RBC Login | Penson Login | Contact Us | Home

Good Faith Violation ("GFV")

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:

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.

All securities and services are offered through Regal Securities, Inc., Member FINRA / SIPC, a registered broker dealer. Securities products offered are not guaranteed or endorsed by Regal, are not FDIC insured and may lose value. None of the information contained herein should be construed as an offer to buy or sell securities or as a recommendation. Specific recommendations are based on a review of each client’s particular financial circumstances. Online trading has inherent risks due to loss of online services or delays from system performance, risk parameters, market conditions, and erroneous or unavailable market data.