non-brokerage account
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1. Outside Business Name Marketing Name and the Securities America companies are unaffiliated Include this line if you have an approved Outside Business Name OBA or Marketing Name To display a tax related professional designation add the following line at the end of the disclosure Tax related services are offered through Outside Business Name SAI Representative and SAA Advisory Business Card Disclosure Securities offered through Securities America Inc Member FINRA SIPC Name Registered Representative or another SAI title Advisory services offered through Securities America Advisors Inc Name Financial Advisor or another SAA title Outside Business Name Marketing Name and the Securities America companies are unaffiliated Include this line if you have an approved Outside Business Name OBA or Marketing Name To display a tax related professional designation add the following line at the end of the disclosure Tax related services are offered through Outside Business Name Note If you do not wish to use two titles one for SAI and one for SAA you may combine the disclosure as follows Securities offered through Securities America Inc Member FINRA SIPC and advisory services offered through Securities America Advisors Inc Name Representative Outside Business Name Marketing Name and the Securities America companies are unaffiliated Include this line if you have an approved Outside B2. Financial Services firms like ours are required to affiliate with a broker dealer to process investment transactions for our clients We are pleased to let you know that our new partner is Securities America based in the Midwest Think of Securities America as the behind the scenes support for me your financial advisor They have extensive technology compliance and operational support which allow me to provide comprehensive and professional support to you There are many reasons why we ve chosen Securities America the main ones are e Securities America s mission is to foster the success of financial professionals so they can provide quality objective financial advice and service to their clients e A wide range of products and programs available to allow for more choices in customizing a plan to help you meet your goals e he firm processes or clears brokerage transactions through insert Pershing and or National Financial These are just a few of the reasons that believe this partnership will only strengthen my ability to serve you and help me to further improve the level of balanced guidance you have come to expect from our firm You are a valued client and we would like to take this opportunity to thank you for your business It is a great pleasure to work with you and we look forward to assisting you in your future financial goals and decisions The enclosed documents authorize me to change the broker dealer on
3. 123 Mage Street Sute 109 Anpan S 02009 123 456 7800 Ext 12 23 tw x m erat nc mer AW X eni trough Sec ato u 123 Maple Street Suite 100 Anytown ST 00000 123 456 7890 Ext 12 Fax 123 456 7891 jsmart amp isecuritiesamerica com Securitias America Inc member FINRA SIPC 29 Securities America Advisors Stationary i Securities America John Smart Reoresentabve M Securities America 123 Mege Street Sule 100 Anytown ST 00000 A Securities America John Smart Hegusteed Yecresectaine Vows manii Ausi ai 723 Maple Sbor S de 300 Antw 7 00000 m apr M 12 Fax bes Ee 123 Maple Street Suite 100 Anytown ST 00000 123 456 7890 Ext 12 Fax 123 456 789 Securities America inc member FINRAVSIPC WAA Round Ka tien eh 20 Securities America and Semi Custom Stationary 123 Anystreet John Broker Financial Services Anyen NE 55555 Charting a Course to Achieve Your Financial Goals John Broker CFP President 2 f Appendix Ill All direct mail sent out must be approved prior to use by compliance communication review New Securities America representatives can chose one of the below options to announce their broker dealer change All client communication must be submitted for approval and any client letters should be submitted on approved letterhead Sample Client Notification Letter 1 Dear lt lt Insert N
4. Additional Documents Provide to Client SAA Wrap Fee Brochure Advisor Brochure Supplement 32 National Financial Brokerage Account Registrations Individual Joint Custodial Account Application Account Transfer Form with client statement dated within 90 days Qualified IRA Roth Rollover SEP and BDA IRA RA Account Application Account Transfer Form with client statement dated within 90 days Trust Account Application Trustee Certification of Investment Powers Account Transfer Form with client statement dated within 90 days Transfer on Death Individual or Joint Account Application Transfer on Death Account Agreement Account Transfer Form with client statement dated within 90 days Corporate Account Application W 9 required on Corporation and S Corp registrations Certificate of Corporate Resolution Include Articles of Incorporation if Corporate Seal is not imprinted on form Account Transfer Form with client statement dated within 90 days Corporate Qualified Plan Account Application Additional Account Holder Appendix Fiduciary Certification of Investment Powers Omnibus Account Acknowledgement and Indemnification Agreement Account Transfer Form with client statement dated within 90 days Non Corporate Account Application Non Corporate Resolution Account Transfer Form with client statement dated within 90 days Popular Optional Brokerage Services Bro
5. Completion of the kits is the first step toward your new future at Securities America It is a critical step to satisfy contracting and FINRA requirements Both kits must be completed and paperwork returned according to the instructions provided Note f you are joining an existing branch office make sure all physical forms are sent to your OSJ office for signatures Note Independent RIA firms should contact their transition consultant to discuss Required documents for submission to FINRA Representative Agreement Representative Addendum Copy of letter of resignation or U5 e W9 ACH form and voided check e Electronic fingerprints e Final authorization to submit registration U4 review Additional required documents e Copy of state insurance licenses e Copy of professional designations and or advanced degrees For assistance with the online licensing kit you may contact our dedicated licensing team at 800 747 6111 option 6 for assistance Note You must be securities and insurance licensed in your client s state of residence Representatives reporting to a branch office must confirm their OSJ is licensed in the same states Insurance Licenses In order to conduct and transfer variable insurance business you will need to provide a copy of state insurance licenses Review insurance licenses to verify they are active If expired work with the respective state to obtain a current copy New appointment paperwork is r
6. A Securities America Your business growth expert Securities America Inc Member FINRA SIPC Securities America Advisors Inc An SEC Registered Investment Advisory Firm www SecuritiesAmerica com 10 2012
7. selection makes them an ideal partner for independent representatives that use fixed business to supplement their securities business TNBC s system allows representatives to write fixed life insurance business through an electronic application system One Resource Group One Resource Group is one of the fastest growing managing general agencies in the country They are a fit for branch offices looking to take their fixed business production to the next level One Resource Group has a proven track record of partnering with branch managers to create fixed insurance opportunities within their branch If you are a branch manager or produce fixed business at the Million Dollar Round Table level this could be the right relationship for you USAdvisors Network Insurance Agency USANI USANI is well suited to provide insurance products services and planning platforms that support educate and motivate representatives They utilize regional partners to work directly with you to grow your fixed insurance practice This service is designed specifically for representatives looking to break into the fixed insurance business but want to rely on an experienced team to cultivate their opportunities Insurmark Insurmark is a marketer of fixed and indexed annuities They have a team of personal annuity consultants dedicated to helping you find the right fit for your clients This is a good relationship for those representatives that work mainly with fixed or i
8. submit a new account form and a change of dealer for each registration Example 2 If a client has an individual account at American Funds and an individual account at John Hancock submit one New Account Form and one change of dealer form for each sponsor company Individual Joint Custodial Transfer on Death 529 Plan Qualified Account Application e Securities America Change of Dealer Optional Client statement Trust Account Application e Securities America Change of Dealer Optional Client statement e Trustee Certification of Investment Powers Corporate Account Application e W 9 required on Corporation and S Corp registrations Certificate of Corporate Resolution Include Articles of Incorporation if Corporate Seal is not imprinted on form Securities America Change of Dealer Optional Client statement Corporate Qualified Plan Account Application Additional Account Holder Appendix Fiduciary Certification of Investment Powers Omnibus Account Acknowledgement and Indemnification Agreement Securities America Change of Dealer Optional Client statement Include a list of plan participants participant SSN s and participant account numbers Corporate Qualified Participant Plan Account Application Fiduciary Certification of Investment Powers Securities America Change of Dealer Optional Client statement Additional Account Holder Appendix Third Party Money Manager Programs
9. your accounts to Securities America Please review them carefully make any necessary updates and sign where indicated A prompt return of the forms will facilitate the continuation of our ability to service your accounts We would appreciate the forms returned by Insert date As always if you have any questions or concerns about this topic or anything else related to your financial goals don t hesitate to contact our office Sincerely 30 Appendix IV Basic General Suggestions Not all registrations are covered in this guide Contact a transition consultant for assistance with other registrations Once effective with Securities America you will have access to FastForms a utility to populate client paperwork f the client has annuities linked on a brokerage statement discuss the change of ownership and change of dealer process with a transition consultant Advisory accounts have additional paperwork requirements that include a client agreement and fee schedule A Customer Disclosure Statement is an additional form required for all Bank client or Credit Union members Optional services like margin option periodic investments distributions check writing or ACH require additional forms 31 Direct at Fund non brokerage account An Account Form is required for each client registration Example 1 If a client has an individual account at American Funds and an IRA account at John Hancock
10. A Securities America Transition Guide making your transition a success Table of Contents Welcome to Securities America Affiliation Transferring Your Licenses FINRA Regulations Insurance Licenses Associated Persons AP Kit Important Considerations Privacy Policy Non Compete Wealth Management Products Fixed Insurance Business Relationships Insurance Marketing Organization Partners Alternative Investments Mutual Funds Advisory Services Independent IRA Create Your Presence Establish Your Brand Name Establish Your Brand Image How to Order Your Stationary Creating Your Own Stationary Advertising Submission Utility Ad Trax Titles and Required Disclosures SAI Representative Business Card Disclosure SAI Representative and SAA Advisory Business Card Disclosure Additional Required Compliance Disclosures Fax Cover Sheets Email Disclosures Answering the Telephone Voicemail Message Common Materials Submitted for Review Broker Dealer Use Only PO N 2 m oO N M oa 0100 A A Q O 0 0 NN DDD O Table of Contents Compliance Logs Blotters and Files Compliance Additional Information Technology Accessing Client Information 24 7 Account Manager CRM Contact Relationship Management Fast Forms Hosted Email Social Media Non Brokerage Order Entry NBOE Support Preparing Your Book for the Transition What Steps to Take After Inventory FAQ Appendix I Sample Termination Lette
11. Encryption Software 128 bit Required on all PCs laptops and 256 bit AES portable media containing any sort of personal information Data Loss Protection DLP Required for all advisors with MA clients provided by SAI Altiris Minimum Security Verification Provided by SAI platform Firewall Protection e Office Mobile e Office Advantage can now be used Blackberry and Windows phone devices Access on iPhone iPad Android phones and are currently not compatible Refer to Android tablets Info tab Optional Services section for information Important Information Adobe Acrobat Reader All Adobe Reader versions after 6 02 are supported however periodic session refreshes may be required if a need arises to uncheck a selected check box on forms for all supported versions Note Some software downloads may include additional add on software from other vendors Please carefully read and download only what software you need Scanners Flatbed or Auto Feed Scanners typically feature resolutions of 600 X 600 dpi or higher Please lower the resolution to 200 dpi to avoid excessive image file sizes and poor system performance TIFF formats provide better quality than PDF although both are accepted Color and grayscale images should be avoided black and white resolution should be used Document size must be set to 8 1 2 X 11 and 50 sheet document feeder is recommended Duplex hardware options are available but may impact scan speed When purch
12. SAA began operations in 1994 Representatives of SAI may become Investment Advisor IA representatives of SAA or have their own Registered Investment Advisor RIA to utilize our investment advisory services Client agreements and customizable marketing materials are provided for our internal asset management programs for both IA representatives and independent RIAs To discuss fee based services please contact an advisory consultant at 800 747 6111 option 5 option 2 Independent RIAs For more than 15 years Securities America has partnered with independent RIA firms to offer top notch technology and business solutions to help build great businesses Upon joining SAI you will continue to have the convenience and flexibility necessary to support and grow an independent business model Securities America has fee based programs which allow you to manage client assets on a discretionary basis We will handle all the administrative work such as advisory fee calculation invoicing and deductions and performance reporting allowing you to concentrate on managing assets and growing your advisory business Create Your Presence Establishing Your Brand Name As independent business owners you want to build a strong brand presence in your community Sounds easy enough but there are a host of decisions that should be made to establish and grow your brand effectively We present you with some critical first steps as tips to get a solid start
13. ame gt gt am very excited to announce a change that we are making in the operation of our business name of business We have decided to affiliate with Securities America Inc one of the largest independent broker dealers in the country located in the Midwest A broker dealer supports financial professionals by providing service and technology My decision to change broker dealers was carefully considered This new arrangement will allow us to bring additional services and opportunities to you our valued client wish to assure you that this new relationship will not adversely effect your account or the relationship you hold with name of business or representative You will continue to work with us to pursue your financial goals So that we may continue to provide you with financial service have enclosed paperwork need you to sign to notify my prior broker dealer that you wish your account to be transferred to Securities America If you have any questions at all please give us a call and we will be more than happy to explain this exciting new aspect of our business As always would like to thank you for your continued trust in allowing business name to help you work toward your financial goals Sincerely 28 Sample Client Notification Letter 2 Dear lt lt Insert Name gt gt Insert firm name is very excited to announce a change that we are making in the operations of our firm We have chosen to a
14. asing scanners please ensure that the scanner includes the ability to adjust resolution and color to these recommended settings Fax Machine Settings You will need to set up the device ID information on your Fax or Scanner Fax Machine Refer to the user manual for your specific machine on how to access and update this information Be sure to name your device your name or company name add your fax and phone number and have the date time stamp set correctly This allows you to accurately send and track faxes It also allows Securities America to more effectively assist in trouble shooting if an issues should arise with faxing paperwork Wireless Network Considerations e Home Small Office Wireless To ensure security do not use the system default settings or password Ensure WPA Wi Fi Protection Access or better encryption is enabled and SSID Service Set Identifier broadcasting is set to off to limit access to your PCs Refer to your IT professional for setting changes e Public Wireless When using your laptop netbook to access wireless Internet provided via public access locations hotels libraries coffee shops etc make sure your laptop firewall is running and your anti virus software is up to date Also make sure Whole Disk Encryption is installed and the laptop netbook is strong password protected Never stay connected to a public network longer then needed Access from public computers is not allowed 38
15. ate all required forms in one step Use Fast Forms to streamline the process of completing new account paperwork Hosted Email Securities America s e Office web mail system combines the power of Microsoft Outlook Web Access with the convenience of e Office to provide you with a powerful messaging tool e Office web mail allows you the flexibility of three options e Securitiesamerica com email domain e Private domain hosted by Securities America Private domain which you host To avoid the risk of identity theft through traditional unsecured email transmissions e Office web mail protects client confidential information sent to the home office from exposure and potential exploitation Additionally when Securities America hosts your email you have the ability to send encrypted messages to your clients Social Media LinkedIn Facebook and Twitter are the social networking websites that are approved for business use To utilize these tools representatives are required to submit a Social Networking Request Form and complete the required training program accessible in our Learning Management System The next steps include the installation of Socialware proxy on each browser and computer you plan to use for social networking and authorize Socialware to access your data on Linkedln 16 Facebook and or Twitter The request form will detail the specific steps you must take in order to be approved to use social networking websites for bus
16. bide by any non compete or non solicitation agreements entered into by prospective representatives Most such agreements state representatives will not solicit any client that held an account with the prior broker dealer Some agreements go so far as to prohibit a representative from servicing or even accepting a client s account from the prior broker dealer In certain cases a letter from the client verifying that the representative did not solicit him or her may assist the representative in defending a lawsuit filed by the prior broker dealer to enforce the non compete agreement However this is not always effective and would depend on the language in the agreement and the applicable state law The key point to understand is that the obligation in a non compete runs from the representative to the prior broker dealer and clients cannot arbitrarily waive the obligation for the representative States enforce non compete and non solicitation agreements differently so the prospective representative should be encouraged to engage a local attorney familiar with the laws of their state Wealth Management Products The choices are many and the needs diverse when you are trying to match your client s wants with strategies products and services available in today s complex marketplace Securities America s wealth management department has over 20 years of experience andis here to help you find viable effective answers to your needs to your cl
17. ble insurance products conducted at the office location Customer Holding Record The Customer Transaction Position Record lists all securities held under a particular client registration and is a chronological history of all transactions buys sells and exchanges brokerage and non brokerage including variable insurance products for each client registration Note It is required to maintain a physical log of the Daily Sales Blotter and the Customer Holding Record to document transactions for a direct sponsor company that does not provide a download of transactions to Securities America Product Cross Index Log 0SJ offices only The log is a chronological history of all customers who have bought and or sold a particular security and must be maintained for both brokerage and non brokerage transactions including variable insurance products Note OSJ s are required to maintain a physical log of the Product Cross Index file to document transactions for a direct sponsor company that does not provide a download of transactions to Securities America Check and Certificate Received Log Chronological listing of checks and stock certificates received in the office An online register is used to post when approved client payments or certificates are received in the mail or dropped off in person 11 Regulation T Extension Log This log is used to record all Regulation T extensions A Regulation T log is required for all offices that
18. curriculum designed to give anyone the important baseline knowledge of Securities America s technology After all the reguested courses have been attended you will be eguipped to work effectively with Securities America s systems How often do pay licensing fees When you request a new state registration or need to take a FINRA exam the appropriate fee will be charged to your commission statement FINRA registration fees are initially collected in October for the upcoming year New Beginning The combined effort of the Representative offices and Securities America s transition team is the key to a great transition We are dedicated to your success and growth with Securities America There are many programs and services at Securities America to benefit your clients and your practice We wish you all the best in your partnership with Securities America for years to come lt Date gt lt Business Address gt Re Affilation with Securities Company USA Dear Mr Mrs This letter will formally advise you that wish to terminate my relationship with Investment Company on date Sincerely John Broker Note Make sure a copy of this letter is submitted with your Licensing Kit 24 Securities America Stationary P i Securities America John Smart Regetered Representative Securities America 123 Maple Street Suite 100 Anytown ST 00000 A Securities America Vote d Pecresectz trm
19. d use the database to target clients by specific categories Driven from Account Manager data you can access management reports consolidated brokerage direct and not held realized unrealized gain or loss portfolio diversification and position 15 reports suitable for client presentation Transactions positions and balances are downloaded reconciled and stored in a centralized database at Securities America Account Manager integrates with other account maintenance applications to easily enter new transactions complete new account paperwork view scanned images start financial plans update client account information and much more Account Manager is part of the no cost e Office Advantage solution available to everyone in your office Now you and your team can focus more time on building relationships and growing your business Fast Forms Take the guesswork out of determining which forms you need and how to fill them out Our Fast Forms wizard drastically reduces the time spent on administrative work and helps eliminate data entry errors by generating professionally typed forms The online account set up feature will create an abbreviated version of the new account form and immediately assign a brokerage account number Use information from an existing Account Manager client or prospect record to populate the wizard enter the information from scratch or use a combination of both Once the client information is entered auto popul
20. direct mail The can be time consuming unless you have a small customer base in a small geographic area Requires planning and coordination between yourself and your staff but the benefits can outweigh the costs 21 Frequently Asked Questions Do need to get my E amp 0 insurance through Securities America Yes Securities America requires all representatives be covered through our E amp O policy which is carried by Everest National Insurance Company and Catlin Specialty Insurance Company Coverage under the policy is automatically effective on the first day of the representative s registration with Securities America When are commissions and advisory fees paid Commissions received and in good order Monday through Friday are paid the following Wednesday Commissions are generally posted to your bank account on Thursday or Friday Management fees in a brokerage account are paid on Friday after the fees are debited from the client account according to the established fee schedule monthly or quarterly Non Brokerage fees received by Wednesday will be paid on Friday Fees are generally posted to your bank account on Monday or Tuesday What method is used to calculate management fees in advisory accounts Fees are calculated and charged to the account in advance using the average daily balance ADB for NFS and the Period Ending Balance PEB for Pershing of the previous period month or quarter Fees are calculated and pa
21. ents at the time an account is open and annually thereafter of their process for securing client sensitive information The SEC Regulation S P governs this requirement and is in place to protect the data and best interests of the client not the broker dealer or representative The importance of these policies is to direct representatives broker dealers and their affiliates when the opportunity to share client sensitive data is present Note State law takes precedence over broker dealer sharing policies Sharing Under a favorable privacy policy the ability for a representative to share client data inventory with Securities America is available on affiliation Affiliation is defined as the day the representative has terminated their contract with the former broker dealer and notified Securities America to submit their U4 with FINRA Securities America will work with the representative and staff to format data print and mail client packets to the new representative office No Sharing Under an unfavorable privacy policy the ability for a representative to share client data inventory with Securities America IS NOT possible The representative s office can prepare Securities America paperwork in anticipation of the transition and are left to its own resources and strategies The most common strategies include using a third party resource for mass population or manually preparing paperwork Non Compete Securities America s policy is to a
22. equired for each carrier with whom you currently do business before client accounts can be changed to Securities America The appointment forms can be downloaded from the Insurance Breakdown section of your online licensing kit A link titled Insurance Appointments will take you to the available appointment forms to print and complete Fax to Securities America s insurance licensing department along with a copy of your state insurance license for each state you are requesting appointments Note If you are not reappointed with the insurance carriers under Securities America change of dealers will not be processed Commissions earned may be paid to your previous broker dealer and in most instances they are not retrievable Note Refer to the wealth management section of this guide for information on fixed insurance Associated Person AP Kit Securities America has a process for representatives to grant system access to associated persons The acknowledgement form page 6 of the Associated Person Kit must be signed by all parties and returned within 48 hours of the associated person being added to the system Representatives have 30 days to return the completed AP kit but access will be discontinued if the acknowledgement form is not returned within 48 hours Fingerprints can be submitted electronically by following the fingerprinting instructions Important Considerations Privacy Policy Broker dealers are required to notify cli
23. execute transactions in brokerage accounts A physical file and log is maintained regardless if any extensions have occurred Regulation T extensions carry a 25 charge to the representative Client Files Required Compliance Files Client files must be available for inspection by members of the compliance and supervision departments including all field supervisors Client files must be maintained in your office or electronically in the SA Vault while the account is open and for 6 years after the closure of the client account If physical files are kept in your office a file must be established for each client account registration containing documents required to open and or maintain a client s account Gifts and Other Non Cash Compensation Log Enter all of the following on the quarterly Gift and Non Cash Compensation Log All gifts given to and received from customer representatives All gifts given to and received from from product sponsors All gifts given to prospective clients clients and customer representatives as part of a seminar meeting or event e All business entertainment All marketing allowance reimbursements received from a product sponsor via Securities America s reimbursement process e All expenses incurred or paid on your behalf by a product sponsor as it relates to a training education or due diligence event Representatives must submit a copy of this log to their OSJ Regional Sales Supervis
24. ffiliate with Securities America nc one of the largest independent broker dealers in the country today Our decision to change the broker dealer we work with was a business one that was carefully considered This new arrangement will allow us to provide you with additional services and opportunities In addition our office will greatly benefit from improved technology and operational efficiencies that come with a larger firm We cordially invite you to stop by our office any time on insert date s for an open house We look forward to visiting with you and will have paperwork ready for you to sign to facilitate this change we are making Please understand this change will not affect your investment accounts or your relationship with me and Insert firm name If you are unable to visit us on the days noted please call my office and schedule an appointment for a time and date that works for you value your trust and very much appreciate the confidence you place in me and insert firm We enjoy working with you and look forward to continuing to assist you in pursuing your financial goals and objectives If you have any questions please do not hesitate to give me a call at insert phone or email Sincerely 29 Sample Client Notification Letter 3 Dear lt lt Insert Name am writing to let you know about a new affiliation for our firm that will benefit all of us in significant ways
25. id in advance of the advisor earning those fees What will happen to my trails and commissions while am in transition from one broker dealer to another The answer lies in your contract at the previous broker dealer Your previous firm s policy on how long they continue to pay representatives after their termination date will determine if they will pay you after you leave It is also important to complete the transfer process with Securities America as soon as possible Is there a cost for Firm Element Assigned courses are available in May and must be completed by October 31st The fee is 299 and will be debited against your commission statement What type of training is available for my staff and me Your transition consultant will coordinate training for your office The consultant will work with you on creating the best training curriculum based on your office s needs Whether it is over the phone training webcasts onsite visits or a combination of all three the plan will be customized to meet your needs Securities America also offers the Fast Track Training program which can be used to assist OSJ offices in their training needs for new representatives to their branch or as a refresher for those offices who have recently transitioned This program saves you time and money by training new associates on Securities America s technology operations requirements compliance and more 22 The Fast Track Training program includes a core
26. ients needs From insurance to investing from planning to execution Securities America s wealth management department works continuously to find the most effective and competitive solutions It is important to verify all of the products you have sold in the past are transferrable to Securities America Taking a minute to compile a list of current products utilized in your practice will help the branch office development team or branch manager verify product availability and if necessary possible alternatives or solutions Giving you more product choices to meet the financial needs of your clients is one of our primary goals We frequently assess and re assess the products representatives want to use and modify our offerings as necessary We have a variety of alternative and retirement products to build effective solutions for your clients Fixed Insurance Business Relationships At Securities America we maintain several fixed business relationships to make sure you have the most competitive products available Our internal support staff is able to provide you with rate quotes and product illustrations They can also assist with licensing appointment and your business processing needs Insurance Marketing Organization Partners Securities America has partnered with the following third party insurance marketing organizations The National Benefit Corp TNBC TNBC is one of our oldest IMO relationships Their dedication to service and product
27. iness use Non Brokerage Order Entry NBOE Transactions that are processed directly with the product sponsor are referred to as non brokerage transactions The Non Brokerage Order Entry system allows for review of the transaction without sending originals to the home office The submission process is designed to document the details of the transaction Once completed all paperwork is submitted as a digital file or faxed for review and approval Common direct held business types Mutual Funds e Variable Life and Annuities e Equity Index Annuities e Third party managed money Independent Money Asset Providers IMAP Support Securities America s rep technology support and information services system security groups are ready to assist you with basic technology and data security issues that you may face while using our systems to conduct your day to day business activities Please contact rep technology support at 800 747 6111 option 8 option 1 for assistance Preparing Your Book for the Transition Client paperwork preparation can begin prior to you being effective with Securities America but cannot be provided to clients for signature until you are approved by FINRA and your home state You will be notified once you are effective with Securities America Note It is important the social security number is accurate on new account paperwork If the social security number cannot be verified during the customer identification chec
28. ion Principals on a quarterly basis Maintain a copy of the log in an office file Compensation Documentation Requirements You must maintain compensation records monetary and non monetary for your staff including temporary agencies in your office for a total of three years with the first two years in a readily accessible location The records must include the amount of compensation paid or a description of any non monetary item with an estimated value Correspondence File Representatives will complete a monthly correspondence acknowledgement statement attesting that Securities America s policies and procedures are being adhered to concerning the submission of correspondence attaching copies of incoming and outgoing written correspondence for the time frame specified on the correspondence acknowledgement statement Additionally correspondence includes any communications regarding securities investment advice or customer accounts including written communications with product sponsors account custodians or financial institutions Regardless of the method of how the client or prospect received the correspondence from your branch i e regardless of who sent it the written correspondence with the public must be included with the correspondence for the appropriate representative Representatives who did not have any incoming or outgoing correspondence during the time period referenced on the correspondence acknowledgement statement will
29. ion followed by a quiz The courses need to be completed within 120 days of your effective date with Securities America Compliance will place compensation on hold if these courses are not completed by the deadline Anti Money Laundering Overview e Suitability e Communications and Education OBAs and Gifts Firm Element Courses will be assigned each May and must be completed by the end of October unless satisfied by attending continuing education courses offered during the National Conference Vulnerable Adult Training Representatives securities licensed in the State of Washington must complete the Financial Exploitation of Vulnerable Adults training within 90 days of becoming effective with Securities America Washington State legislation requires all representatives seeking registration in Washington to complete this training Vulnerable Adult Training Alternative Investments Representatives participating representatives OSJs and acting principals who solicit and conduct business in alternative investments will be required to complete the Alternative Investment training in the appropriate course prior to soliciting and submitting new business To request a training course be added to your profile send an email to traindept saionline com Non Traded REIT e 1031 Exchange TIC DST e Fund of Hedge Funds Managed Futures Funds Oil amp Gas Real Estate Tax Credit Real Estate Private Program Business Development Compa
30. irm s ADV Part 2 34 Pershing Brokerage Account Registrations Individual Joint Custodial Account Application Account Transfer Form with client statement dated within 90 days Trust Account Application Trustee Certification of Investment Powers Account Transfer Form with client statement dated within 90 days Transfer on Death Individual Account Application Individual Transfer on Death Account Agreement Account Transfer Form with client statement dated within 90 days Transfer on Death Joint Account Application Joint Transfer on Death Account Agreement Account Transfer Form with client statement dated within 90 days Corporate Account Application W 9 required on Corporation and S Corp registrations Certificate of Corporate Resolution Include Articles of Incorporation if Corporate Seal is not imprinted on form Account Transfer Form with client statement dated within 90 days Corporate Qualified Plan Account Application Fiduciary Certification of Investment Powers Omnibus Account Acknowledgement and Indemnification Agreement Account Transfer Form with client statement dated within 90 days Qualified Account Application Appropriate Adoption Agreement for Roth Traditional Educational SEP or Simple IRA Account Transfer Form with client statement dated within 90 days Popular Optional Brokerage Services CoreStone Account Application Check writing and or Debit Card for N
31. k a signed W 9 will be required from the client Inventory Client Accounts by Registration Develop a plan This is a crucial step in preparing for your transition By taking an inventory of your accounts you can determine how many applications are needed which customers have special considerations and the time it will take to complete the paperwork for your move Remember you may experience some client attrition but this is also a time for you to obtain referrals and generate new business from the clients who make you successful Brokerage Accounts Brokerage accounts can be custodied at National Financial Services LLC NFS or at Pershing LLC 1 Take an inventory of all brokerage accounts and determine which types of accounts and services you use in your practice The key to transferring your brokerage accounts is to get the paperwork to the home office in good order for the transfer process to begin as soon as possible Prepare forms well in advance and have them ready to be sent out with your client notification letter Use an inventory sheet like the one that follows to prepare and discuss these items with your transition consultant Inventory your brokerage accounts Total number of clients Total number of accounts Clients may have multiple brokerage accounts Total number of fee based brokerage accounts Determine if brokerage accounts will have closeout fees If an account does not have sufficient cash to cover the fee it wil
32. kerage Portfolio Brokerage Access Form Check writing and or Debit Card for Non Qualified Accounts Household Relationship Form Combine brokerage statements in one envelope e Supplemental Application for NFS Margin Account Privileges Margin Option Agreement and Approval form Options 33 Application for PIP SWP and EFT Periodic Investment Systematic Withdrawal or Bank link for EFT ACH e IRA Periodic Distribution Establish a recurring IRA distribution IRA One Time Distribution One form required per distribution request IRA Standing Distribution Enter future one time distributions without additional signature Fee Based Brokerage Accounts Additional Documents FAP Financial Advisors Program FAP Fee Schedule Client Investment Policy Profile with FAP Client Ageement Provide to Client Copy of Client Agreement SAA Wrap Fee Brochure Advisor Brochure Supplement Independent RIA Reps provide firm s ADV Part 2 Managed Opportunities Managed Opportunities Investment Strategy Summary Must be first page faxed Managed Opportunities Client Agreement Managed Opportunities Additional Instructions form Optional Provide to Client Investment Strategy Summary Managed Opportunities Wrap Fee Program Brochure Advisor Brochure Supplement Envestnet Form ADV Part 2 Qualified Custodial Agreement and Disclosure Statement from custodian Independent RIA Reps provide f
33. l transfer with a debit balance Estimate the total number of qualified brokerage accounts Total number of qualified accounts Number of clients currently taking IRA distributions Determine the day of the month they receive the distribution Number of clients currently making IRA contributions Determine the day of the month they have the contribution deposited Estimate the number of non qualified brokerage accounts _____ Number of accounts with check writing or use a debit card Number of accounts utilizing an automatic or periodic investment plan PIP Number of accounts utilizing a systematic withdrawal plan SWP Number of accounts utilizing electronic funds transfer EFT Number of accounts with margin privileges Number of accounts with option privileges Think of any special situations Examples include accounts holding non publicly traded stock and alternative investments Basic Form Requirements New account form e Transfer of assets form Copy of a recent brokerage statement best practice e Account services such as check writing IRA distributions etc require additional paperwork to continue these features e Some registrations may require additional forms or documentation to establish the account e Fee based accounts require a fee schedule and client agreement Note It is important to time the transfer of client brokerage accounts to avoid interrupting any scheduled events Direct at Fund No
34. n Brokerage Accounts Accounts held directly with a sponsor company Take an inventory of all non brokerage accounts You will need to know how many different types of accounts your clients have with the various mutual fund variable annuity variable life and alternative investment companies Securities America requires a new account application be completed for each non brokerage account registration Inventory your non brokerage accounts Verify each sponsor company is on Securities America s approved product list Number of non brokerage accounts One new account application is required per registration not per company Number of third party money managers used outside of a brokerage account Verify the money manager is approved for use Basic Form Requirements New account form e Securities America s change of dealer form Certain registrations require additional forms or documentation to establish the account Note A change of dealer form is required per sponsor company for each client registration A non brokerage client new account may include multiple change of dealer forms under the same registration Note Once you are effective with Securities America obtain forms from e Office Advantage to ensure you are using the most current version 18 19 What Steps to Take After Inventory At this point estimate the amount of time you will need to complete forms and determine how you will go about completing the forms to move you
35. ndexed annuity products Alternative Investments Representatives OSJs and acting principals who solicit or supervise business in alternative investments will be required to complete alternative investment training in the appropriate course prior to soliciting and submitting new business Use the Al Insight utility to create a profile review the alternative investment policies and procedures and complete education modules Al Insight can be accessed on e Office under Wealth MGMT and Alternative Investments tab Non Traded REIT e 1031 Exchange Hedge Funds e Managed Futures Oil and Gas Programs Real Estate Tax Credit Programs Real Estate Private Programs Business Development Companies Mutual Funds We offer over 9 000 mutual funds from more than 300 successful and popular providers Our list is constantly evolving to best provide the funds you and your clients want Note Many brokerage firms or financial institutions have proprietary mutual funds that cannot be transferred to another firm These proprietary funds will have to be liquidated by your client before the cash value can transfer Your transition consultant can help determine if the funds held by your client are proprietary Advisory Services Securities America Advisors Inc SAA is a Securities and Exchange Commission Registered Investment Advisory firm which offers investment advisory programs and services to representatives of Securities America Inc SAI
36. ng branch office of another representative The branch office will be identified as a Securities America office by having the required disclosure statement on stationery and business cards e Securities files and records must be kept separately from files related to other business activities and contain the required information A branch office is subject to inspection by the SEC FINRA State and Securities America Technology Accessing Client Information 24 7 As the gateway to Securities America s online web portal e Office Advantage provides instant access to online business processing reporting and product information to help manage your practice Our site is designed to give you access to all of our web based products through one login ID e Office Advantage is available anytime with an internet connection and Microsoft Internet Explorer browser Account Manager CRM Contact Relationship Management Account Manager is a unique browser based application that integrates brokerage business with direct held mutual funds and variable annuities to create a client and prospect data source for dynamically managing your office This service merges the functionality of traditional stand alone applications into one full office solution Account Manager offers contact and relationship management account reporting and online account servicing You havethe ability to track your client phone calls letters and other correspondence an
37. ny Massachusetts Data Protection Law All Securities America branch offices that own license store or maintain personal data about a resident of the State of Massachusetts are subject to Massachusetts State Law 210 CMR 17 00 Standards for the Protection of Personal Information of Residents of the Commonwealth Massachusetts is one of the first states to create a law regarding protection of confidential client information that includes specific requirements for businesses Securities America s representatives are considered a separate business owner from Securities America because of their independent contractor status 14 Pursuant to this law you must develop implement maintain and monitor a comprehensive written information security program applicable to any records containing such personal information Creating an adequate program will also require you to implement certain technological safeguards to protect client information Pursuant to these requirements for technology safeguards all offices subject to Massachusetts State Law 210 CMR 17 00 are required to download install and run the data loss prevention DLP solution provided by Securities America on all computers used to conduct Securities America business e g desktop computers laptop computers notebook computers etc Branch Office When you become a representative of Securities America you will have your own branch office unless you are joining the existi
38. on Qualified Accounts RA Resource Checking Check writing for Qualified Accounts SelectLink Combined Mail Application Combine brokerage statements for a household in one envelope OO Margin Agreement Margin Option Agreement and Approval form Options Periodic Buy Sell form Periodic Investment Systematic Withdrawal IRA Distribution Request form IRA One Time or Periodic Distribution ACH Authorization Agreement Link bank for periodic standing or income distributions Fee Based Brokerage Accounts Additional Documents FAP Financial Advisors Program FAP Fee Schedule Client Investment Policy Profile with FAP Lifeguide Client Agreement Provide to Client Copy of Client Agreement SAA Wrap Fee Brochure Advisor Brochure Supplement Independent RIA Reps provide firm s ADV Part 2 30 Appendix V Technology Minimum CPU Processor Speed 4 GHz or Greater Varies by Operating System Operating System Windows 7 Professional Windows XP Pro Windows Home Editions and w Service Pack Macintosh systems are NOT supported Windows Vista Business Ultimate Browser Microsoft Internet Explorer 8 0 or 9 0 Varies by Operating System Pop up with compatibility mode on blockers can either be disabled or enabled with specific sites always on Other browsers are NOT currently supported i usur and other distributed services Monitor 1024x768 to 1280x1024 resolution 1024x768 with a 19 o
39. on building your unique brand This information is not legal advice and you should consult with your attorney if you have questions regarding establishing and running your business entity Decide on a business name Decide on the legal form of your business and register its name File the appropriate form s with our compliance and supervision departments Choose the domain for your online presence Establishing Your Brand Image Once you have your new company name legally registered approvals from compliance communications review and regional supervision and your online domain reserved it is time to build out the look and feel of your brand Note Be sure to ask about the JumpStart Marketing Kit a free online resource to help you get your new brand up and running quickly and efficiently Decide on a logo typeface and color scheme for your new brand Create materials using your new brand Monitor maintain and adjust Note As with all of your marketing materials including stationery and business caras be sure to have them reviewed and approved by Securities America s compliance communications review department prior to use If you already have your own brand Securities America has a wide variety of brochures newsletters and much more to utilize with your brand image Our marketing department provides a wide array of professional materials and planning guides to help promote your practice to current and prospective clien
40. onsultant can supply the necessary graphic files Advertising Submission Utility AdTrax Securities America s advertising submission technology provides electronic advertising submission review notification and books and records retention AdTrax maintains a virtual record of the submission eliminating the need for physical advertising files Pre effective representatives can access the system under the applications link of the Welcome SA com site Titles and Required Disclosures The following is a guide based on our field compliance manual policies and procedures to highlight the disclosure language requirements on various forms of stationery including business cards letterhead fax cover sheets and email Disclosures should be in at least 8 point font SAI Representative Titles Available Investment Representative Registered Representative Account Executive e Financial Consultant SAA Advisory Titles Available Investment Advisor Agent e Financial Advisor e Financial Planner Investment Advisor Representative Registered Investment Advisor Agent Registered Investment Advisor Representative Titles Available for OSJ Registered Principals must be appropriately licensed and acting in a supervisory capacity Branch Manager Registered Principal SAI Representative Business Card Disclosure Securities offered through Securities America Inc Member FINRA SIPC Name Registered Representative or another SAI title
41. r Appendix Il Sample Stationary Appendix Ill Sample Client Letters Appendix IV Basic Form Requirements Direct at Fund non brokerage accounts National Financial Brokerage Pershing Brokerage Appendix V Technology Minimum System Requirements 10 12 13 14 14 14 14 15 15 15 16 16 16 18 19 20 21 22 23 24 26 27 29 30 31 32 33 34 35 36 38 Welcome to Securities America Securities America s Mission Statement The mission of Securities America is to foster the success and independence of our representatives by delivering extraordinary service professional development support and user friendly customer driven technology thereby providing clients the opportunity to receive quality advice for life Who We Are The Transition Team is your primary contact with the home office during your transition to Securities America A successful transition begins with a great plan We will lead you through the process to assist in executing the most effective and timely move possible We will work with you every step of the way and have created this guide to assist in your transition to Securities America Affiliation Transferring Your Licenses FINRA Registrations The Securities America licensing kit will be delivered in two parts 1 The physical licensing kit is sent to your office via UPS overnight mail 2 The online licensing kit link is sent through a Welcome to Securities America email
42. r book of business You may need to hire some temporary help or enlist the support of your spouse or family member This is the most difficult part Once you have made it past this point your paperwork burden will be diminished Keep in contact with your transition consultant throughout this period Your transition consultant is there to assist you with questions on completing the forms It will save time if you complete them correctly the first time to avoid delays once it reaches the home office Develop a transition plan for your move and choose one of the sample letters found in the appendix of this guide Select one that suits your practice and have it approved as the directions indicate Next decide how you will notify your client will it be by mail open house or will you visit them personally Put a plan together for this step and view it as an opportunity to generate more business Suggested Ways to Prepare Forms Complete forms Prioritize your clients into three groups This method is generally for your largest the best You can ensure clients first that commissions for your biggest producing clients will not be lost A Client Clients that are imperative to your practice B Client Clients who are important but may have smaller accounts or needs to your previous Broker C Client Clients you do not service on a Dealer regular basis Prepare and complete forms for your A clients B clients then C client
43. r larger screen resolution with a 17 monitor Sound System Sound card or integrated audio with Required to participate in web headset microphone or external conferences and training sessions speakers and microphone Internet Connection T 1 ot T3 cable modem or LAN based DSL Broadband Connection Only See Internet important information below regarding Wireless connections Adobe Flash Player current version Microsoft Silverlight current version Printer Color Laser Ink jet quality may result in rejected business and held commissions if not legible Fax Machine or Must support 200 300 dpi resolution See important information below Scanner and must be able to send up to 50 pages at a time Plug ins Account Manager Plug in Adobe Acrobat X Adobe Acrobat Adobe Acrobat Reader versions prior i to 6 02 are not supported Please reference important information below Microsoft NET Framework version 2 Sun Java current version Required for Streetscape and NETX360 Microsoft Java is not supported 3 Required Security Email Encryption Software Email messages with sensitive client information must be encrypted using the Securities America e Office Web Mail service No other encryption services are approved Anti Virus Anti Spyware Software i Pop up blocking must be disabled Refer to the PC Support Center for the most current requirements Refer to the PC Support Center for requirements Whole Disc
44. s Complete forms Create a plan to complete your forms The advantage to this alphabetically alphabetically Complete all forms and method is that clients create a follow up system by the first letter will not slip through the of their last name cracks Suggested Ways to Deliver Forms Direct mail to client with no notification Courtesy call to client followed by direct mail Personal visit with client Open house signing party or client appreciation event Easy to prepare in advance and mail Client is notified and you can reassure them of your move by phone You can use this as a time to update information and possibly generate new business You can get all forms signed immediately no waiting for forms to be returned You will have updated client information to work from and you will be able to generate new business or referrals personally You can get in front of a large number of clients at one time to get the most forms signed and your transition started faster Consider this an opportunity to update client information get referrals and thank them personally for doing business 20 No direct contact with the client They may view your move negatively You will have to wait for forms to be returned by mail and you may have to make a follow up call anyway to get the forms returned You must still wait for forms to be returned by mail Follow up will be longer More time consuming then
45. s America the office of representative name The voicemail message must state that orders for securities transactions cannot be accepted on voicemail and to contact alternative telephone number to place an order Common materials submitted for review include e Business cards e Letterhead e Envelopes Email signature e Client transition letters Newsletters 10 e Website e Telemarketing scripts e Social networking profiles e Seminars and any related seminar materials e White and Yellow Page listings for phone book Building signage inside and outside the office outside the office building and building directory listings Note All stationery and marketing items must be submitted for final approval using the Advertising Review AdTrax system prior to first use Compliance Logs Blotters and Files Compliance and supervision is important in every firm Securities America provides you access to Compliance Policy and Procedures in the compliance section of the e Office home page This is your main source for all compliance and supervision topics Here is some introductory information pertinent to the beginning of a transition Most of the logs and blotters outlined below are electronically managed More detailed information is available in the Compliance Policies and Procedures Daily Sales Blotter The Daily Sales Blotter lists all securities activity buys sells and exchanges brokerage and non brokerage including varia
46. still submit a signed correspondence acknowledgement statement Note It is a best practice to maintain two correspondence files Incoming and Outgoing Customer Complaint File Maintain copies of customer complaints along with any relevant correspondence and documentation associated with the complaint in a separate complaint file All customer complaints written or verbal must be reported to your supervisor immediately Documentation is maintained in the appropriate customer complaint file A series 7 licensed representative must maintain these files General Securities Complaints Options Complaints Municipal Securities Complaints e SAA Advisory Complaints Investment Advisor Representatives Only A series 6 licensed representative must maintain these files General Securities Complaints e SAA Advisory Complaints Investment Advisor Representatives Only Representative File Best Practice Maintain copies of representative agreements and contracts proof of all licenses and designations held insurance appointments signed copy of current U4 etc Independent RIA s include a copy of your signed U4 and State or SEC approval documents 12 13 Compliance Additional Information Compliance New Representative Training New representatives and licensed staff are assigned five courses Anti Money Laundering and 4 New Rep training to complete as part of compliance training Each class is a PowerPoint slide presentat
47. ther dissemination Your cooperation is appreciated Email Disclosures Trading instructions sent via email may not be honored Please contact my office at insert phone number or Securities America Inc at 800 747 6111 for all buy sell orders Please be advised that communications regarding trades in your account are for informational purposes only You should continue to rely on confirmations and statements received from the custodian s of your assets The text of this communication is confidential and use by any person who is not the intended recipient is prohibited Any person who receives this communication in error is requested to immediately destroy the text of this communication without copying or further dissemination Your cooperation is appreciated Answering the Telephone Representatives who share space with another business entity OBA Marketing name must disclose their affiliation with Securities America when answering the phone Representatives may answer a registered branch office telephone in any of the following manners e Securities America Outside Business Activity OBA Marketing Name and Securities America e Securities America representative name Voicemail Message Representative voicemail message may state one of the following e You have reached the office of Securities America e You have reached the office of Outside Business Activity OBA Marketing Name and Securities America e You have reached Securitie
48. ts in your target market Many of the tools are provided free online How to Order Stationery You may order standard Securities America stationery from Leading Edge Printing Login to securities leadingedgeprint com Create an account Use the templates to create business cards letterhead and envelopes Review and save PDF proof of the item Submit proof to Securities America s compliance communications review department for approval oe 2S 6 To include additional information such as insurance license number additional phone numbers bank or credit union disclaimers or other custom information contact Bob Tiger at btiger leadingedgeprint com and request a completed proof before sending it to Securities America for review 7 Once approved finalize your order with Leading Edge by emailing Bob Tiger at btiger leadingedgeprint com with your job tracking s Creating Your Own Stationery Design your own proof Depending on the expense you wish to incur your options range from working with an advertising agency or a local printer Securities America has several customized marketing packages available on view on e Office e Submit proofs for review using AdTrax Once final approval is received from compliance communications review submit the proofs to your local printer for printing of your stationery order f you prefer to use a local printer and want to create the standard Securities America stationery look your transition c
49. usiness Name OBA or Marketing Name To display a tax related professional designation add the following line at the end of the disclosure Tax related services are offered through Outside Business Name Professional designations fax number email address etc are optional for your Securities America stationery For Bank Representatives Include the following disclosure to stationery Not FDIC Insured No Bank Guarantees May Lose Value For Credit Union Representatives Include the following disclosure to stationery Not NCUA Insured No Credit Union Guarantees May Lose Value For California and Arkansas Representatives If your branch is located in the state of California or Arkansas your insurance license number must be printed on your stationery It should appear after your name or title be at least the same size as your address and include Insurance in the identification i e CA Insurance Lic 012536 or AR Insurance Lic 012536 Additional Required Compliance Disclosures The disclosure format you selected to use on stationery is required on your letterhead fax cover sheets and email disclosure along with the additional language below Fax Cover Sheets The text of this communication is confidential and use by any person who is not the intended recipient is prohibited Any person who receives this communication in error is requested to immediately destroy the text of this communication without copying or fur
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