Your Stifel Securities Account. Stifel will open and maintain a Securities Account, established and operated in accordance with Regulation T of the Federal Reserve Board and Financial Industry Regulatory Authority (“FINRA”) Rule 4210, as applicable, the primary purpose of which is to purchase and sell securities. The terms of the Agreement govern the relationship between Stifel and you. The Agreement may not be amended or altered unless approved by the Managing Director of Operations or his or her designee. You agree to promptly review and advise Stifel in writing if any information in the Agreement is now, or later becomes, inaccurate. You understand that Stifel is re- lying on this information in providing account services and it is your responsibility to provide accurate and timely updates, and failure to do so may impact recommendations that are made concerning your investments. All additional agreements and disclosures sent to you by Stifel will supplement this Agreement and be incorporated by reference. By continuing to do business with Stifel, you evidence agreement to the terms and conditions set forth herein. Further, you agree that, if at any time you do not agree with the terms and conditions of the Agreement, you will immediately close your account(s) with Stifel.
Your Stifel Securities Account. If you designate authorized agent(s), you represent and warrant that you: (i) authorize us to accept instructions concerning the Assets from the authorized agent(s); (ii) will, promptly upon any change in the identity of the authorized agent(s), send us a revised list of authorized agent(s) and evidence of the authority for such change; (iii) acknowledge that one or more individuals execut- ing this Agreement for you are authorized agent(s), if applicable; and (iv) agree that, if we determine that authorized agent(s) have provided us conflicting instructions, we may in our sole discretion:
(a) require joint instructions from some or all of the authorized agent(s); (b) choose which instructions to follow and which to dis- regard; or (c) advise each authorized agent of the apparent conflict and/or take no action as to any of these instructions. Unless you otherwise specify to Stifel in writing, you represent and warrant that: (i) you are not an employee benefit plan subject to ERISA, an IRA, or other “plan,” as defined in Section 4975(e)(1) of the Code, a “benefit plan investor,” within the meaning of Section 3(42) of ERISA, or a plan subject to a law similar to the fiduciary duty provisions of ERISA or the prohib- ited transaction rules under Section 4975 of the Code, and (ii) none of your assets are subject to ERISA or the Code.
Your Stifel Securities Account. 5 A. Basic Terms and Conditions of Your Securities Account 5 1. Previous Agreements 5 2. Refusal, Restriction, and Cancellation Provisions 5 3. Liquidation of Collateral 5
Your Stifel Securities Account maintaining and providing to you official records of your current holdings and transactions, including your monthly or quarterly account statements, year-end tax reporting information (Form 1099), and separate periodic statements. Our records may not reflect current information for your Assets held with another cus- todian, and the information provided by the custodian may vary from the information included on your Stifel statements because of different reporting periods or discrepancies. Discrepancies may exist between information we have and information that is maintained by your third-party custodian, including performance information generated by such custodian that may differ from the performance information generated by us or our agents. We will not reconcile your Account information with information main- tained by your third-party custodian. Your Stifel statements may also reflect other assets “not held” at Stifel, in addition to those held by a custodial institution. The value and nature of these investments is generally provided by you. While a value may appear on your statement for fund positions and other securities not held at Stifel, such value will not be included for purposes of determining Combined Asset Value. Stifel does not guarantee the accuracy of the information with respect to the value of these investments as reflected on your statements.
Your Stifel Securities Account. Claims Subject to Arbitration. You, Client (including your principals, agents, beneficiaries, successors, heirs, and assigns), agree that you and Stifel must resolve by bind- ing arbitration all claims or controversies between you and Stifel and/or any of Stifel’s present or former agents, employees, officers, and directors, whether such claims or controversies arose prior, on, or subsequent to the date hereof, concerning or arising from:
(i) any account maintained by you with Stifel, whether held individually by you or jointly with others, in any capacity, including those in which you have a benefi- cial interest;
(ii) any transaction involving Stifel or any predecessor or successor firms by merger, acquisition or other business combination and you, whether or not such transaction occurred in such account or accounts referenced in (i);
(iii) the construction, performance, or breach of this Agreement or any other agreement between you and Stifel or an affiliate; or
(iv) any duty arising from the business of Stifel or other- wise, to the extent consistent with FINRA’s Code of Arbitration Procedure for Customer Disputes or other arbitration rules FINRA adopts (“FINRA’s Arbitration Code”). “FINRA” means the Financial Industry Regu- latory Authority, Inc.
Your Stifel Securities Account. The primary risk in a margin account is that the securities securing the loan might decline in value to the point where the loan, the client’s debit balance, is no longer fully collateralized. You are legally responsible for repayment of the loan in full, re- gardless of what happens to the market value of the securities. In the event the market value of the collateral for your loan declines in value, resulting in a Margin Call or a Maintenance Call (see subparagraphs 2 and 3 below), and you do not make the required payment, the securities in your Account could be sold, subjecting you to a possible loss. FURTHER, BY USING MARGIN, YOU GIVE STIFEL THE RIGHT, AT ITS SOLE DIS- CRETION, AND WITHOUT NOTICE TO YOU, TO LIQUIDATE SECURITIES IN YOUR ACCOUNT(S).
Your Stifel Securities Account. You agree that if monthly interest charges are not paid, such charges are added to your debit balance, and interest will be charged on the new debit balance in future months. The actual interest calculations are performed according to the following formula: No. of Days Adjusted Daily x Interest x in Int. Period = Interest Debit Balance Rate 360 Charge
c. Increase in Margin Interest Rate. To the extent permitted by law, in the event that you do not pay Stifel the debit balance
Your Stifel Securities Account selling the variable annuity to you. The annual mortality and expense charge is equal to a percentage of your account value, typically ranging from 0.90% to 1.80% per year.
Your Stifel Securities Account for fixed income funds and 5.75% for equity funds. For larger investments, discounts known as “breakpoints” (see below) may reduce the sales charge. Once the sales charge has been deducted, the remaining amount is invested in the fund. In addition to front-end sales loads, investors in mutual fund Class A shares will pay ongoing expenses levied by the funds, including 12b-1 fees.
Your Stifel Securities Account include, but are not limited to, the possibility of losses exceed- ing the amounts invested. Accordingly, before trading options, you should understand the strategy in which you are engaging and should read and understand the booklet: “Characteristics and Risks of Standardized Options,” available online at xxx.xxxxxx.xxx: “Important Disclosures,” “Options Disclosure.”
