Annual Disclosure Statement Regarding Partially Called Bonds
Janney is providing this disclosure to inform you of the basic processing applied by Janney regarding the impartial lottery process for callable bonds.
When you purchase bonds that are callable in part (i.e., less than the full amount of outstanding bonds may be called), per FINRA Rule 4340 (Securities Callable in Part), Janney is required to run an impartial lottery which calls bonds from client accounts on a randomly selected basis, and holds them until the applicable redemption date. The process by which client accounts are randomly selected can be found on the Janney website, by clicking here.
For more information on partially called bonds, there are several websites with valuable information, including:
U.S. Securities and Exchange Commission
Financial Industry Regulatory Authority
FINRA Rule 4340