SEC Rule 606 – The SEC has adopted rules to improve public disclosure of order execution and routing practices. Under Rule 606, Allen & Company is required to make publicly available quarterly reports that, among other things, identify the venues to which customer orders are routed for execution. Allen & Company routes all eligible OTC and Listed orders directly to our Clearing Firm, Wells Fargo Clearing Services, LLC for execution. In addition, Allen & Company is required to disclose to customers, upon written request, the venues to which their individual orders were routed. By making visible the execution quality of the securities markets, the rules are intended to spur more vigorous competition among market participants to provide the best possible prices for investor orders. Current Information
In the event of an internal or external significant business disruption, if telephone service is available, our registered associates will take customer orders or instructions and contact our clearing firm, Wells Fargo Clearing Services, LLC on their behalf. In the event that our offices cannot be reached directly, our clients may contact Wells Fargo Clearing Services, LLC directly at 1-877-496-3223 or the mutual fund company directly using the number provided on the statement.
CUSTOMER IDENTIFICATION PROGRAM
On April 30, 2003, the Department of Treasury, through the Financial Crimes Enforcement Network, and the SEC jointly announced a final rule to implement Section 326 of the PATRIOT Act. Among other things, Section 326 requires ALCO to implement reasonable procedures to verify the identity of any person seeking to open an account, to the extent reasonable and practicable; to maintain records of the information used to verify the person’s identity; and to determine whether the person appears on any lists of known or suspected terrorists or terrorist organizations provided to broker/dealers by any government agency. The procedures were implemented on October 1, 2003.
This new rule also requires that, among other things, ALCO notify their customers, before the account is opened, about the new customer identification requirements. A notice will be placed on our website. Files and evidence will be maintained in both the customer’s file and in compliance.
Statement for website and clients
Customer Identification Program
In an effort to protect you and our country, President Bush signed the USA Patriot Act into law on October 26, 2001.
One section of the USA Patriot Act says all financial institutions must:
Verify the identity of any person seeking to open an account
Maintain record of the information used to verify the person’s identity including name address and other identifying means.
Allen & Company proudly supports all efforts to protect and maintain the security of our customers and our country.
Allen & Company trusts you will understand the necessity of these requirements and help us follow them by presenting picture identification and verifying other information. In some cases, identification will be requested from those who have had accounts with us prior to the adoption of the USA Patriot Act because original documentation was not obtained with the opening of the account. In all cases we pledge to protect your identity and confidentiality.
FINRA PUBLIC DISCLOSURE NOTIFICATION
Wells Fargo Clearing Services, LLC (WFCS) provides centralized cashiering, bookkeeping, execution and other service related to the settlement of securities trades initiated by Allen & Company of Florida, Inc. WFCS clears trades and performs some administrative function as agent for Allen & Company of Florida, Inc. These services relate solely to the processing of transactions. WFCS does not undertake, nor is it required to undertake any supervisory role with respect to the conduct of sales or related operation of Allen & Company of Florida, Inc. who sells securities.
In accordance with The Financial Regulatory Authority (FINRA) Protection Rule, we are providing you with the following information:
The FINRA Public Disclosure Hotline telephone number is (800) 289-9999
The FINRA internet web site address is: www.finra.org
A copy of an investor brochure that includes information concerning the FINRA Disclosure Hotline can be obtained by calling the Public Disclosure Hotline or accessing the FINRA website.
Securities purchased on margin are Wells Fargo Clearing Service’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 Allen & Company at Wells Fargo Clearing Services, LLC 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 requirement 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 Securities and Exchange Commission requires all brokerage firms, including Allen & Company of Florida, Inc., to inform their client’s as to whether such firms receive payment for order flow. Order flow refers to the process by which your orders are executed. Seeking to execute a client’s order into the best available market, a brokerage firm may execute the order as principal, or may route the order to an affiliated or non-affiliated broker-dealer or exchange specialist for execution.
Allen & Company of Florida, Inc., would like its clients to be aware that the firm does not receive any payments for order flow from any broker or dealer, national securities exchange, registered securities association or exchange member to which it routes customer’s orders for execution.
For more information please contact Allen & Company’s Compliance Officer.
Revenue Sharing Disclosure
Revenue Sharing Disclosure
The following disclosure is being provided to you as a consumer of investment products and services. The purpose of the disclosure is to inform you of how Allen & Company of Florida, Inc. and its Financial Advisors may be compensated. This does not take the place of any prospectus or offering memorandum that should be review in making an investment decision.
WHAT FORMS OF COMPENSATION DOES ALLEN & COMPANY RECEIVE?
In the normal course of business, Allen & Company and its Financial Advisors receive compensation and other payments related to the sale of securities and providing investment advisory services. Among the types of revenue and compensation Allen & Company and its Financial Advisors receive are commissions, distribution fees, 12b-1 fees and reimbursement of training, educational, and forms of promotional expenses. In addition to the above compensation, Allen & Company may enter into agreements to receive additional revenue, also known as revenue sharing.
WHAT IS REVENUE SHARING?
Revenue sharing means that Allen & Company accepts money from product sponsors such as mutual fund companies, insurance companies, and real estate investment trust (“REIT”) companies in addition to the sales revenue it earns when a customer purchases one of these products. These revenue sharing fees are frequently referred to due diligence or marketing allowances.
HOW IS THE AMOUNT OF REVENUE DETERMINED?
The amount of revenue Allen & Company receives from each product sponsor is based on the volume of sales Financial Advisors transact with each product sponsor, a percentage of assets held at the product sponsor, or a flat amount negotiated between the product sponsor and Allen & Company.
WHY DO PRODUCT SPONSORS SHARE REVENUE WITH ALLEN & COMPANY?
Revenue sharing is a way for product sponsors to advertise, to educate, and potentially increase sales.
DO FINANCIAL ADVISORS RECEIVE A REWARD OR BONUS FOR SELLING PRODUCTS OF PRODUCT SPONSORS WHO ARE REVENUE SHARING?
No. Allen & Company does not give Financial Advisors a reward or bonus for selling shares or products of the specific product sponsor. Financial Advisors recommend products based on each customer’s needs and objectives. Allen & Company does not permit or allow any form of sales contests based on specific products.
WHO RECEIVES THE ADDITIONAL REVENUE?
We use the additional revenue to support our marketing and training efforts.
HOW DOES ALLEN & COMPANY USE THE ADDITIONAL REVENUE?
We use the additional revenue to support our marketing and training efforts.
WHO CAN I CONTACT SHOULD I HAVE ADDITIONAL QUESTIONS?
If you still have questions, you may contact your Financial Advisor. Updated information about Allen & Company’s revenue sharing and differential cash compensation arrangements may be obtained by going to Allen & Company’s website (Regulatory Disclosure) or by calling your Financial Advisor at 1-800-950-2526.
Securities and cash in client accounts have two sources of protection. Our firm is a member of the Securities Investor Protection Corporation (SIPC). SIPC protects the clients of its member firms against the loss of their securities in the event of the member’s insolvency and liquidation. Each client is insured up to a maximum of $500,000 (including $100,000 for claims for cash). For more information on SIPC coverage, please see the explanatory brochure at www.sipc.org or contact SIPC at (202) 371-8300. In addition, our firm maintains a program of excess protection. Under this program, cash and fully paid securities receive net equity protection not subject to a dollar amount limitation. The additional protection is through Customer Asset Protection Company. SIPC and the additional protection do not insure the quality of investments or protect against losses from fluctuating market value.
Allen & Company of Florida, Inc, member FINRA and SIPC.
Information contained within this site is for informational purposes only. It is general in nature and should not be construed as a solicitation of business or as advice designed to meet the needs and objectives of individual investors.
Each individual investor’s needs, risk tolerances and financial objectives differ significantly. All investment products mentioned within this site will not fit the suitability standards and investment objectives for all investors. It is recommended that investors meet with a qualified financial advisor and discuss which products will best suit their requirements.
This information should not be considered an offer or solicitation to buy or sell any given security. It is not our intention to state or imply, in any manner, that past results and/or profitability is an indication of future performance.
While we consider the sources of the information found within this site to be reliable, accuracy cannot be guaranteed.
Allen & Company of Florida, Inc. will only transact business in states where it is registered.
This website contains links to various third party websites. The content of the linked sites cannot be controlled by nor are they under the immediate supervision of Allen & Company of Florida, Inc. The links do not imply or suggest any association, partnership or endorsement of any kind.