Disclaimers – NatAlliance Securities

Disclaimers

Neither NatAlliance Securities, LLC (“Natalliance”), a member of FINRA and SIPC, and a broker-dealer registered with the SEC nor any of its affiliates, makes any representation or warranty regarding the correctness of any information contained herein, or the appropriateness, for any person, of any transaction. The information contained in this electronic message and any attachments to this message are intended for the exclusive use of the addressee(s) only and may contain confidential or privileged information. Any errant transmission is not intended to waive confidentiality or privilege. No representation is made on its accuracy or completeness of the information contained in this electronic message and any attachments. If you are not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this e-mail and any attachment(s) is strictly prohibited. Please reply to the sender and immediately destroy all copies of this message and any attachments from your system.

BROKERAGE SERVICES

When you invest through a brokerage account, your representative receives a commission for buying or selling securities products. This compensation occurs on a transaction basis. As a result, a brokerage relationship may be best for clients who are seeking a pure buy-and-hold strategy. In addition, through a brokerage relationship, your representative may provide education, research, and information about financial products, but he or she is not obligated to provide ongoing investment advice, which is a duty of an advisor to clients in an advisory relationship. Also, unlike an advisory relationship, you may not provide your advisor with discretion to buy and sell securities for you in a brokerage account; instead, you must approve each transaction prior to execution.

The commissions you pay will depend on the type and nature of the security purchased or sold in your account. Brokerage accounts also will incur certain account fees. For a list of fees charged by RBC Clearing & Custody, our custodian for brokerage accounts and related services, please see the Client Account Agreement Disclosures.

Fixed Income Client Statement Pricing Disclosure

Unlike equities where prices are usually evaluated based on their daily closing prices, bonds generally do not have a uniform closing price, as a majority trade in over-the-counter (OTC) markets or a negotiated market. Additionally, bond prices are affected by many different factors and, consequently, are often derived using pricing models and/or benchmark indices. These factors include but are not limited to; issuer’s credit rating, order size and other features as well as by valuation methods used by independent pricing services.

Third-party resources may provide comparative prices for evaluation purposes. NatAlliance Securities LLC through a third-party pricing vendor supplies these independent daily bond valuations. Typically, pricing services use proprietary pricing models which may or may not be an accurate representation of actual prices. A continually changing market environment presents additional challenges, which may affect the price of bond valuations and, consequently, make statement prices less reliable indications of at what price certain bonds may be trading.

Actual bond prices are determined by what someone is willing to pay – a bid price reflects the price at which a customer can sell. Consequently, an offer or ask price reflects the price at which a customer can buy. The difference between the two prices is referred to as the price spread. When conditions of significant increases in price volatility, the spreads between bids and asks for bonds can increase to wide levels, making bond valuations even less precise. Bond prices reflected on statements are “best-effort estimates” which can be useful for evaluating a portfolio and establishing an allocation mix. However, they should not be interpreted as actual bid or ask prices.

Clients should carefully review their monthly statements and monitor changes in bond prices. However, investment decisions should not be based solely on statement pricing as it may not be indicative of current market prices. Any investor interested in selling bonds prior to maturity should seek assistance from their financial professional. Additionally, when purchasing a bond, clients can evaluate the pricing they received at http://emma.msrb.org/ and http://finramarkets.morningstar.com/BondCenter/Default.jsp or by contacting your financial representative.

MSRB Rule G10 Disclosure

NatAlliance Securities, LLC is registered with the MSRB and Securities and Exchange Commission. The MSRB’s website is http://www.msrb.org. You will find information on the MSRB’s website describing the protections that may be provided by the MSRB’s rules (Information for Municipal Securities Investors and/or Information for Municipal Advisory Clients) and how to file a complaint with an appropriate regulatory authority.

Your Privacy Is Our Policy

NatAlliance Securities, LLC (NAS) is committed to maintaining your personal information in a highly confidential manner. This page describes our Privacy Policy as it applies to how we collect, maintain and protect private, non-public information when you open an account with NAS. Please know that this policy applies to all former, current and new customers.

Why Do We Collect Personal Information

When you apply for and/or open an account with NAS, we collect personal information about you for various purposes. Certain regulatory requirements mandate that information be collected by us so that we may make proper evaluations with respect to your financial needs. Furthermore, the Patriot Act requires that we collect specific information in an effort to fight money-laundering. For more information regarding the Customer Identification Program and the information that we collect, please see the ‘Customer Identification Program’ tab.

How Do We Protect Your Information

When you open an account with NAS, your cash and securities will be held with RBC Clearing & Custody (RBC). Please know that the information obtained by NAS will be maintained in the strictest confidence. Electronic information will be stored in secure databases which are exclusive to certain NAS and RBC personnel and inaccessible to outside parties. The persons with access to your information will be limited to personnel dedicated to servicing your account. To learn about the Privacy Policy of RBC, please click here.

Our Sharing Practices

NAS has never and will not provide your personal and sensitive information to affiliates, subsidiaries and/or non-affiliated third parties unless required by law. We do not wish to reserve the right to disclose, nonpublic personal information to affiliates or non-affiliated third parties, except to non-affiliated parties as authorized by law. Essentially, this means that NAS will treat your private (nonpublic information) in a confidential manner and will not be shared with anyone. “Required by law” may include regulatory investigations which mandate that we provide specific information to investigators for purposes of cooperating with their investigation.

Is Your Information Accurate (For existing customers)?

When you opened your account with NAS, you received a copy of your new account application which contains the information you provided to us. In order to ensure that our customer files are complete and accurate, we invite you to provide us with any updates and/or additions to your personal information.

Business Continuity

NatAlliance Securities, LLC has developed a Business Continuity Plan regarding how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we must remain flexible in our response to actual events. With that in mind, please review the following information regarding our Business Continuity Plan.

Contacting Us

If after a significant business disruption, you cannot contact us as you usually do at 512-609-1700 or via email at compliance@natalliance.com, you should contact our clearing firm, RBC Clearing & Custody., at 800-933-9946 for instructions on how to access your funds and securities, to enter order, or for any another related service or inquiry you may have.

Our Business Continuity Plan

We plan to quickly recover and resume business operations after a significant business disruption and respond by safeguarding our employees and property, making a financial and operational assessment, protecting the firm’s books and records, and allowing our customers to transact business. In short, our business continuity plan is designed to permit our firm to resume operations as quickly as possible given the scope and severity of the significant business disruption.

Our business continuity plan addresses: data backup and recovery; mission critical systems; financial and operational assessments; alternative communications with customers, employees, and regulators; alternate physical location of employees; critical supplier, contractor, bank and counter-party impact; regulatory reporting; and assuring our customers prompt access to their funds and securities if we are unable to continue our business.

Our clearing firm, RBC Clearing & Custody. backs up our important records in a geographically separate area. While every emergency situation poses unique problems based on external factors, such as time of day and the severity of the disruption, we have been advised by our clearing firm that its objective is to restore its own operations and be able to complete existing transactions and accept new transactions and payments within hours. Your orders and requests for funds and securities could be delayed during this period.

Varying Disruptions

Significant business disruptions can vary in their scope, they may impact only our firm, a single building housing our firm, the business district where our firm is located, the city where we are located, or the whole region. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption to only our firm or a building housing our firm, we will transfer our operations to a local site where we can recover and resume business. In a disruption affecting our business district, city, or region, we will transfer our operations to a site outside of the affected area where we can recover and resume business. In either situation, we plan to continue conducting business, transfer operations to our clearing firm if necessary, and notify you through our website www.natalliance.com or our customer emergency number, 512-609-1700, regarding how to contact us. If the significant business disruption is so severe that it prevents us from remaining in business, we will assure our customer’s prompt access to their funds and securities.

For more information – If you have questions about our business continuity planning, you can contact us at compliance@natalliance.com.

RBC Clearing & Custody’s Business Continuity Plan can be found: https://www.rbcclearingandcustody.com/en-us/legal/business-continuity-plan/

Customer Identification Program

Below you will find important information regarding the account opening process at NatAlliance Securities, LLC.

In an effort to assist the government in their fight against money laundering and terrorism within the United States, federal law mandates that all financial institutions obtain, verify and record specific information that identifies each person and/or entity that opens an account.

When opening an account at NatAlliance Securities we are required by law to collect the following information from you:

Your name
Date of birth
Address
Social security number or employer identification number, or; if you are a non-U.S. citizen we will require a taxpayer identification number, passport number, country of issuance, alien identification card number or government-issued identification showing nationality, residence and a photograph of you.
We also require a copy of your driver’s license or passport or any legal document with a photograph of you that has been issued by a state or federal authority.

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.

The U.S. Department of Treasury, Securities and Exchange Commission, FINRA and New York Stock Exchange rules require you to provide this information. These rules may also require you to provide additional information such as your net worth, annual income, occupation, employment information, investment experience and objectives as well as your risk tolerances.

If you refuse to provide the aforementioned information or if your identity can not be verified, we will not open an account and/or conduct transactions on your behalf. Please understand that NatAlliance Securities will take the necessary precautions to assist the financial industry and U.S. government in their fight against terrorism and money laundering to maintain a fair and equitable market place.

Clearing / Order Routing & Execution

NatAlliance maintains a clearing arrangement with RBC Clearing & Custody for clearing fixed income and equity business.

Disclosure of SEC-Required Order Execution Information:

Pursuant to SEC Rule 606, NatAlliance Securities, LLC (NAS) is required to make publicly available a quarterly report with regard to its routing of non-directed orders. These reports also include information about NAS’ relationship with certain market centers to which it routes orders. NAS’ Rule 606 reports can be found at: Rule 606A1 – Held Compliance report. Detailed information about routing and execution of customer’s orders, including the market centers to which customer’s orders were routed, whether such orders were directed or non-directed orders, and the time of the transactions, if any, that resulted from such orders, is available at no cost upon request via telephone to (512) 609-1700.

NAS by default routes held, retail orders to its clearing firm, RBC Clearing & Custody (RBC). RBC makes the routing decisions for those orders. RBC is required to make publicly available a quarterly report with regard to its routing of non-directed orders. This information can be accessed on the internet at: https://www.rbcclearingandcustody.com/en-us/legal/sec-order-handling-disclosure/ or a written copy will be furnished at no cost upon request via telephone to (512) 609-1700.

Pursuant to SEC Rule 607, NatAlliance Securities LLC (NAS) is required to disclose its payment for Order Flow practices. NAS sends certain equity orders to exchanges, electronic communication networks, or broker / dealers during normal business hours and during extended trading sessions. Those market centers do not provide payments to NAS for order flow. NAS does receive rebates and/or receives charges based on providing or taking liquidity, which is a passthrough from various exchanges. In addition, NAS will not and does not execute equity orders as principal. NAS does not receive payments for directing listed options order flow to certain option exchanges. This disclosure only applies to orders directed to NAS by your firm.

Regulation Best Interest Disclosure

Options Disclosures

Extended Trading Hours Disclosure

Pursuant to FINRA Rule 2265, NatAlliance Securities, LLC is providing the following disclosure regarding the general risks of trading during the pre-market session or post-market session (the “extended hours”):