How do I open an account?

Complete the following steps:

1. Complete and submit the Customer Profile Form. (Go to Open an Account.)
2. Securities & Investment Planning Company will mail you a New Account Application and Agreement, along with any additional required documentation and forms.
3. Complete the New Account Application and Agreement and any additional forms your account may require. Return all forms to Securities & Investment Planning Company along with a check to fund your account, made payable to Jefferies & Company, Inc. our clearing agent. Please be aware that under the new Anti- Money Laundering USA Patriot Act of 2001 and NASD Rule 3011 you are required to supply proof of identification. For more details, go to Open an Account.
4. When your completed forms and your check are received, Securities & Investment Planning Company will process your application, issuing you an account number a user login, and an initial PIN (personal identification number).
5. Securities & Investment Planning Company will send you this information, along with instructions on using our web site by e-mail, fax, or regular mail as per your request.

When is payment due for a transaction?

Initial transactions must be covered by funds that are currently in the account. Please contact Securities & Investment Planning Company directly for the rules/policies governing payments for trades for established accounts.

To whom do I make my check payable?

Make your check payable to Jefferies & Company, Inc. As Securities & Investment Planning Company's clearing agent, they hold all the account funds and securities you have with us.

Document the title of your account and your name in the memo area on your check. Please note: Third party checks are not acceptable. Then send your check to:

Then send your check to:
Securities & Investment Planning Company
19 Center Street
Chatham, NJ 07928
Attn: Cashier

Securities & Investment Planning Company will then forward your deposit to the clearing agent that holds your account to ensure proper credit to your account.

How do I wire funds into my account?

Since all of our clients' funds and securities are held by our clearing agent, funds are wired to the general account at Jefferies & Company, Inc.. and subsequently credited to your individual account.

Once your account has been established, you can wire funds into your account. (Note: Third party wires are not accepted.) Please use the following wiring instructions:

BANK OF NEW YORK
ABA #021000018
FOR THE A/C OF: Jefferies & Company, Inc
A/C # 890-000-7001
FBO (ACCOUNT NAME)
A/C# (YOUR ACCOUNT NUMBER)

When are funds available in my account to trade?

Wired funds are available the next day for trading. Check deposits are available on their clearance from your bank. (Please allow up to five business days for checks to clear.) ACAT transfers may take from 10 to 15 days to clear.

What does it mean when I purchase securities on margin?

When you purchase securities on margin, you pay only a portion (usually 50%) of the price of the securities. You "borrow" the balance from your financial institution and they charge a fee for the use of the margin "loan". Please read the following for a complete explanation.

1. No member shall open a margin account, as specified in Regulation T of the Board of Governors of the Federal Reserve System, for or on behalf of a non- institutional customer, unless, prior to or at the time of opening the account, the member has furnished to the customer, individually, in writing or electronically, and in a separate document, the margin disclosure statement specified in this paragraph (a). In addition, any member that permits non-institutional customers either to open accounts on-line or to engage in transactions in securities on-line must post such margin disclosure statement on the member's Web site in a clear and conspicuous manner.

   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.

2. 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.

   The annual disclosure statement required pursuant to this paragraph (b) may be delivered within or as part of other account documentation, and is not required to be provided in a separate document.

3. In lieu of providing the disclosures specified in paragraphs (a) and (b), a member may provide to the customer and, to the extent required under paragraph (a) post on its Web site, an alternative disclosure statement, provided that the alternative disclosures shall be substantially similar to the disclosures specified in paragraphs (a) and (b).
4. For purposes of this Rule, the term "non-institutional customer" means a customer that does not qualify as an "institutional account" under Rule 3110(c)(4).

[Adopted by SR-NASD-00-55 eff. June 4, 2001; amended by SR-NASD-2002-69 eff. July 1, 2002.]
FINRA

What are the funding requirements for a margin transaction?

The requirements are $2,000.00 minimum margin equity or Regulation T requirement of your purchase, whichever is greater; 100% for option transactions.

How does Securities & Investment Planning Company protect my privacy?

PRIVACY STATEMENT
We collect nonpublic personal information about you from the following sources: information from your application or other forms; information about your transactions with us, our affiliates, or others; and information we may receive from a consumer reporting agency. We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law. We restrict access to your personal and account information to those employees and our affiliates who need to know that information to provide products and services to you. We maintain physical, electronic and procedural safeguards to guard your nonpublic personal information.

Is e-mail a secure means to communicate about my account?

Please be aware that e-mail communication is almost never fully secure. While we welcome the convenience of communicating with our clients via e-mail, Securities & Investment Planning Company encourages clients to refrain from using e-mail to convey important, confidential information such as account numbers, passwords, etc.

What constitutes day trading?

Rule 2361. Day-Trading Risk Disclosure Statement

1. 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 disclosure statement specified in this paragraph (a). In addition, any member that is promoting a day-trading strategy, directly or indirectly, must post such disclosure statement on the member's Web site in a clear and conspicuous manner.

   Day-Trading Risk 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 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.

   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 you engage in day trading.

   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.

2. In lieu of providing the disclosure statement specified in paragraph (a), a member that is promoting a day-trading strategy may provide to the customer, individually, in writing or electronically, prior to opening the account, and post on its Web site, an alternative disclosure statement, provided that:
   1. The alternative disclosure statement shall be substantially similar to the disclosure statement specified in paragraph (a); and
   2. The alternative disclosure statement shall be filed with the Association's Advertising Department (Department) for review at least 10 days prior to use (or such shorter period as the Department may allow in particular circumstances) for approval and, if changes are recommended by the Association, shall be withheld from use until any changes specified by the Association have been made or, if expressly disapproved, until the alternative disclosure statement has been refiled for, and has received, Association approval. The member must provide with each filing the anticipated date of first use.
3. (c) For purposes of this rule, the term "day-trading strategy" shall have the meaning provided in Rule 2360(e).
4. (d) For purposes of this Rule, the term "non- institutional customer" means a customer that does not qualify as an "institutional account" under Rule 3110(c)(4).

[Adopted by SR-NASD-99-41 eff. Oct. 16, 2000; amended by SR-NASD-2002-69 eff. July 1, 2002.]
http://www.finra.org
Selected Notices to Members: 00-62, 02-35.