Good Faith Violation ("GFV")
Regal Securities through its clearing agent Penson Financial Services, Inc. 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:
- On Monday customer sells “A” for $5,000, of a long, settled and fully paid for position.
- On Monday customer buys “B” for $5,000.
- On Monday, Tuesday or Wednesday customer sells “B”, the sale would result in a good faith violation.
For questions contact Regal at 1-877-488-6534.