Business Continuity Statement
McNicoll, Lewis & Vlak, LLC. (MLV) has established a firm wide business continuity plan to assess and manage the effects of a significant emergency disruption on its business operations in an effort to provide continuity of critical business functions. Such critical business functions include entering of client orders, completing securities transactions and providing clients’ access to their accounts.
Consistent with regulatory requirements, MLV provides this disclosure statement to its clients summarizing the program. Due to the proprietary nature of some information, detailed plans for the program cannot be publicly disseminated.
As part of our plans, MLV has identified the applications that are critical to each of our business divisions. These applications are implemented in separate production and recovery data centers using industry-standard practices to copy data from the production site to the recovery site in real time. In most cases, recovery times will range from nearly instantaneous to approximately four hours. For some business functions, next-day recovery is projected.
The Plan is designed to account for the actions MLV will take in the event of disruptions of varying scope. This includes incidents involving the office building where MLV resides, city-wide or regional events of disruption. It also includes a plan for people loss, where staff members may be unable to work at their normal business location. The Plan has been reasonably designed to allow MLV to continue its business, likely at a reduced capacity, and safeguard the interests of our customers. MLV expects to be able to meet its client obligations within the day.
While MLV’s business continuity plan has been reasonably designed to allow the Firm to operate during emergency incidents of varying scope, such potential incidents are unpredictable. MLV has no control over certain infrastructure such as utilities, communication networks, transportation, and third party providers that BNP Paribas Securities may rely upon during an emergency. Because of the unpredictable and unknown nature of a potential future business disruption, MLV cannot guarantee that our systems will always be available or able to be recovered in the event of a serious emergency disruption. MLV’s business continuity plan is subject to change without notice. If the Plan is modified, an updated version will be posted on the Firm’s website and will be made available to customers upon request. Nothing contained in this document amends or changes any of the terms set forth in any agreements between MLV and any of its customers.
Research Disclaimer Notice
Research reports provided by MLV & Co a registered U.S. broker-dealer, employs appropriate expertise, and MLV believes that it is fair and not misleading. Any research distributed via this website, E-mail, Instant Messaging or other electronic communication is offered as a courtesy only. Research is provided as of its date of publication and there is no representation that it is current as of any other date. We have no obligation to update any of this information. Securities laws and MLV policies may prohibit amendment or modification of research information as of other dates. Information included in research reports is prepared solely by members of our Research Department and may not reflect all information concerning a subject company or security in possession of other persons related to MLV. When you read a research report, you need to read all related disclosure information provided by MLV relating to that report.
MLV & Co accepts no liability for any loss resulting from the use of the material presented in this report, except that this disclaimer of liability does not apply to the extent that such disclaimer maybe prohibited by specific statutes, laws or regulations applicable to MLV. This report is not to be relied upon in substitution for the exercise of independent judgment. MLV may have issued and may in the future issue, other reports that are inconsistent with, and which reach different conclusions than the information presented in this report. Those reports reflect the different assumptions, views, and analytical methods of the analysts who prepared them and MLV is under no obligation to ensure that such other reports are brought to the attention of any recipient of this report.
Investment Protection Principles
MLV & Co LLC has adopted the Investment Protection Principles:
Pursuant to FINRA Rule 2711 the following Investment Protection Principles have been adopted:
- + Sever the link between compensation for analysts and investment banking;
- + Prohibit investment banking input into analyst compensation;
- + Require that upon discontinuation of research coverage of a company, firms will disclose the coverage termination and the rationale for such termination; and
- + Research reports disclose whether the firm has received or is entitled to receive any compensation from a covered company over the past 12 months.
- + The firm has establish a monitoring process to ensure compliance with these principles
Customer Identification Program Notice
MLV & Co – Customer Identification Program Notice
Important Information You Need to Know About Opening A New Account
To help the government fight the funding of terrorism and money laundering activities, federal law requires financial institutions to obtain, verify, and record information that identifies each person who opens an account.
This Notice answers some questions about MLV & Co Customer Identification Program.
What types of information will I need to provide?
When you open an account, MLV is required to collect information such as the following from you:
Date of birth
U.S. Citizen: taxpayer identification number (social security number or employer identification number)
Non-U.S. Citizen: taxpayer identification number, passport number, and country of issuance, alien identification card number, or government-issued identification showing nationality, residence, and a photograph of you.
You may also need to show your driver’s license or other identifying documents.
A corporation, partnership, trust or other legal entity may need to provide other information, such as its principal place of business, local office, employer identification number, certified articles of incorporation, government-issued business license, a partnership agreement, or a trust agreement.
U.S. Department of the Treasury, Securities and Exchange Commission, & The Financial Industry Regulatory Authority (FINRA), rules already require you to provide most of this information. These rules also may require you to provide additional information, such as your net worth, annual income, occupation, employment information, investment experience and objectives, and risk tolerance.
What happens if I don’t provide the information requested or my identity can’t be verified?
MLV may not be able to open an account or carry out transactions for you. If MLV has already opened an account for you, we may have to close it.
We thank you for your patience and hope that you will support the financial industry’s efforts to deny terrorists and money launderers access to America’s financial system.
Order Routing Disclosure
Margin Disclosure Statement
Your brokerage firm is 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 account 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 writing or electronically, 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.