Important Disclosures

Anti-Money Laundering

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. This notice answers some questions about our firm's Customer Identification Program (CIP).

What types of information will you need to provide?

When you open an account, our firm is required to collect information such as the following: your name, address, date of birth, Identification number:

(a) US Citizen: taxpayer identification number (social security number or employee identification number), or (b) Non-US 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.

US Department of the Treasury, Securities and Exchange Commission, FINRA and New York Stock Exchange rules already require you to provide additional information, such as 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?

Our firm may not be able to open an account or carry out transactions for you.

Disclosure of Business Continuity Policy

Regal Securities, Inc., a broker/dealer and member of the FINRA. NASD Rule 3510 requires each member firm to create and maintain a business continuity plan (BCP). Accordingly, Regal has developed a plan to ensure that business continues to run uninterrupted during business emergencies. Click on the link below for a brochure that summarizes Regal's Business Continuity Policy.

Business Continuity Policy Summary - RBC

Business Continuity Policy Summary - HTS

Day Trading Margin Rules

The New York Stock Exchange (NYSE) and Financial Industry Regulatory Authority (FINRA) have filed amendments to NYSE Rule 431 and NASD Rule 2520 with the Securities and Exchange Commission (SEC) which increase margin requirements for active security traders. As a result, all accounts identified as pattern day traders will be required to maintain a minimum of $25,000.00 in equity at all times. Pattern day traders whose equity falls below the $25,000.00 requirement must deposit the funds necessary to meet the equity minimum before normal trading can resume.

Pattern Day Traders

Under the amendments, "pattern day traders" are defined as those customers who day trade (buy and sell the same position within the same trading day) four or more times in five business days. In addition, if Regal knows or has a reasonable basis to believe that a client is a pattern day trader, the customer must be designated as a pattern day trader immediately, instead of delaying such determination for five business days.

Summary of Rule 431:

Day-Trading Risk Disclosure Statement

Except as provided in paragraph (b), no member that is promoting a day-trading strategy, directly or indirectly, shall open an account for or on behalf of a non-institutional customer unless, prior to opening the account, the member has furnished to each customer, individually, in writing or electronically, the following disclosure statement:

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 Advisor" under the Investment Advisors Act of 1940 or as a "Broker" or "Dealer" under the Securities Exchange Act of 1934. Such activities may also trigger state registration requirements.

Good Faith Violation ("GFV") - RBC Correspondent Services

Regal Securities through its clearing agent RBC Correspondent Services, is required to implement policies concerning trading with unsettled funds. Effective immediately, your account can be charged with a Good Faith Violation if you purchase a security in a cash account with unsettled funds. Four (4) GFV's in any twelve (12) month rolling period will result in your account being restricted to “Funds in Advance” of trading for a period of 90 days. If an account trades through a 90-day restriction, any resulting loss in the account will be the responsibility of the client and your account may be coded for "no more business."  Five (5) GFV’s in any twelve (12) month rolling period will result in your account being restricted to liquidating only for 90 days.

Example:

For questions contact Regal at 1-877-488-6534.

Good Faith Violation ("GFV") - Hilltop Securities, Inc.

Regal Securities through its clearing agent Hilltop Securities, Inc. is required to implement policies concerning trading with unsettled funds. Your account can be charged with a Good Faith Violation (GFV) if you sell a security that was purchased with unsettled funds and then sold prior to the settlement of the first sell (see example below). Three (3) GFV's in any twelve (12) month rolling period will result in your account being restricted to liquidating transactions only for 90 days..

Example:

For questions contact Regal at 1-877-488-6534.

Keeping Your Account Secure

Regal Securities takes cyber security seriously by implementing a secure environment and taking steps to protect customer assets, employees and our customers’ personally identifiable information. In order to protect against potential cyber-terrorism and hackers who target financial firms, Regal Securities has policies and procedures ensuring Cyber security, Identity Theft, and General Security Preparedness. Additionally, Regal Securities has a comprehensive Disaster Recovery/ Business Continuity plan, and periodically performs testing of Disaster Recovery & Business Continuity readiness tasks.

While we take numerous steps to help protect the security of your account, there are steps that you, the customer, can take to protect your account as well. To help protect your personal identity and prevent your personal information from being disseminated to unauthorized individuals, always remember to remain vigilant by keeping your personal and financial information secure, and be aware of “Phishing” and fraudulent emails and suspicious websites.

Unsecure Computers and Wireless Networks

Unsecured wireless networks pose a significant risk to computing assets and information. In general, unsecured wireless networks should be avoided and should never be used as a primary networking resource.

Additionally, the following brochures describe the critical steps you can take to safeguard your financial accounts and help prevent identity theft.

Please read "Keeping Your Account Secure - Tips for Protecting Your Financial Information" provided by the Securities Industry and Financial Marketing Association (SIFMA) and the Financial Industry Regulatory Authority (FINRA).

"Phishing" and Other Online Identity Theft Scams: Don't Take the Bait

If you have any questions about how we keep your account information safe, please email us at [email protected].

Margin Disclosure Statement

RBC Correspondent Services, a division of RBC Capital Markets, LLC (“RBC CM”), serves as clearing broker to your brokerage firm. RBC CM 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 RBC CM. Consult your brokerage 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 RBC CM. If you choose to borrow funds from RBC CM, you will open a margin account with RBC CM through your brokerage firm. The securities purchased are RBC CM’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, RBC CM can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held with RBC CM, 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:

SEC Rule 606 Report: Percentages of Total Non-Directed Orders Routed to Venues

Regal Securities has prepared this report pursuant to U.S. Securities and Exchange Commission Rule 606, formerly Rule 11A(c)1-6, requiring all brokerage firms to make publicly available quarterly reports on their order routing practices. The report provides information on the routing of non-directed orders, which are any orders that the customer has not specifically instructed to be routed to a particular venue for execution. 

This information can be viewed at:

RBC: http://www.regalsecurities.com/pdf/2017_01_SEC Rule 606 Report-RBC.pdf

HTS: http://www.regalsecurities.com/pdf/2017_01_SEC Rule 606 Report.pdf

Risks of Extended Hours Trading

The risks of Extended Hours trading include but are not limited to:

Trading may have become as easy as "point and click," but there's still only one way to invest. Investigate before you invest. Be informed. Invest smart.

Privacy Policy

Regal Securities has created this privacy statement in order to demonstrate our firm commitment to customer privacy on the Internet. The following discloses our information gathering and dissemination practices for this web site: www.regalsecurities.com .

Where do we obtain the information?

The information that we have comes directly from you. This includes such information as your name, address and Social Security number that you provided on applications, agreements or other forms. In addition, we maintain records of each of your transactions and holdings processed by us.

We also may obtain information about you, such as your credit history or other facts relating to creditworthiness, from a consumer-reporting agency.

Our site's registration form requires users to give us contact information (like their name and e-mail address). We use customer contact information from the registration form to send the user information about our company. The customer's contact information is also used to contact the visitor when necessary. Users may opt-out of receiving future mailings; see the choice/opt-out section below.

We use your IP address to help diagnose problems with our server, and to administer our Web site.

Regal Securities provides investment brokerage services by means of its own internal operation and those of its clearing firm and other unaffiliated third party providers such as mutual funds and variable product sponsors. Regal Securities acts as an introducing broker to its clearing firm, which in turn processes the transactions and acts as the account custodian. All of the above named parties receive and maintain information about you that is related to and necessary for processing investments in your account.

Confidentiality and Security

This site has security measures in place to protect the loss, misuse and alteration of the information under our control. The Trading Area uses SSL (Secure Socket Layer) technology to provide a secure environment for all transactions. If you do not have an up-to-date browser that supports SSL, you should upgrade today. We restrict access to information about you to those employees and authorized agents who need to know that information in order to provide products or services to you. We maintain physical, electronic and procedural safeguards to maintain the confidentiality of your information.

To whom do we disclose the information?

Regal Securities does not sell your nonpublic personal information. We provide information about current or former clients from the sources described above to parties outside of this firm only as described below:

To other companies as necessary to process your business. For example, we process your mutual fund and variable product transactions through product providers with whom we have dealer-selling agreements. If you have a trading account, the information that we obtained from you is given to the clearing firm for purposes of facilitating securities trading and statement preparation. These parties must limit their use of the information to the purpose for which it was provided.

Where required by law or regulation. Examples include responses to a subpoena, court order or regulatory demand. As authorized by you, you may direct us, for example, to send account statements or other account information to a third party. As otherwise authorized or permitted by law. For example, the law permits us to respond to a request for information about you from a consumer-reporting agency.

Supplementation Information

This site may supplement the information that you provide when submitting an application for an account with information that is received from third parties.

Links

The Regal Web site contains links to other Web sites. Regal is not responsible for the privacy practices or the content of such Web sites.

Who is Covered by the Privacy Policy?

The Privacy Policy applies to consumers who are customers or former customers of Regal. We provide our Privacy Policy to customers when they open a new account and annually thereafter. In the event of a change, a revised Privacy Statement will promptly be posted to our Web site. Any dispute over our Privacy Policy is subject to this notice and our Terms and Conditions, including arbitration of disputes and limitation of damages.

Choice/Opt-Out

Regal Securities provides users the opportunity to opt-out of receiving communications. Regal Securities gives users the following options for removing their information from our database to not receive future communications or to no longer receive our service.

E-mail: [email protected]
Call: 1-800-538-0597

Mail your request to: 
Regal Securities 
950 Milwaukee Ave. Suite 102 
Glenview, IL 60025

Correct/Update

This site gives users the following options for changing and modifying information previously provided.

E-mail: [email protected]
Call: 1-800-538-0597

Mail your request to: 
Regal Securities 
950 Milwaukee Ave. Suite 102 
Glenview, IL 60025

If you have any questions about this privacy statement, the practices of this site, or your dealings with this Web site, you can contact:

Regal Securities 
attn: Compliance Dept.
950 Milwaukee Ave. Suite 101 
Glenview, IL 60025 
[email protected]