Opening of Accounts. A. At the time of the opening of each Introduced Account, the Introducing Firm shall furnish the Clearing Firm with all financial and personal information concerning such Introduced Accounts as the Clearing Firm may reasonably require. At the time of the opening of Introduced Accounts that are margin accounts, the Introducing Firm shall furnish the Clearing Firm with executed customers' agreements, hypothecation agreements and consents to loans of securities (collectively, the "margin agreement"). The Clearing Firm shall supply the Introducing Firm with "new account" and margin agreement forms regarding margin accounts in sufficient quantities, such forms to be submitted to the Clearing Firm upon their completion by the Introducing Firm, If any Introduced Account may have been opened without the Clearing Firm having previously received the foregoing information or, in the case of a margin account, without the Clearing Firm having previously received properly executed margin agreements, failure of the Clearing Firm to receive such information or margin agreements shall not be deemed to be a waiver of the information requirements set forth herein. Upon the written or oral request of the Clearing Firm, the Introducing Firm shall furnish the Clearing Firm with any other documents and agreements executed by the Introduced Account on forms which shall be supplied by the Clearing Firm in sufficient quantities and which may reasonably be required by the Clearing Firm in connection with the opening, operating or maintaining of Introduced Accounts. The Clearing Firm may, at its election, mail margin agreement or "new account" forms directly to the Introduced Accounts upon notification by the Introducing Firm, and/or require completion of its own margin agreement or "new account" forms and, if required, option account agreements for the Introduced Accounts. The Introducing Firm shall promptly provide the Clearing Firm with basic data and copies of documents relating to each of the Introduced Accounts, including, but not otherwise limited to, copies of records of any receipts of the Introduced Accounts' funds and/or securities received directly by the Introducing Firm, as shall be necessary for the Clearing Firm to discharge its service obligations hereunder. B. At the time of the opening of any agency Introduced Account, the Introducing Firm shall furnish the Clearing Firm with the name of any principal for whom the Introducing Firm is acting as agent, and written evidence of such authority. C. The Introducing Firm shall have the sole and exclusive responsibility for compliance with Rule 405(3) of the Rules and shall specifically approve the opening of any new account before forwarding such account to the Clearing Firm as a potential Introduced Account. The Clearing Firm, in its reasonable business judgment, reserves the right to reject any account which the Introducing Firm may tender to the Clearing Firm as a potential Introduced Account. The Clearing Firm, in its reasonable business judgment, reserves the right to terminate any account previously accepted by it as an Introduced Account. D. Pursuant to written notification received by the Introducing Firm and forwarded to the Clearing Firm, any account of the Introducing Firm may choose to reject the services to be performed by the Clearing Firm pursuant to this Agreement and thus choose not to be serviced as an Introduced Account pursuant hereto. Upon notice from another member organization that an Introduced Account intends to transfer his account thereto, the Clearing Firm shall expedite such transfer and shall have the sole and exclusive responsibility for compliance with Rule 412 of the Rules. E. It shall be the sole and exclusive responsibility of the Introducing Firm to make every reasonable effort to ascertain the essential facts relative to any Introduced Account and any order therefor, in compliance with Rule 405(1) of the Rules, including but not otherwise limited to ascertaining the authority of all orders for Introduced Accounts, and the genuineness of all certificates, papers and signatures provided by each Introduced Account. The Introducing Firm will not provide investment advice to its customers and will not have discretionary authority over its customers' assets. F. The Introducing Firm shall have the sole and exclusive responsibility for the handling and supervisory review of any Introduced Account for an employee or officer of any member organization, self-regulatory organization, bank, trust company, insurance company or other organization engaged in the securities business, and for compliance with Rule 407 of the Rules relating thereto. The Introducing Firm shall furnish the Clearing Firm with such documentation with respect thereto as may be requested by the Clearing Firm, G. The Introducing Firm shall have the sole and exclusive responsibility to ensure that those of its customers who become Introduced Accounts hereunder shall not be minors or subject to those prohibitions existing under the Laws and Regulations generally relating to the incapacity of any Introduced Account or any conflict of interest relating to such Introduced Account. H. The Introducing Firm shall be solely and exclusively responsible for any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses of legal counsel) sustained or incurred by either the Introducing Firm or the Clearing Firm, arising out of or resulting from any orders the Introducing Firm has taken from Introduced Accounts residing or being domiciled in jurisdictions in which the Introducing Firm has not been or is no longer authorized to do business. I. It shall be the sole and exclusive responsibility of the Introducing Firm to comply with any and all prospectus delivery requirements in connection with Introduced Accounts which are option accounts. J. For purposes of the Securities Investors Protection Act and the financial responsibility rules promulgated by the Securities and Exchange Commission, the Introduced Accounts shall be deemed customers of the Clearing Firm. For all other purposes, the responsibilities of the Clearing Firm and the Introducing Firm with respect to the Introduced Accounts shall be as specified herein, including with respect to the Introducing Firms supervisory responsibility specified herein.
Appears in 2 contracts
Sources: Clearing Agreement (Archipelago Holdings L L C), Clearing Agreement (Archipelago Holdings L L C)
Opening of Accounts. A. At the time of the opening of each Introduced Account, the Introducing Firm shall furnish the Clearing Firm with all financial and personal information concerning such Introduced Accounts as the Clearing Firm may reasonably require. At the time of the opening of Introduced Accounts that are margin accounts, the Introducing Firm shall furnish the Clearing Firm with executed customers' agreements, hypothecation agreements and consents to loans of securities (collectively, the "margin agreement"). The Clearing Firm shall supply the Introducing Firm with "new account" and margin agreement forms regarding margin accounts in sufficient quantities, such forms to be submitted to the Clearing Firm upon their completion by the Introducing Firm, . If any Introduced Account may have been opened without the Clearing Firm having previously received the foregoing information or, in the case of a margin account, without the Clearing Firm having previously received properly executed margin agreements, failure of the Clearing Firm to receive such information or margin agreements shall not be deemed to be a waiver of the information requirements set forth herein. Upon the written or oral request of the Clearing Firm, the Introducing Firm shall furnish the Clearing Firm with any other documents and agreements executed by the Introduced Account on forms which shall be supplied by the Clearing Firm in sufficient quantities and which may reasonably be required by the Clearing Firm in connection with the opening, operating or maintaining of Introduced Accounts. The Clearing Firm may, at its election, mail margin agreement or "new account" forms directly to the Introduced Accounts upon notification by the Introducing Firm, and/or require completion of its own margin agreement or "new account" forms and, if required, option account agreements for the Introduced Accounts. The Introducing Firm shall promptly provide the Clearing Firm with basic data and copies of documents relating to each of the Introduced Accounts, including, but not otherwise limited to, copies of records of any receipts of the Introduced Accounts' funds and/or securities received directly by the Introducing Firm, as shall be necessary for the Clearing Firm to discharge its service obligations hereunder.
B. All transactions in any Introduced Account are to be considered cash transactions until such time as the Clearing Firm has received margin agreements, duly and validly executed in respect of such Introduced Account. Nevertheless, it is intended that the Introducing Firm will obtain executed margin agreements within the time periods set forth in the Clearing Firm's procedural manuals. In the event credit is inadvertently extended with respect to such Introduced Accounts, the Introducing Firm shall indemnify and hold the Clearing Firm harmless from and against all loss, liability, damage, cost and expense (including but not otherwise limited to fees and expenses of legal counsel) arising therefrom.
C. At the time of the opening of any agency Introduced Account, the Introducing Firm shall furnish the Clearing Firm with the name of any principal for whom the Introducing Firm is acting as agent, and written evidence of such authority.
C. D. The Introducing Firm shall have the sole and exclusive responsibility for compliance with Rule 405(3) of the Rules and shall specifically approve the opening of any new account before forwarding such account to the Clearing Firm as a potential Introduced Account. The Clearing Firm, in its reasonable business judgment, reserves the right to reject any account which the Introducing Firm may tender to the Clearing Firm as a potential Introduced Account. The Clearing Firm, in its reasonable business judgment, Firm also reserves the right to terminate any account previously accepted by it as an Introduced Account.
D. E. Pursuant to written notification received by the Introducing Firm and forwarded to the Clearing Firm, any account of the Introducing Firm may choose to reject the services to be performed by the Clearing Firm pursuant to this Agreement and thus choose not to be serviced as an Introduced Account pursuant hereto. Upon notice from another member organization that an Introduced Account intends to transfer his account thereto, the Clearing Firm shall expedite such transfer and shall have the sole and exclusive responsibility for compliance with Rule 412 of the Rules.
E. F. It shall be the sole and exclusive responsibility of the Introducing Firm to make every reasonable effort to ascertain the essential facts relative to any Introduced Account and any order therefor, in compliance with Rule 405(1) of the Rules, including but not otherwise limited to ascertaining the authority of all orders for Introduced Accounts, and the genuineness of all certificates, papers and signatures provided by each Introduced Account. Any investment advice furnished to an Introduced Account shall be the sole and exclusive responsibility of the Introducing Firm.
G. The Introducing Firm will shall be solely and exclusively responsible for the handling and supervisory review of any Introduced Accounts over which the Introducing Firm's partners, officers or employees have discretionary authority, as required by Rule 408 of the Rules and any other applicable Laws and Regulations. The Introducing Firm shall furnish the Clearing Firm with such documentation with respect thereto as may be requested by the Clearing Firm. The Introducing Firm hereby agrees to indemnify and hold the Clearing Firm harmless against any loss, liability, damage, cost or expense (including but not provide investment advice otherwise limited to fees and expenses of legal counsel), as incurred, suffered or incurred by the Clearing Firm directly or indirectly as a result of any liabilities or claims arising from the exercise by the Introducing Firm, its customers and will not have partners, officers or employees of discretionary authority over Introduced Accounts. The Introducing Firm hereby warrants that with regard to any orders or instructions given by the Introducing Firm with respect to such discretionary accounts, its customers' assetspartners, officers or employees shall have been fully and properly authorized relative thereto and that the execution of such orders shall not be in violation of the Laws and Regulations. Furthermore, the Introducing Firm hereby agrees to indemnify and hold the Clearing Firm harmless against any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses of legal counsel), as incurred, suffered or incurred by the Clearing Firm directly or indirectly as a result of any breach of the Introducing Firm's said warranty. The Introducing Firm hereby agrees and warrants that it will maintain appropriate blanket brokers bond insurance policies covering any and all acts of its employees, agents and partners adequate to fully protect and indemnify the Clearing Firm against any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses of legal counsel) which the Clearing Firm may suffer or incur, directly or indirectly, as a result of any act of the Introducing Firm's employees, agents or partners.
F. H. The Introducing Firm shall have the sole and exclusive responsibility for the handling and supervisory review of any Introduced Account for an employee or officer of any member organization, self-regulatory organization, bank, trust company, insurance company or other organization engaged in the securities business, and for compliance with Rule 407 of the Rules relating thereto. The Introducing Firm shall furnish the Clearing Firm with such documentation with respect thereto as may be requested by the Clearing Firm,.
G. I. The Introducing Firm shall have the sole and exclusive responsibility to ensure insure that those of its customers who become Introduced Accounts hereunder shall not be minors or subject to those prohibitions existing under the Laws and Regulations generally relating to the incapacity of any Introduced Account or any conflict of interest relating to such Introduced Account.
H. J. The Introducing Firm shall be solely and exclusively responsible for any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses of legal counsel) sustained or incurred by either the Introducing Firm or the Clearing Firm, arising out of or resulting from any orders the Introducing Firm has taken from Introduced Accounts residing or being domiciled in jurisdictions in which the Introducing Firm has not been or is no longer authorized to do business.
I. K. It shall be the sole and exclusive responsibility of the Introducing Firm to comply with any and all prospectus delivery requirements in connection with Introduced Accounts which are option accounts.
J. L. For purposes of the Securities Investors Protection Act and the financial responsibility rules promulgated by the Securities and Exchange Commission, the Introduced Accounts shall be deemed customers of the Clearing Firm. For all other purposes, the responsibilities of the Clearing Firm and the Introducing Firm with respect to the Introduced Accounts shall be as specified herein, including with respect to the Introducing Firms Firm's supervisory responsibility specified herein.
Appears in 1 contract
Opening of Accounts. A. At the time of the opening of each Introduced Account, the Introducing Firm shall furnish the Clearing Firm Schroder with all financial and personal customary information concerning such Introduced Accounts as the Clearing Firm may reasonably requireits customer which Schroder requests. At the time of the opening of an Introduced Accounts that are margin accountsAccount, Schroder shall cause to be delivered to and solicit the return from the customer, Customers' Agreements on Schroder's forms (or assignments, in form satisfactory to Schroder, of existing agreements between the customer and the Introducing Firm) and such other documents as Schroder shall ▇▇▇▇ necessary with respect to the account. Schroder's failure to receive any of the above documents required to be executed and returned shall not be deemed a waiver of the above requirements. Schroder shall also inform the customer of the existence of this Agreement pursuant to Rule 382(c) of the New York Stock Exchange. In addition, on Schroder's request, the Introducing Firm shall furnish the Clearing Firm with executed customers' agreements, hypothecation agreements and consents to loans of securities (collectively, the "margin agreement"). The Clearing Firm shall supply the Introducing Firm with "new account" and margin agreement forms regarding margin accounts in sufficient quantities, such forms to be submitted to the Clearing Firm upon their completion by the Introducing Firm, If any Introduced Account may have been opened without the Clearing Firm having previously received the foregoing information or, in the case of a margin account, without the Clearing Firm having previously received properly executed margin agreements, failure of the Clearing Firm to receive such information or margin agreements shall not be deemed to be a waiver of the information requirements set forth herein. Upon the written or oral request of the Clearing Firm, the Introducing Firm shall furnish the Clearing Firm Schroder with any other documents and documents, letters and/or agreements executed by the Introduced Account on forms which shall be supplied by the Clearing Firm in sufficient quantities and which may be reasonably be required requested by the Clearing Firm Schroder in connection with the opening, operating or maintaining of any Introduced Accounts. The Clearing Firm may, at its election, mail margin agreement or "new account" forms directly to the Introduced Accounts upon notification by the Introducing Firm, and/or require completion of its own margin agreement or "new account" forms and, if required, option account agreements for the Introduced Accounts. Account.
B. The Introducing Firm and Schroder shall promptly provide the Clearing Firm with basic data and copies of documents relating to each of the Introduced Accounts, including, but not otherwise limited to, copies of records of any receipts of the Introduced Accounts' funds and/or securities received directly by the Introducing Firm, as shall be necessary for the Clearing Firm to discharge its service obligations hereunder.
B. At the time of the opening of any agency Introduced Account, the Introducing Firm shall furnish the Clearing Firm with the name of any principal for whom the Introducing Firm is acting as agent, and written evidence of such authority.
C. The Introducing Firm shall have the sole and exclusive responsibility for compliance with Rule 405(3) of the Rules and shall specifically approve the opening of any new account before forwarding such account to the Clearing Firm as a potential Introduced Account. The Clearing Firm, in its reasonable business judgment, reserves the right to reject any account. Schroder shall have the right, in its sole discretion, to reject any account which accepted by the Introducing Firm may tender which is then referred to the Clearing Firm as a potential Introduced Account. The Clearing FirmSchroder, in its reasonable business judgment, reserves and the right to terminate any account previously accepted by it as an Introduced Account.
D. Pursuant to written notification received it. Any such action will be discussed in advance with the Introducing Firm. Any account previously accepted by Schroder may not be terminated by the Introducing Firm and forwarded except by written notice to Lewco Securities Corp., ▇ ▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇, on a form provided by Lewco Securities Corp. in order to permit the Clearing Firm, any account of the Introducing Firm may choose to reject the services to be performed by the Clearing Firm pursuant to this Agreement and thus choose not to be serviced as an Introduced Account pursuant hereto. Upon notice from another member organization that an Introduced Account intends to transfer his account thereto, the Clearing Firm shall expedite such transfer and shall have the sole and exclusive responsibility for compliance with Rule 412 of the Rules.
E. It shall be the sole and exclusive responsibility of the Introducing Firm to make every reasonable effort to ascertain the essential facts relative to any Introduced Account and any order therefor, in compliance with Rule 405(1) of the Rules, including but not otherwise limited to ascertaining the authority closing of all orders for Introduced Accounts, and the genuineness of all certificates, papers and signatures provided by each Introduced Account. The Introducing Firm will not provide investment advice to its customers and will not have discretionary authority over its customers' assetsopen transactions.
F. The Introducing Firm shall have the sole and exclusive responsibility for the handling and supervisory review of any Introduced Account for an employee or officer of any member organization, self-regulatory organization, bank, trust company, insurance company or other organization engaged in the securities business, and for compliance with Rule 407 of the Rules relating thereto. The Introducing Firm shall furnish the Clearing Firm with such documentation with respect thereto as may be requested by the Clearing Firm,
G. The Introducing Firm shall have the sole and exclusive responsibility to ensure that those of its customers who become Introduced Accounts hereunder shall not be minors or subject to those prohibitions existing under the Laws and Regulations generally relating to the incapacity of any Introduced Account or any conflict of interest relating to such Introduced Account.
H. The Introducing Firm shall be solely and exclusively responsible for any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses of legal counsel) sustained or incurred by either the Introducing Firm or the Clearing Firm, arising out of or resulting from any orders the Introducing Firm has taken from Introduced Accounts residing or being domiciled in jurisdictions in which the Introducing Firm has not been or is no longer authorized to do business.
I. It shall be the sole and exclusive responsibility of the Introducing Firm to comply with any and all prospectus delivery requirements in connection with Introduced Accounts which are option accounts.
J. For purposes of the Securities Investors Protection Act and the financial responsibility rules promulgated by the Securities and Exchange Commission, the Introduced Accounts shall be deemed customers of the Clearing Firm. For all other purposes, the responsibilities of the Clearing Firm and the Introducing Firm with respect to the Introduced Accounts shall be as specified herein, including with respect to the Introducing Firms supervisory responsibility specified herein.
Appears in 1 contract
Opening of Accounts. A. (i) At the time of the opening of each Introduced Account, the Introducing Firm Correspondent shall furnish the Clearing Firm CSC with all financial and personal information concerning such Introduced Accounts as the Clearing Firm CSC may reasonably require. At the time of the opening of Introduced Accounts that which are margin accounts, the Introducing Firm Correspondent shall furnish the Clearing Firm CSC with executed customers' agreements, hypothecation agreements and consents to loans of securities (collectively, the "margin agreement"). The Clearing Firm CSC shall supply the Introducing Firm Correspondent with "new account" and margin agreement forms regarding margin accounts in sufficient quantities, such forms to be submitted to the Clearing Firm CSC upon their completion by the Introducing Firm, Correspondent. If any Introduced Account may have been opened without the Clearing Firm CSC having previously received the foregoing information or, in the case of a margin account, without the Clearing Firm having previously received properly executed margin agreementsagreement, failure of the Clearing Firm CSC to receive such information or margin agreements shall not be deemed to be a waiver of the information requirements set forth herein. Upon the written or oral request of the Clearing FirmCSC, the Introducing Firm Correspondent shall furnish the Clearing Firm CSC with any other documents and agreements executed by the Introduced Account on forms which shall be supplied by the Clearing Firm CSC in sufficient quantities and which may reasonably be required by the Clearing Firm CSC in connection with the opening, operating or maintaining of Introduced Accounts. The Clearing Firm CSC may, at its electionoption, mail margin agreement agreements or "new account" forms directly to the Introduced Accounts upon notification by the Introducing FirmCorrespondent, and/or require completion of its own margin agreement or "new account" forms and, if required, option account agreements for the Introduced Accounts. The Introducing Firm Correspondent shall promptly provide the Clearing Firm CSC with basic data and copies of documents relating to each of the Introduced Accounts, including, but not otherwise limited to, copies of records of any receipts of the Introduced Accounts' funds and/or securities received directly by the Introducing FirmCorrespondent, as shall be necessary for the Clearing Firm CSC to discharge its service obligations hereunder.
B. (ii) All transactions in any Introduced Account are to be considered cash transactions until such time as CSC has received margin agreements, duly and validly executed in respect of such Introduced Account. Nevertheless, it is intended that Correspondent will obtain executed margin agreements within the time periods set forth in procedural manuals provided by CSC or any entity affiliated with CSC. In the event credit is inadvertently extended with respect to such Introduced Accounts, Correspondent shall indemnify and hold CSC harmless from and against all loss, liability, damage, cost and expense (including but not otherwise limited to fees and expenses of legal counsel) arising therefrom.
(iii) At the time of the opening of any agency Introduced AccountAccounts, the Introducing Firm Correspondent shall furnish the Clearing Firm CSC with the name of any principal for whom the Introducing Firm Correspondent is acting as agent, and written evidence of such authority.
C. (iv) The Introducing Firm Correspondent shall have the sole and exclusive responsibility for compliance with Rule 405(3) of the Rules and shall specifically approve the opening of any new account before forwarding such account to the Clearing Firm CSC as a potential Introduced Account. The Clearing FirmCSC, in its reasonable business judgmentjudgement, reserves the right to reject any account which the Introducing Firm Correspondent may tender forward to the Clearing Firm CSC as a potential Introduced Account. The Clearing Firm, in its reasonable business judgment, CSC also reserves the right to terminate any account previously accepted by it as an Introduced Account.
D. (v) Pursuant to written notification received by the Introducing Firm Correspondent and forwarded to the Clearing FirmCSC, any account of the Introducing Firm Correspondent may choose to reject the services to be performed by the Clearing Firm CSC pursuant to this Agreement and thus choose not to be serviced as an Introduced Account pursuant hereto. Upon notice from another member organization that an Introduced Account intends to transfer his account thereto, the Clearing Firm CSC shall expedite such transfer and shall have the sole and exclusive responsibility for compliance with Rule 412 of the Rules.
E. (vi) It shall be the sole and exclusive responsibility of the Introducing Firm Correspondent to make every reasonable effort to ascertain the essential facts relative to any Introduced Account and any order therefortherefore, in compliance with Rule 405(1) of the Rules, including but not otherwise limited to ascertaining the authority of all orders for Introduced Accounts, and the genuineness of all certificates, papers and signatures provided by each Introduced Account. The Introducing Firm will not provide Any investment advice furnished to an Introduced Account by the Correspondent shall be the sole and exclusive responsibility of the Correspondent.
(vii) The Correspondent shall be solely and exclusively responsible for the handling and supervisory review of any Introduced Accounts over which the Correspondent's partners, officers or employees have discretionary authority, as required by Rule 408 of the Rules and any other applicable Laws and Regulations. The Correspondent shall furnish CSC with such documentation with respect thereto as may be requested by CSC. The Correspondent hereby agrees to indemnify and hold CSC harmless against any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses of legal counsel) suffered or incurred by CSC directly or indirectly as a result of any liabilities or claims arising from the exercise by the Correspondent, its customers and will not have partners, officers or employees of discretionary authority over Introduced Accounts. The Correspondent hereby warrants that with regard to any orders or instructions given by the Correspondent with respect to such discretionary accounts, its customers' assetspartners, officers or employees shall have been fully and properly authorized relative thereto and that the execution of such orders shall not be in violation of the Laws and Regulations. Furthermore, the Correspondent hereby agrees to indemnify and hold CSC harmless against any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses to legal counsel) suffered or incurred by CSC directly or indirectly as a result of any breach of the Correspondent's said warranty.
F. (viii) The Introducing Firm Correspondent shall have the sole and exclusive responsibility for the handling and supervisory review of any Introduced Account for an employee or officer of any member organization, self-regulatory organization, bank, trust company, insurance company or other organization engaged in the securities business, and for compliance with Rule 407 of the Rules relating thereto. The Introducing Firm Correspondent shall furnish the Clearing Firm CSC with such documentation with respect thereto as may be requested by the Clearing Firm,CSC.
G. (ix) The Introducing Firm Correspondent shall have the sole and exclusive responsibility to ensure insure that those of its customers who become Introduced Accounts hereunder shall not be minors or subject to those prohibitions existing under the Laws and Regulations generally relating to the incapacity of any Introduced Account or any conflict of interest relating to such Introduced Account.
H. (x) The Introducing Firm Correspondent shall be solely and exclusively responsible for any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses of legal counsel) sustained or incurred by either the Introducing Firm Correspondent or the Clearing FirmCSC, arising out of or resulting from any orders the Introducing Firm Correspondent has taken from Introduced Accounts Account residing or being domiciled in jurisdictions in which the Introducing Firm Correspondent has not been or is no longer authorized to do business.
I. (xi) It shall be the sole and exclusive responsibility of the Introducing Firm Correspondent to comply with any the Laws and all prospectus delivery requirements in connection with Regulations relating to each Introduced Accounts Account which are effect listed option accounts.
J. For purposes of the Securities Investors Protection Act and the financial responsibility rules promulgated transactions including, but not limited to, approval by the Securities Correspondent's Registered Options Principal or Senior Registered Options Principal (as applicable), delivery of required Options Disclosure Documents (and Exchange Commission, the Introduced Accounts shall be deemed customers of the Clearing Firm. For all other purposes, the responsibilities of the Clearing Firm Supplements where applicable) and the Introducing Firm with respect to the Introduced Accounts shall be as specified herein, including with respect to the Introducing Firms supervisory responsibility specified hereinoption documentation.
Appears in 1 contract
Sources: Clearing Agreement (Colonial Direct Financial Group Inc)
Opening of Accounts. A. (i) At the time of the opening of each Introduced Account, the Introducing Firm Correspondent shall furnish the Clearing Firm CSC with all financial and personal information concerning such Introduced Accounts as the Clearing Firm CSC may reasonably require. At the time of the opening of Introduced Accounts that which are margin accounts, the Introducing Firm Correspondent shall furnish the Clearing Firm CSC with executed customers' agreements, hypothecation agreements and consents to loans of securities (collectively, the "margin agreement"). The Clearing Firm CSC shall supply the Introducing Firm Correspondent with "new account" and margin agreement forms regarding margin accounts in sufficient quantities, such forms to be submitted to the Clearing Firm CSC upon their completion by the Introducing Firm, Correspondent. If any Introduced Account may have been opened without the Clearing Firm CSC having previously received the foregoing information or, in the case of a margin account, without the Clearing Firm having previously received properly executed margin agreementsagreement, failure of the Clearing Firm CSC to receive such information or margin agreements shall not be deemed to be a waiver of the information requirements set forth herein. Upon the written or oral request of the Clearing FirmCSC, the Introducing Firm Correspondent shall furnish the Clearing Firm CSC with any other documents and agreements executed by the Introduced Account on forms which shall be supplied by the Clearing Firm CSC in sufficient quantities and which may reasonably be required by the Clearing Firm CSC in connection with the opening, operating or maintaining of Introduced Accounts. The Clearing Firm CSC may, at its electionoption, mail margin agreement agreements or "new account" forms directly to the Introduced Accounts upon notification by the Introducing FirmCorrespondent, and/or require completion of its own margin agreement or "new account" forms and, if required, option account agreements for the Introduced Accounts. The Introducing Firm Correspondent shall promptly provide the Clearing Firm CSC with basic data and copies of documents relating to each of the Introduced Accounts, including, but not otherwise limited to, copies of records of any receipts of the Introduced Accounts' funds and/or securities received directly by the Introducing FirmCorrespondent, as shall be necessary for the Clearing Firm CSC to discharge its service obligations hereunder.
B. (ii) All transactions in any Introduced Account are to be considered cash transactions until such time as CSC has received margin agreements, duly and validly executed in respect of such Introduced Account. Nevertheless, it is intended that Correspondent will obtain executed margin agreements within the time periods set forth in procedural manuals provided by CSC or any entity affiliated with CSC. In the event credit is inadvertently extended with respect to such Introduced Accounts, Correspondent shall indemnify and hold CSC harmless from and against all loss, liability, damage, cost and expense (including but not otherwise limited to fees and expenses of legal counsel) arising therefrom.
(iii) At the time of the opening of any agency Introduced Account, the Introducing Firm Correspondent shall furnish the Clearing Firm CSC with the name of any principal other than the account name for whom the Introducing Firm Correspondent is acting as agent, and written evidence of such authority.
C. (iv) The Introducing Firm Correspondent shall have the sole and exclusive responsibility for compliance with Rule 405(3) of the Rules and shall specifically approve the opening of any new account before forwarding such account to the Clearing Firm CSC as a potential Introduced Account. The Clearing FirmCSC, in its reasonable business judgmentjudgement, reserves the right to reject any account which the Introducing Firm Correspondent may tender forward to the Clearing Firm CSC as a potential Introduced Account. The Clearing Firm, in its reasonable business judgment, CSC also reserves the right to terminate any account previously accepted by it as an Introduced Account.
D. (v) Pursuant to written notification received by the Introducing Firm Correspondent and forwarded to the Clearing FirmCSC, any account of the Introducing Firm Correspondent may choose to reject the services to be performed by the Clearing Firm CSC pursuant to this Agreement and thus choose not to be serviced as an Introduced Account pursuant hereto. Upon notice from another member organization that an Introduced Account intends to transfer his account thereto, the Clearing Firm CSC shall expedite such transfer and shall have the sole and exclusive responsibility for compliance with Rule 412 of the Rules.
E. (vi) It shall be the sole and exclusive responsibility of the Introducing Firm Correspondent to make every reasonable effort to ascertain the essential facts relative to any Introduced Account and any order therefortherefore, in compliance with Rule 405(1) of the Rules, including but not otherwise limited to ascertaining the authority of all orders for Introduced Accounts, and the genuineness of all certificates, papers and signatures provided by each Introduced Account. The Introducing Firm will not provide Any investment advice furnished to an Introduced Account by the Correspondent shall be the sole and exclusive responsibility of the Correspondent.
(vii) The Correspondent shall be solely and exclusively responsible for the handling and supervisory review of any Introduced Accounts over which the Correspondent's partners, officers or employees have discretionary authority, as required by Rule 408 of the Rules and any other applicable Laws and Regulations. The Correspondent shall furnish CSC with such documentation with respect thereto as may be requested by CSC. The Correspondent hereby agrees to indemnify and hold CSC harmless against any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses of legal counsel) suffered or incurred by CSC directly or indirectly as a result of any liabilities or claims arising from the exercise by the Correspondent, its customers and will not have partners, officers or employees of discretionary authority over Introduced Accounts. The Correspondent hereby warrants that with regard to any orders or instructions given by the Correspondent with respect to such discretionary accounts, its customers' assetspartners, officers or employees shall have been fully and properly authorized relative thereto and that the execution of such orders shall not be in violation of the Laws and Regulations. Furthermore, the Correspondent hereby agrees to indemnify and hold CSC harmless against any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses to legal counsel) suffered or incurred by CSC directly or indirectly as a result of any breach of the Correspondent's said warranty.
F. (viii) The Introducing Firm Correspondent shall have the sole and exclusive responsibility for the handling and supervisory review of any Introduced Account for an employee or officer of any member organization, self-regulatory organization, bank, trust company, insurance company or other organization engaged in the securities business, and for compliance with Rule 407 of the Rules relating thereto. The Introducing Firm Correspondent shall furnish the Clearing Firm CSC with such documentation with respect thereto as may be requested by the Clearing Firm,CSC.
G. (ix) The Introducing Firm Correspondent shall have the sole and exclusive responsibility to ensure insure that those of its customers who become Introduced Accounts hereunder shall not be minors or subject to those prohibitions existing under the Laws and Regulations generally relating to the incapacity of any Introduced Account or any conflict of interest relating to such Introduced Account.
H. (x) The Introducing Firm Correspondent shall be solely and exclusively responsible for any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses of legal counsel) sustained or incurred by either the Introducing Firm Correspondent or the Clearing FirmCSC, arising out of or resulting from any orders the Introducing Firm Correspondent has taken from Introduced Accounts Account residing or being domiciled in jurisdictions in which the Introducing Firm Correspondent has not been or is no longer authorized to do business.
I. (xi) It shall be the sole and exclusive responsibility of the Introducing Firm Correspondent to comply with any the Laws and all prospectus delivery requirements in connection with Regulations relating to each Introduced Accounts Account which are effect listed option accounts.
J. For purposes of the Securities Investors Protection Act and the financial responsibility rules promulgated transactions including, but not limited to, approval by the Securities Correspondent's Registered Options Principal or Senior Registered Options Principal (as applicable), delivery of required Options Disclosure Documents (and Exchange Commission, the Introduced Accounts shall be deemed customers of the Clearing Firm. For all other purposes, the responsibilities of the Clearing Firm Supplements where applicable) and the Introducing Firm with respect to the Introduced Accounts shall be as specified herein, including with respect to the Introducing Firms supervisory responsibility specified hereinoption documentation.
Appears in 1 contract
Opening of Accounts. A. At the time of the opening of each Introduced Account, the Introducing Firm shall furnish the Clearing Firm Schroder with all financial and personal customary information concerning such Introduced Accounts as the Clearing Firm may reasonably requireits customer which Schroder requests. At the time of the opening of an Introduced Accounts that are margin accountsAccount. Schroder shall cause to be delivered to and solicit the return from the customer, Customers' Agreements on Schroder's forms (or assignments, inform satisfactory to Schroder, of existing agreements between the customer and the Introducing Firm) and such other documents as Schroder shall ▇▇▇▇ necessary with respect to the account- Schroder's failure to receive any of the above documents required to be executed and returned shall not be deemed a waiver of the above requirements. Schroder shall also inform the customer of the existence of this Agreement pursuant to Rule 382(c) of the New York Stock Exchange. In addition, on Schroder's request, the Introducing Firm shall furnish the Clearing Firm with executed customers' agreements, hypothecation agreements and consents to loans of securities (collectively, the "margin agreement"). The Clearing Firm shall supply the Introducing Firm with "new account" and margin agreement forms regarding margin accounts in sufficient quantities, such forms to be submitted to the Clearing Firm upon their completion by the Introducing Firm, If any Introduced Account may have been opened without the Clearing Firm having previously received the foregoing information or, in the case of a margin account, without the Clearing Firm having previously received properly executed margin agreements, failure of the Clearing Firm to receive such information or margin agreements shall not be deemed to be a waiver of the information requirements set forth herein. Upon the written or oral request of the Clearing Firm, the Introducing Firm shall furnish the Clearing Firm Schroder with any other documents and documents, letters and/or agreements executed by the Introduced Account on forms which shall be supplied by the Clearing Firm in sufficient quantities and which may be reasonably be required requested by the Clearing Firm Schroder in connection with the opening, operating or maintaining of any Introduced Accounts. The Clearing Firm may, at its election, mail margin agreement or "new account" forms directly to the Introduced Accounts upon notification by the Introducing Firm, and/or require completion of its own margin agreement or "new account" forms and, if required, option account agreements for the Introduced Accounts. Account.
B. The Introducing Firm and Schroder shall promptly provide the Clearing Firm with basic data and copies of documents relating to each of the Introduced Accounts, including, but not otherwise limited to, copies of records of any receipts of the Introduced Accounts' funds and/or securities received directly by the Introducing Firm, as shall be necessary for the Clearing Firm to discharge its service obligations hereunder.
B. At the time of the opening of any agency Introduced Account, the Introducing Firm shall furnish the Clearing Firm with the name of any principal for whom the Introducing Firm is acting as agent, and written evidence of such authority.
C. The Introducing Firm shall have the sole and exclusive responsibility for compliance with Rule 405(3) of the Rules and shall specifically approve the opening of any new account before forwarding such account to the Clearing Firm as a potential Introduced Account. The Clearing Firm, in its reasonable business judgment, reserves the right to reject any account, Schroder shall have the right, in its sole discretion, to reject any account which accepted by the Introducing Firm may tender which is then referred to the Clearing Firm as a potential Introduced Account. The Clearing FirmSchroder, in its reasonable business judgment, reserves and the right to terminate any account previously accepted by it as an Introduced Account.
D. Pursuant to written notification received it. Any such action will be discussed in advance with the Introducing Firm. Any account previously accepted by Schroder may not be terminated by the Introducing Firm and forwarded except by written notice to Lewco Securities Corp., ▇ ▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇, on a form provided by Lewco Securities Corp. in order to permit the Clearing Firm, any account of the Introducing Firm may choose to reject the services to be performed by the Clearing Firm pursuant to this Agreement and thus choose not to be serviced as an Introduced Account pursuant hereto. Upon notice from another member organization that an Introduced Account intends to transfer his account thereto, the Clearing Firm shall expedite such transfer and shall have the sole and exclusive responsibility for compliance with Rule 412 of the Rules.
E. It shall be the sole and exclusive responsibility of the Introducing Firm to make every reasonable effort to ascertain the essential facts relative to any Introduced Account and any order therefor, in compliance with Rule 405(1) of the Rules, including but not otherwise limited to ascertaining the authority closing of all orders for Introduced Accounts, and the genuineness of all certificates, papers and signatures provided by each Introduced Account. The Introducing Firm will not provide investment advice to its customers and will not have discretionary authority over its customers' assetsopen transactions.
F. The Introducing Firm shall have the sole and exclusive responsibility for the handling and supervisory review of any Introduced Account for an employee or officer of any member organization, self-regulatory organization, bank, trust company, insurance company or other organization engaged in the securities business, and for compliance with Rule 407 of the Rules relating thereto. The Introducing Firm shall furnish the Clearing Firm with such documentation with respect thereto as may be requested by the Clearing Firm,
G. The Introducing Firm shall have the sole and exclusive responsibility to ensure that those of its customers who become Introduced Accounts hereunder shall not be minors or subject to those prohibitions existing under the Laws and Regulations generally relating to the incapacity of any Introduced Account or any conflict of interest relating to such Introduced Account.
H. The Introducing Firm shall be solely and exclusively responsible for any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses of legal counsel) sustained or incurred by either the Introducing Firm or the Clearing Firm, arising out of or resulting from any orders the Introducing Firm has taken from Introduced Accounts residing or being domiciled in jurisdictions in which the Introducing Firm has not been or is no longer authorized to do business.
I. It shall be the sole and exclusive responsibility of the Introducing Firm to comply with any and all prospectus delivery requirements in connection with Introduced Accounts which are option accounts.
J. For purposes of the Securities Investors Protection Act and the financial responsibility rules promulgated by the Securities and Exchange Commission, the Introduced Accounts shall be deemed customers of the Clearing Firm. For all other purposes, the responsibilities of the Clearing Firm and the Introducing Firm with respect to the Introduced Accounts shall be as specified herein, including with respect to the Introducing Firms supervisory responsibility specified herein.
Appears in 1 contract
Opening of Accounts. A. (i) At the time of the opening of each Introduced Account, the Introducing Firm Correspondent shall furnish the Clearing Firm CSC with all financial and personal information concerning such Introduced Accounts as the Clearing Firm CSC may reasonably require. At the time of the opening of any Introduced Accounts that which are margin accounts, the Introducing Firm Correspondent shall furnish the Clearing Firm CSC with executed customers' agreements, hypothecation agreements and consents to loans of securities (collectively, the "margin agreement"). The Clearing Firm , CSC shall supply the Introducing Firm Correspondent with "new account" and margin agreement forms regarding margin accounts in sufficient quantities, such forms to be submitted to the Clearing Firm CSC upon their completion by Tejas Securities Group -- Agreement the Introducing Firm, Correspondent. If any Introduced Account may have been opened without the Clearing Firm CSC having previously received the foregoing information or, in the case of a margin account, without the Clearing Firm having previously received properly executed margin agreementsagreement, failure of the Clearing Firm CSC to receive such information or margin agreements shall not be deemed to be a waiver of the information requirements set forth herein. Upon the written or oral request of the Clearing FirmCSC, the Introducing Firm Correspondent shall furnish the Clearing Firm CSC with any other documents and agreements executed by the Introduced Account on forms which shall be supplied by the Clearing Firm CSC in sufficient quantities and which may reasonably be required by the Clearing Firm CSC in connection with the opening, operating or maintaining of any Introduced AccountsAccount. The Clearing Firm CSC may, at its electionoption, mail margin agreement or agreements, option agreements, "new account" forms or any other form at its discretion directly to the Introduced Accounts upon notification by of the Introducing FirmCorrespondent, and/or require completion of its own said margin agreement or agreements, "new account" forms and/or other forms, and, if required, option account agreements for the Introduced Accounts. The Introducing Firm Correspondent shall promptly provide the Clearing Firm CSC with basic data and copies of documents relating to each of the Introduced Accounts, including, but not otherwise limited to, copies of records of any receipts of the Introduced Accounts' funds and/or securities received directly by the Introducing FirmCorrespondent, as shall be necessary for the Clearing Firm CSC to discharge its service obligations hereunder.
B. (ii) All transactions in any Introduced Account are to be considered cash transactions until such time as CSC has received margin agreements, duly and validly executed in respect of such Introduced Account. Nevertheless, it is intended that Correspondent will obtain executed margin agreements within the time periods set forth in procedural manuals provided by CSC or any entity affiliated with CSC. In the event credit is inadvertently extended with respect to such Introduced Accounts, Correspondent shall indemnify and hold CSC harmless from and against all loss, liability, damage, cost and expense (including but not otherwise limited to reasonable fees and expenses of legal counsel) arising therefrom.
(iii) At the time of the opening of any agency Introduced Account, the Introducing Firm Correspondent shall furnish the Clearing Firm CSC with the name of any principal if other than the account name, for whom the Introducing Firm Correspondent is acting as agent, and written evidence of such authority.
C. (iv) The Introducing Firm Correspondent shall have the sole and exclusive responsibility for compliance with NYSE Rule 405(3) of the Rules and/or NASD Rule 3110 (c) and shall specifically approve the opening of any new account before forwarding such account to the Clearing Firm CSC as a potential Introduced Account. The Clearing FirmCSC, in its reasonable business judgmentjudgement, reserves the right to reject any account which the Introducing Firm Correspondent may tender forward to the Clearing Firm CSC as a potential Introduced Account. The Clearing Firm, in its reasonable business judgment, CSC also reserves the right to terminate any account previously 6 Tejas Securities Group -- Agreement accepted by it as an Introduced Account. By mutual agreement, CSC may open institutional accounts on behalf of Correspondents, if said institution deals directly with CSC or any affiliated organization.
D. (v) Pursuant to written notification received by the Introducing Firm Correspondent and forwarded to the Clearing FirmCSC, any account of the Introducing Firm Correspondent may choose to reject the services to be performed by the Clearing Firm CSC pursuant to this Agreement and thus choose not to be serviced as an Introduced Account pursuant hereto. Upon notice from another member organization that an Introduced Account intends to transfer his account thereto, the Clearing Firm CSC shall expedite such transfer and shall have the sole and exclusive responsibility for compliance with NYSE Rule 412 of the Rulesand/or NASD Rule 11870.
E. (vi) It shall be the sole and exclusive responsibility of the Introducing Firm Correspondent to make every reasonable effort to ascertain the essential facts relative to any Introduced Account and any order therefortherefore, in compliance with NYSE Rule 405(1) and/or NASD Rules 2310 and 3110(c)(2), of the Rules, including but not otherwise limited to ascertaining the authority of all orders for Introduced Accounts, and the genuineness of all certificates, papers and signatures provided by each Introduced Account. The Introducing Firm will not provide Any investment advice to its customers and will not have discretionary authority over its customers' assets.
F. The Introducing Firm include selection of a qualified money manager furnished to an Introduced Account by the Correspondent shall have be the sole and exclusive responsibility of the Correspondent.
(vii) The Correspondent shall be solely and exclusively responsible for the handling and supervisory review of any Introduced Account for an employee Accounts over which the Correspondent's partners, officers or officer of employees have discretionary authority, as required by NYSE Rule 408 and/or NASD Rules 2510 and 3110 (c)(3) and any member organization, self-regulatory organization, bank, trust company, insurance company or other organization engaged in the securities business, applicable Laws and for compliance with Rule 407 of the Rules relating theretoRegulations. The Introducing Firm Correspondent shall furnish the Clearing Firm CSC with such documentation with respect thereto as may be requested by the Clearing Firm,
G. CSC. The Introducing Firm shall have the sole Correspondent hereby agrees to indemnify and exclusive responsibility to ensure that those of its customers who become Introduced Accounts hereunder shall not be minors or subject to those prohibitions existing under the Laws and Regulations generally relating to the incapacity of any Introduced Account or any conflict of interest relating to such Introduced Account.
H. The Introducing Firm shall be solely and exclusively responsible for hold CSC harmless against any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses of legal counsel) sustained suffered or incurred by either CSC directly or indirectly as a result of any liabilities or claims arising from the Introducing Firm exercise by the Correspondent, its partners, officers or the Clearing Firm, arising out employees of or resulting from discretionary authority over Introduced Accounts. The Correspondent hereby warrants that with regard to any orders the Introducing Firm has taken from Introduced Accounts residing or being domiciled in jurisdictions in which the Introducing Firm has not been or is no longer authorized to do business.
I. It shall be the sole and exclusive responsibility of the Introducing Firm to comply with any and all prospectus delivery requirements in connection with Introduced Accounts which are option accounts.
J. For purposes of the Securities Investors Protection Act and the financial responsibility rules promulgated instructions given by the Securities and Exchange Commission, the Introduced Accounts shall be deemed customers of the Clearing Firm. For all other purposes, the responsibilities of the Clearing Firm and the Introducing Firm Correspondent with respect to such discretionary accounts, its partners, officers or employees shall have been fully and properly authorized relative thereto and that the Introduced Accounts execution of such orders shall not be as specified hereinin violation of the Laws and Regulations. Furthermore, the Correspondent hereby agrees to indemnify and hold CSC harmless against any loss, liability, damage, cost or expense (including with respect but not otherwise limited to the Introducing Firms supervisory responsibility specified herein.reasonable fees and expenses of legal counsel)
Appears in 1 contract
Opening of Accounts. A. At ▇. ▇▇ the time of the opening of each Introduced Account, the Introducing Firm shall furnish the Clearing Firm with all financial and personal information concerning such Introduced Accounts as the Clearing Firm may reasonably require. At the time of the opening of Introduced Accounts that are margin accounts, the Introducing Firm shall furnish the Clearing Firm with executed customers' agreements, hypothecation agreements and consents to loans of securities (collectively, the "margin agreement"). The Clearing Firm shall supply the Introducing Firm with "new account" and margin agreement forms regarding margin accounts in sufficient quantities, such forms to be submitted to the Clearing Firm upon their completion by the Introducing Firm, . If any Introduced Account may have been opened without the Clearing Firm having previously received the foregoing information or, in the case of a margin account, without the Clearing Firm having previously received properly executed margin agreements, failure of the Clearing Firm to receive such information or margin agreements shall not be deemed to be a waiver of the information requirements set forth herein. Upon the written or oral request of the Clearing Firm, the Introducing Firm shall furnish the Clearing Firm with any other documents and agreements executed by the Introduced Account on forms which shall be supplied by the Clearing Firm in sufficient quantities and which may reasonably be required by the Clearing Firm in connection with the opening, operating or maintaining of Introduced Accounts. The Clearing Firm may, at its election, mail margin agreement or "new account" forms directly to the Introduced Accounts upon notification by the Introducing Firm, and/or require completion of its own margin agreement or "new account" forms and, if required, option account agreements for the Introduced Accounts. The Introducing Firm shall promptly provide the Clearing Firm with basic data and copies of documents relating to each of the Introduced Accounts, including, but not otherwise limited to, copies of records of any receipts of the Introduced Accounts' funds and/or securities received directly by the Introducing Firm, as shall be necessary for the Clearing Firm to discharge its service obligations hereunder.
B. At ▇. ▇▇ the time of the opening of any agency Introduced Account, the Introducing Firm shall furnish the Clearing Firm with the name of any principal for whom the Introducing Firm is acting as agent, and written evidence of such authority.
C. Within 10 days after the signing of the Agreement, the Introducing Firm will provide notice to the Clearing Firm of the designation of an anti-money laundering compliance officer as discussed more fully in paragraph 9(i)(d) of Article XII(A) below, and where required, to the appropriate regulatory authority.
D. At or prior to the time of the opening of each Introduced Account, the Introducing Firm will obtain sufficient information from its customer to satisfy itself that the customer is the individual or entity it says it is, that its funds are legitimate, and that the Introduced Account is not established or maintained for a foreign "shell bank," as defined by the Bank Secrecy Act, as amended by the USA PATRIOT Act, and that, if it is a foreign bank, it has taken reasonable steps to ensure that the Introduced Account is not used to indirectly service foreign shell banks.
E. At the time of the opening of any Introduced Account, the Introducing Firm will obtain a copy of the passport of any foreign individual opening the Introduced Account.
▇. ▇▇ the time of the opening of any Introduced Account, the Introducing Firm will obtain sufficient information from its customer to satisfy itself opening the account would not violate the provisions of any Laws and Regulations.
G. The Introducing Firm shall have the sole and exclusive responsibility for compliance with Rule 405(3) of the Rules and shall specifically approve the opening of any new account before forwarding such account to the Clearing Firm as a potential Introduced Account. The Clearing Firm, in its reasonable business judgment, reserves the right to reject any account which the Introducing Firm may tender to the Clearing Firm as a potential Introduced Account, even if the account has already been processed by the Introducing Firm. The Clearing Firm, in its reasonable business judgment, reserves the right to terminate any account previously accepted by it as an Introduced Account.
D. H. Pursuant to written notification received by the Introducing Firm and forwarded to the Clearing Firm, any account of the Introducing Firm may choose to reject the services to be performed by the Clearing Firm pursuant to this Agreement and thus choose not to be serviced as an Introduced Account pursuant hereto. Upon notice from another member organization that an Introduced Account intends to transfer his account thereto, the Clearing Firm shall expedite such transfer and shall have the sole and exclusive responsibility for compliance with NYSE Rule 412 of the Rules412.
E. It ▇. ▇▇ shall be the sole and exclusive responsibility of the Introducing Firm to make every reasonable effort to ascertain the essential facts relative to any to:
1. Any Introduced Account and any order therefor, in compliance with Rule 405(1) of the Rules, including but not otherwise limited to ascertaining the authority of all orders for Introduced Accounts, and the genuineness of all certificates, papers and signatures provided by each Introduced Account, and
2. The Introducing Firm will not provide investment advice Any customer identification and verification requirements for determining the Introduced Account's identity as required by the Laws and Regulations, including the USA PATRIOT Act and its implementing regulations and all similar Laws and Regulations, including all rules and regulations relating to its customers your anti-money laundering and will not have discretionary authority over its customers' assetsOFAC reporting obligations in paragraph 9 of Article XII(A), as set forth below.
F. J. The Introducing Firm shall have the sole and exclusive responsibility for the handling and supervisory review of any Introduced Account for an employee or officer of any member organization, self-regulatory organization, bank, trust company, insurance company or other organization engaged in the securities business, and for compliance with NYSE Rule 407 of the Rules relating thereto407. The Introducing Firm shall furnish the Clearing Firm with such documentation with respect thereto as may be requested by the Clearing Firm,.
G. K. The Introducing Firm shall have the sole and exclusive responsibility to ensure that those of its customers who become Introduced Accounts hereunder shall not be minors or subject to those prohibitions existing under the Laws and Regulations generally relating to the incapacity of any Introduced Account or any conflict of interest relating to such Introduced Account.
H. L. The Introducing Firm shall be solely and exclusively responsible for any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses of legal counsel) sustained or incurred by either the Introducing Firm or the Clearing Firm, arising out of or resulting from any orders the Introducing Firm has taken from Introduced Accounts residing or being domiciled in jurisdictions in which the Introducing Firm has not been or is no longer authorized to do business.
I. It ▇. ▇▇ shall be the sole and exclusive responsibility of the Introducing Firm to comply with any and all prospectus delivery requirements in connection with Introduced Accounts which are option accounts.
J. N. For purposes of the Securities Investors Investor Protection Act and the financial responsibility rules promulgated by the Securities and Exchange CommissionSEC, the Introduced Accounts shall be deemed customers of the Clearing Firm. For all other purposes, the responsibilities of the Clearing Firm and the Introducing Firm with respect to the Introduced Accounts shall be as specified herein, including with respect to the Introducing Firms Firm's supervisory responsibility specified herein.
Appears in 1 contract
Sources: Clearing Agreement
Opening of Accounts. A. (i) At the time of the opening of each Introduced Account, the Introducing Firm Correspondent shall furnish the Clearing Firm CSC with all financial and personal information concerning such Introduced Accounts as the Clearing Firm CSC may reasonably require. At the time of the opening of any Introduced Accounts that which are margin accounts, the Introducing Firm Correspondent shall furnish the Clearing Firm CSC with executed customers' agreements, hypothecation agreements and consents to loans of securities (collectively, the "margin agreement"). The Clearing Firm CSC shall supply the Introducing Firm Correspondent with "new account" and margin agreement forms regarding margin accounts in sufficient quantities, such forms to be submitted to the Clearing Firm CSC upon their completion by the Introducing Firm, correspondent. If any Introduced Account may have been opened without the Clearing Firm CSC having previously received the foregoing information or, in the case of a margin account, without the Clearing Firm having previously received properly executed margin agreementsagreement, failure of the Clearing Firm CSC to receive such information or margin agreements shall not be deemed to be a waiver of the information requirements set forth herein. Upon the written or oral request of the Clearing FirmCSC, the Introducing Firm Correspondent shall furnish the Clearing Firm CSC with any other documents and agreements executed by the Introduced Account on forms which shall be supplied by the Clearing Firm CSC in sufficient quantities and which may reasonably be required by the Clearing Firm CSC in connection with the opening, operating or maintaining of any Introduced AccountsAccount. The Clearing Firm CSC may, at its electionoption, mail margin agreement or agreements, option agreements, "new account" forms or any other form at its discretion directly to the Introduced Accounts upon notification by of the Introducing FirmCorrespondent, and/or require completion of its own said margin agreement or agreements, "new account" forms and/or other forms, and, if required, option account agreements for the Introduced Accounts. The Introducing Firm Correspondent shall promptly provide the Clearing Firm CSC with basic data and copies of documents relating to each of the Introduced Accounts, including, but not otherwise limited to, copies of records of any receipts of the Introduced Accounts' funds and/or securities received directly by the Introducing FirmCorrespondent, as shall be necessary for the Clearing Firm CSC to discharge its service obligations hereunder.
B. (ii) All transactions in any Introduced Account are to be considered cash transactions until such time as CSC has received margin agreements, duly and validly executed in respect of such Introduced Account. Nevertheless, it is intended that Correspondent will obtain executed margin agreements within the time periods set forth in procedural manuals provided by CSC or any entity affiliated with CSC. In the event credit is inadvertently extended with respect to such Introduced Accounts, Correspondent shall indemnify and hold CSC harmless from and against all loss, liability, damage, cost and expense (including but not otherwise limited to seasonable fees and expenses of legal counsel) arising therefrom.
(iii) At the time of the opening of any agency Introduced Account, the Introducing Firm Correspondent shall furnish the Clearing Firm CSC with the name of any principal if other than the account name, for whom the Introducing Firm Correspondent is acting as agent, and written evidence of such authority.
C. (iv) The Introducing Firm Correspondent shall have the sole and exclusive responsibility for compliance with Rule 405(3) of the Rules and shall specifically approve the opening of any new account before forwarding such account to the Clearing Firm CSC as a potential Introduced Account. The Clearing FirmCSC, in its reasonable business judgmentjudgement, reserves the right to reject any account which the Introducing Firm Correspondent may tender forward to the Clearing Firm CSC as a potential Introduced Account. The Clearing Firm, in its reasonable business judgment, CSC also reserves the right to terminate any account previously accepted by it as an Introduced Account. By mutual agreement, CSC may open institutional accounts on behalf of Correspondents, if said institution deals directly with CSC or any affiliated organization.
D. (v) Pursuant to written notification received by the Introducing Firm Correspondent and forwarded to the Clearing FirmCSC, any account of the Introducing Firm Correspondent may choose to reject the services to be performed by the Clearing Firm CSC pursuant to this Agreement and thus choose not to be serviced as an Introduced Account pursuant hereto. Upon notice from another member organization that an Introduced Account intends to transfer his account thereto, the Clearing Firm CSC shall expedite such transfer and shall have the sole and exclusive responsibility for compliance with Rule 412 of the Rules.
E. (vi) It shall be the sole and exclusive responsibility of the Introducing Firm Correspondent to make every reasonable effort to ascertain the essential facts relative to any Introduced Account and any order therefortherefore, in compliance with Rule 405(1) of the Rules, including but not otherwise limited to ascertaining the authority of all orders for Introduced Accounts, and the genuineness of all certificates, papers and signatures provided by each Introduced Account. The Introducing Firm will not provide Any investment advice to include selection of a qualified money manager furnished to an Introduced Account by the Correspondent shall be the sole and exclusive responsibility of the Correspondent.
(vii) The Correspondent shall be solely and exclusively responsible for the handling and supervisory review of any Introduced Accounts over which the Correspondent's partners, officers or employees have discretionary authority, as required by Rule 408 of the Rules and any other applicable Laws and Regulations. The Correspondent shall furnish CSC with such documentation with respect thereto as may be requested by CSC. The Correspondent hereby agrees to indemnify and hold CSC harmless against any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses of legal counsel) suffered or incurred by CSC directly or indirectly as a result of any liabilities or claims arising from the exercise by the Correspondent, its customers and will not have partners, officers or employees of discretionary authority over Introduced Accounts. The Correspondent hereby warrants that with regard to any orders or instructions given by the Correspondent with respect to such discretionary accounts, its customers' assetspartners, officers or employees shall have been fully and properly authorized relative thereto and that the execution of such orders shall not be in violation of the Laws and Regulations. Furthermore, the Correspondent hereby agrees to indemnify and hold CSC harmless against any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses of legal counsel) suffered or incurred by CSC directly or indirectly as a result of any breach of the Correspondent's said warranty.
F. (viii) The Introducing Firm Correspondent shall have the sole and exclusive responsibility for the handling and supervisory review of any Introduced Account for an employee or officer of any member organization, self-regulatory organization, bank, trust company, insurance company or other organization engaged in the securities business, and for compliance with Rule 407 of the Rules relating thereto. The Introducing Firm Correspondent shall furnish the Clearing Firm CSC with such documentation with respect thereto as may be requested by the Clearing Firm,CSC.
G. (xi) The Introducing Firm Correspondent shall have the sole and exclusive responsibility to ensure insure that those of its customers who become Introduced Accounts hereunder shall not be minors or subject to those prohibitions existing under the Laws and Regulations generally relating to the incapacity of any Introduced Account or any conflict of interest relating to such Introduced Account.
H. (x) The Introducing Firm Correspondent shall be solely and exclusively responsible for any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses of legal counsel) sustained or incurred by either the Introducing Firm itself or the Clearing FirmCSC, arising out of or resulting from any orders the Introducing Firm Correspondent has taken from an Introduced Accounts Account residing or being domiciled in jurisdictions in which the Introducing Firm Correspondent has not been or is no longer authorized to do business.
I. It shall be the sole and exclusive responsibility of the Introducing Firm to comply with any and all prospectus delivery requirements in connection with Introduced Accounts which are option accounts.
J. For purposes of the Securities Investors Protection Act and the financial responsibility rules promulgated by the Securities and Exchange Commission, the Introduced Accounts shall be deemed customers of the Clearing Firm. For all other purposes, the responsibilities of the Clearing Firm and the Introducing Firm with respect to the Introduced Accounts shall be as specified herein, including with respect to the Introducing Firms supervisory responsibility specified herein.
Appears in 1 contract
Opening of Accounts. A. At the time of the opening of each Introduced Account, the Introducing Firm shall furnish the Clearing Firm with all financial and personal information concerning such Introduced Accounts as the Clearing Firm may reasonably require. At the time of the opening of Introduced Accounts that are margin accounts, the Introducing Firm shall furnish the Clearing Firm with executed customers' agreements, hypothecation agreements and consents to loans of securities (collectively, the "margin agreement"). The Clearing Firm shall supply the Introducing Firm with "new account" and margin agreement forms regarding margin accounts in sufficient quantities, such forms to be submitted to the Clearing Firm upon their completion by the Introducing Firm, . If any Introduced Account may have been opened without the Clearing Firm having previously received the foregoing information or, in the case of a margin account, without the Clearing Firm having previously received properly executed margin agreements, failure of the Clearing Firm to receive such information or margin agreements shall not be deemed to be a waiver of the information requirements set forth herein. Upon the written or oral request of the Clearing Firm, the Introducing Firm shall furnish the Clearing Firm with any other documents and agreements executed by the Introduced Account on forms which shall be supplied by the Clearing Firm in sufficient quantities and which may reasonably be required by the Clearing Firm in connection with the opening, operating or maintaining of Introduced Accounts. The Clearing Firm may, at its election, mail margin agreement or "new account" forms directly to the Introduced Accounts upon notification by the Introducing Firm, and/or require completion of its own margin agreement or "new account" forms and, if required, option account agreements for the Introduced Accounts. The Introducing Firm shall promptly provide the Clearing Firm with basic data and copies of documents relating to each of the Introduced Accounts, including, but not otherwise limited to, copies of records of any receipts of the Introduced Accounts' funds and/or securities received directly by the Introducing Firm, as shall be necessary for the Clearing Firm to discharge its service obligations hereunder.
B. At the time of the opening of any agency Introduced Account, the Introducing Firm shall furnish the Clearing Firm with the name of any principal for whom the Introducing Firm is acting as agent, and written evidence of such authority.
C. Within 10 days after the signing of the Agreement, the Introducing Firm will provide notice to the Clearing Firm of the designation of an anti-money laundering compliance officer as discussed more fully in paragraph 9(i)(d) of Article XII(A) below, and where required, to the appropriate regulatory authority.
D. At or prior to the time of the opening of each Introduced Account, the Introducing Firm will obtain sufficient information from its customer to satisfy itself that the customer is the individual or entity it says it is, that its funds are legitimate, and that the Introduced Account is not established or maintained for a foreign "shell bank," as defined by the Bank Secrecy Act, as amended by the USA PATRIOT Act, and that, if it is a foreign bank, it has taken reasonable steps to ensure that the Introduced Account is not used to indirectly service foreign shell banks.
E. At the time of the opening of any Introduced Account, the Introducing Firm will obtain a copy of the passport of any foreign individual opening the Introduced Account.
F. At the time of the opening of any Introduced Account, the Introducing Firm will obtain sufficient information from its customer to satisfy itself opening the account would not violate the provisions of any Laws and Regulations.
G. The Introducing Firm shall have the sole and exclusive responsibility for compliance with Rule 405(3) of the Rules and shall specifically approve the opening of any new account before forwarding such account to the Clearing Firm as a potential Introduced Account. The Clearing Firm, in its reasonable business judgment, reserves the right to reject any account which the Introducing Firm may tender to the Clearing Firm as a potential Introduced Account, even if the account has already been processed by the Introducing Firm. The Clearing Firm, in its reasonable business judgment, reserves the right to terminate any account previously accepted by it as an Introduced Account.
D. H. Pursuant to written notification received by the Introducing Firm and forwarded to the Clearing Firm, any account of the Introducing Firm may choose to reject the services to be performed by the Clearing Firm pursuant to this Agreement and thus choose not to be serviced as an Introduced Account pursuant hereto. Upon notice from another member organization that an Introduced Account intends to transfer his account thereto, the Clearing Firm shall expedite such transfer and shall have the sole and exclusive responsibility for compliance with NYSE Rule 412 of the Rules412.
E. I. It shall be the sole and exclusive responsibility of the Introducing Firm to make every reasonable effort to ascertain the essential facts relative to any to:
1. Any Introduced Account and any order therefor, in compliance with Rule 405(1) of the Rules, including but not otherwise limited to ascertaining the authority of all orders for Introduced Accounts, and the genuineness of all certificates, papers and signatures provided by each Introduced Account, and
2. The Introducing Firm will not provide investment advice Any customer identification and verification requirements for determining the Introduced Account's identity as required by the Laws and Regulations, including the USA PATRIOT Act and its implementing regulations and all similar Laws and Regulations, including all rules and regulations relating to its customers your anti-money laundering and will not have discretionary authority over its customers' assetsOFAC reporting obligations in paragraph 9 of Article XII(A), as set forth below.
F. J. The Introducing Firm shall have the sole and exclusive responsibility for the handling and supervisory review of any Introduced Account for an employee or officer of any member organization, self-regulatory organization, bank, trust company, insurance company or other organization engaged in the securities business, and for compliance with NYSE Rule 407 of the Rules relating thereto407. The Introducing Firm shall furnish the Clearing Firm with such documentation with respect thereto as may be requested by the Clearing Firm,.
G. K. The Introducing Firm shall have the sole and exclusive responsibility to ensure that those of its customers who become Introduced Accounts hereunder shall not be minors or subject to those prohibitions existing under the Laws and Regulations generally relating to the incapacity of any Introduced Account or any conflict of interest relating to such Introduced Account.
H. L. The Introducing Firm shall be solely and exclusively responsible for any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses of legal counsel) sustained or incurred by either the Introducing Firm or the Clearing Firm, arising out of or resulting from any orders the Introducing Firm has taken from Introduced Accounts residing or being domiciled in jurisdictions in which the Introducing Firm has not been or is no longer authorized to do business.
I. M. It shall be the sole and exclusive responsibility of the Introducing Firm to comply with any and all prospectus delivery requirements in connection with Introduced Accounts which are option accounts.
J. N. For purposes of the Securities Investors Investor Protection Act and the financial responsibility rules promulgated by the Securities and Exchange CommissionSEC, the Introduced Accounts shall be deemed customers of the Clearing Firm. For all other purposes, the responsibilities of the Clearing Firm and the Introducing Firm with respect to the Introduced Accounts shall be as specified herein, including with respect to the Introducing Firms Firm's supervisory responsibility specified herein.
Appears in 1 contract
Sources: Clearing Agreement (International Assets Holding Corp)
Opening of Accounts. A. At the time of the opening of each Introduced Account, the Introducing Firm shall furnish the Clearing Firm with all financial and personal information concerning such Introduced Accounts as the Clearing Firm may reasonably requirerequire including but not limited to the tax identification number for each Introduced Account. At the time of the opening of Introduced Accounts that are margin accounts, the Introducing Firm shall furnish the Clearing Firm with executed customers' agreements, hypothecation agreements and consents to loans of securities (collectively, the "margin agreement"). With respect to Introduced Accounts which are Individual Retirement Accounts for which the Clearing Firm serves as custodian, the Introducing Firm shall furnish such documentation and information as may be required by the Clearing Firm. The Clearing Firm shall supply the Introducing Firm with "new account" and margin agreement forms regarding margin accounts in sufficient quantities, such forms to be submitted to the Clearing Firm upon their completion by the Introducing Firm, . If any Introduced Account may have been opened without the Clearing Firm having previously received the foregoing information or, in the case of a margin account, without the Clearing Firm having previously received properly executed margin agreements, failure of the Clearing Firm to receive such information or margin agreements shall not be deemed to be a waiver of the information requirements set forth herein. Upon the written or oral request of the Clearing Firm, the Introducing Firm shall furnish the Clearing Firm with any other documents and agreements executed by the Introduced Account on forms which shall be supplied by the Clearing Firm in sufficient quantities and which may reasonably be required by the Clearing Firm in connection with the opening, operating or maintaining of Introduced Accounts. The Clearing Firm may, at its election, mail margin agreement or "new account" forms directly to the Introduced Accounts upon notification by the Introducing Firm, and/or require completion of its own margin agreement or "new account" forms and, if required, option account agreements for the Introduced Accounts. The Introducing Firm shall promptly provide the Clearing Firm with basic data make and maintain copies of documents relating all agreements executed by or related to each of the Introduced Accounts, including, but not otherwise limited to, copies of records of any receipts of the Introduced Accounts' funds and/or securities received directly by the Introducing Firm, as shall be necessary for the Clearing Firm to discharge its service obligations hereunder.
B. At the time of the opening of any agency Introduced Account, the Introducing Firm shall furnish the Clearing Firm with the name of any principal for whom the Introducing Firm is acting as agent, and written evidence of such authority.
C. The Introducing Firm shall have the sole and exclusive responsibility for compliance with Rule 405(3) of the Rules and shall specifically approve the opening of any new account before forwarding such account to the Clearing Firm as a potential Introduced Account. The Clearing Firm, in its reasonable business judgment, reserves the right to reject any account which the Introducing Firm may tender to the Clearing Firm as a potential Introduced Account. The Clearing Firm, in its reasonable business judgment, reserves the right to terminate any account previously accepted by it as an Introduced Account.
D. Pursuant to written notification received by the Introducing Firm and forwarded to the Clearing Firm, any account of the Introducing Firm may choose to reject the services to be performed by the Clearing Firm pursuant to this Agreement and thus choose not to be serviced as an Introduced Account pursuant hereto. Upon notice from another member organization that an Introduced Account intends to transfer his account thereto, the Clearing Firm shall expedite such transfer and shall have the sole and exclusive responsibility for compliance with Rule 412 of the Rules.
E. It shall be the sole and exclusive responsibility of the Introducing Firm to make every reasonable effort to ascertain the essential facts relative to any Introduced Account and any order therefor, in compliance with Rule 405(1) of the Rules, including but not otherwise limited to ascertaining the authority of all orders for Introduced Accounts, tax identification number and the genuineness of all certificates, papers and signatures provided by each Introduced Account. The Introducing Firm will not provide investment advice to its customers and will not have discretionary authority over its customers' assets.
F. The Introducing Firm shall have the sole and exclusive responsibility for the handling and supervisory review of any Introduced Account for an employee or officer of any member organization, self-regulatory organization, bank, trust company, insurance company or other organization engaged in the securities business, and for compliance with Rule 407 of the Rules relating thereto. The Introducing Firm shall furnish the Clearing Firm with such documentation with respect thereto as may be requested by the Clearing Firm,
G. The Introducing Firm shall have the sole and exclusive responsibility to ensure that those of its customers who become Introduced Accounts hereunder shall not be minors or subject to those prohibitions existing under the Laws and Regulations generally relating to the incapacity of any Introduced Account or any conflict of interest relating to such Introduced Account.
H. The Introducing Firm shall be solely and exclusively responsible for any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses of legal counsel) sustained or incurred by either the Introducing Firm or the Clearing Firm, arising out of or resulting from any orders the Introducing Firm has taken from Introduced Accounts residing or being domiciled in jurisdictions in which the Introducing Firm has not been or is no longer authorized to do business.
I. It shall be the sole and exclusive responsibility of the Introducing Firm to comply with any and all prospectus delivery requirements in connection with Introduced Accounts which are option accounts.
J. For purposes of the Securities Investors Protection Act and the financial responsibility rules promulgated by the Securities and Exchange Commission, the Introduced Accounts shall be deemed customers of the Clearing Firm. For all other purposes, the responsibilities of the Clearing Firm and the Introducing Firm with respect to the Introduced Accounts shall be as specified herein, including with respect to the Introducing Firms supervisory responsibility specified herein.appropriate certification
Appears in 1 contract
Sources: Clearing Agreement (Olympic Cascade Financial Corp)