled to choose which securities or other assets in your brokerage account(s) are liquidated or sold to meet a margin call.
- Pershing can increase its "house" maintenance margin requirements at any time and is not required to provide you with advance written notice.
- You are not entitled to an extension of time on margin call.
- Your written Margin Agreement with Pershing or your financial organization provides for certain important obligations by you.
For more information, please contact your financial advisor at Cheevers, Hand and Angeline, LLC.