For your records, an additional copy of the Client Agreement and Disclosures is provided below. You initially received these documents when signing the Client Agreement & Substitute W-9.
disclosures online at www.janney.com or by requesting a copy of these materials from your Financial Advisor. These terms and conditions fully apply to this and any new investment account(s) you open at Janney Montgomery Scott LLC (“Janney”)
and they may be modified or updated at any time, at Janney’s sole discretion.
By signing the Client Agreement & Substitute W-9 (“Agreement”), the client(s) (“You” or “Your”) agree to the following terms and conditions and acknowledge the following disclosures:
YOUR SIGNATURE/FUTURE ACCOUNTS
The signature you provide on this Agreement governs the terms of the accounts or services you are establishing now and that you add in the future. When you open a new account or enroll in a service, we will provide you with the agreement and any disclosures
for that account or service and confirm your enrollment in that account or service in writing. Those agreements and disclosures are incorporated into this Agreement by reference. If the terms governing an account or service are different from the
terms outlined here, the terms of that account or service will apply. This means that your initial signature acts as your agreement to the terms of the new account or service. As a result, in many cases, you will not need to sign an additional account
agreement or other form.
GENERAL TERMS AND CONDITIONS
You acknowledge and agree that all transactions and activity in all accounts created from this Agreement will be governed by the rules, constitutions, customs and usages of the exchange or market (and its clearinghouse, if any) where executed, the rules
and regulations of the Securities and Exchange Commission (“SEC”), the Federal Reserve Board and any other regulatory or self-regulatory agency having authority, and that the rights and obligations of the parties shall be determined in
accordance with federal law and the laws of the Commonwealth of Pennsylvania, without regard to Pennsylvania’s conflicts of laws principles.
If you are a natural person or persons, you represent that you are of full legal age in the state or jurisdiction in which you reside and that you are competent to enter into this Agreement and perform the obligations under it. If you are a fiduciary,
trustee, corporate officer, partner or other representative of a legal entity or entities, including a corporation, limited liability company, partnership, limited liability partnership, estate or trust, you represent that such entity has all necessary
power and authority to execute and perform this Agreement and that the execution and performance of this Agreement will not cause the entity to violate any provisions in its charter, by-laws, partnership agreement, trust agreement or other constituent,
governing or operating agreement or instrument. If you are a fiduciary, trustee, corporate officer, partner or other representative of a legal entity or entities, you represent that you acting alone have full power and authority to deal with Janney
on behalf of and without notice to the legal entity or entities, any other joint owner or any other person who has signed this Agreement. You further represent that this Agreement, as amended from time to time, is a legal, valid and binding obligation,
enforceable against the entity (if not a natural person) in accordance with its terms. You, any agents authorized by you to act on your behalf through a power of attorney or limited trading authorization accepted and approved by Janney, and any agents
appointed by law will be the only authorized users of the brokerage and other services under this Agreement.
This Agreement contains the entire understanding between you and Janney concerning the subject matter of this Agreement, and you acknowledge that there are no oral or other agreements in conflict herewith. This Agreement will cover individually and collectively
all brokerage accounts, whether in joint, single or fiduciary capacity, which are opened by Janney for you. This Agreement supersedes any previous agreements made by you individually, jointly, or in a fiduciary capacity with Janney relating to any
of your accounts, to the extent the subject matter is covered in this Agreement. You may not assign the rights and obligations of this Agreement without first obtaining Janney’s written consent. Janney may amend this Agreement at any time by
posting changes to the Agreement on our website, www.janney.com. Your continued use of your account(s) after the effective date of the revised Agreement as disclosed on our website, or after a reasonable period of time if no such date is stated, will
constitute your acceptance of the revised Agreement. This Agreement shall be binding upon, and shall inure to the benefit of, Janney, its successors or assigns, you and your heirs, executors, administrators, trustees, receivers, successors or assigns.
If any provision of this Agreement is held to be invalid, that shall not affect the validity of the remaining provisions of the Agreement.
You acknowledge and agree that the information that you have provided to Janney for the purposes of establishing your account(s) is current, accurate, truthful and complete. You agree to promptly notify Janney upon any changes in such information, including,
but not limited to, any changes in your selected investment objectives or financial situation. No one except the person(s) or entity(ies) listed on the Agreement has an interest in the account being applied for. You agree to notify Janney in writing
(a) if you or an immediate family member is or becomes employed or affiliated with a broker-dealer, a U.S. stock exchange or the Financial Industry Regulatory Authority (“FINRA”); or (b) if you are or become an officer, director or ten
percent (10%) or greater shareholder of a U.S. publicly-traded company.
Whenever any statute shall be enacted which will in any way affect or be inconsistent with any of the provisions hereof, or whenever any rule or regulation shall be prescribed or promulgated by FINRA, the SEC, or any other federal, state or self-regulatory
committee which will in any way affect or be inconsistent with any of the provisions hereof, the provisions of this Agreement so affected will be deemed modified or superseded, as the case may be, by such statute, rule or regulation, and all other
provisions of this Agreement will in all respects continue to be in full force and effect. Janney may reject, cancel or modify any transactions that you have requested at any time, for any reason without prior notice to you. Janney may suspend or
terminate your account at any time, for any reason and without prior notice to you. You acknowledge that all employees acting on behalf of Janney do not provide legal or tax advice. Complaints relating to your account(s) should be forwarded to the
Legal Department of Janney Montgomery Scott LLC, 1717 Arch Street, Philadelphia, PA 19103 or call 1-800-526-6397.
Communications may be sent to you at your last address or at such other addresses as you may hereafter give Janney, including any e-mail address if provided by you, and all communications so sent, whether by mail, e-mail, messenger or otherwise, will
be deemed given to your personally, whether actually received or not.
FEES, CHARGES AND COMMISSIONS
You agree to pay Janney its brokerage commissions, charges, or other fees. Janney may change its brokerage commission rates without notice to you. Janney’s Schedule of Account Service Charges is available on our website at: www.janney.com/docs/rates or you may request a copy from your Financial Advisor. Janney may change its fees at any time by posting the changes to our website. Your continued use of your account(s) after the effective date of any changes to the fees, or after a reasonable period
of time if no such date is stated, will constitute your acceptance of such fee changes.
PURCHASES AND SALES
In the event sufficient funds are not available in your account when a purchase order is executed, you promise to pay the full amount due on or before the settlement date for the purchase. In the event a sales order is executed and the securities sold
are not in your account, you promise to deliver all securities sold on or before the settlement date. If such funds or securities are not received on or before the settlement date, Janney may liquidate sufficient assets or repurchase securities sold
but not received into your account and you will be liable for any resulting losses and all associated costs that Janney may incur as a result of that liquidation or repurchase.
CASH DEBIT BALANCES
Janney may assess interest against a non-margin account in connection with any debit balances resulting from your failure to make payment in full for securities purchased, from proceeds of sales prior to settlement date, or for other charges that Janney
may make to the account. The following is the annual interest rate that will be charged on all non-margin account debit balances (effective July 1, 2013):
Janney charges interest based on the Janney Base Rate (“Base Rate”). The Base Rate is an internally calculated rate established by Janney that changes from time to time based on Janney’s cost of funds and Janney’s assessment of
the rates charged in the financial markets. The interest rate that you will be charged will increase or decrease as the Base Rate increases or decreases. The Base Rate will be published on Janney’s website and is subject to change without notice
PAYMENT OF INDEBTEDNESS
If you become indebted to Janney, you agree to promptly and fully repay such indebtedness upon demand. Whenever you are indebted to Janney for any amount, all securities held by Janney for you in any account in which you have any interest will secure
all your liabilities to Janney. You, jointly and severally, agree that if, after demand by Janney, you fail to promptly repay the indebtedness, Janney may, in its discretion at any time, close any or all of your accounts and, without further notice,
liquidate assets in any or all of your accounts by public or private sale or purchase or both in an amount sufficient to pay your indebtedness, buy in (cover) short positions, cancel outstanding orders in whole or in part, and take any other appropriate
or necessary action without incurring any liability whatsoever. All costs of collection and any unpaid deficiency in your account, including, without limitation, attorneys’ fees, incurred by Janney shall be fully reimbursed by you to Janney.
Any balance remaining due to Janney shall be promptly paid by you. Any and all notices of purchase or sales or any demand for margin sent to you shall be binding upon you and upon your accounts. You, jointly and severally, agree that Janney shall
have a lien on and may hold as collateral security for said account any and all securities and equities Janney may hold or have in any account at any time for you or any one of you and that the assertion or enforcement of any such lien shall not affect
or alter the liability of any of you for any debit balance or loss on said account.
The provisions of this section shall not apply to an Individual Retirement Account (IRA) or account subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), except to the extent such indebtedness or liabilities
arise with respect to that IRA or ERISA account.
PRE-DISPUTE ARBITRATION DISCLOSURE
This Agreement contains a pre-dispute arbitration clause. By signing an arbitration agreement, the parties agree as follows:
(1) All parties to this Agreement are giving up the right to sue each other in court, including the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed.
(2) Arbitration awards are generally final and binding; a party’s ability to have a court reverse or modify an arbitration award is very limited.
(3) The ability of the parties to obtain documents, witness statements and other discovery is generally more limited in arbitration than in court proceedings.
(4) The arbitrators do not have to explain the reason(s) for their award, unless, in an eligible case, a joint request for an explained decision has been submitted by all parties to the panel at least twenty (20) days prior to the first scheduled hearing
(5) The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry.
(6) The rules of some arbitration forums may impose time limits for bringing a claim in arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court.
(7) The rules of the arbitration forum in which the claim is filed, and any amendments thereto, shall be incorporated into this Agreement.
Any controversy between Janney and you, to inure to the officers, directors, shareholders, employees, partners, attorneys, affiliates, representatives, spouses, trustees, heirs, successors and assigns, arising out of Janney’s business, the Agreement
or any of your accounts with Janney, shall be submitted to arbitration conducted under the terms of the Code of Arbitration Procedure of FINRA. In order to induce Janney to accept this Agreement, you agree that the laws of the Commonwealth of Pennsylvania
shall govern this Agreement, without regard to any conflict or choice of law provisions. No person shall bring a putative class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement against any person who has initiated in
court a putative class action; or who is a member of the putative class who has not opted out of the class with respect to any claims encompassed by the putative class until: (i) the class certification is denied or (ii) the class is decertified or
(iii) the customer is excluded from the class by the court. Such forbearance to enforce an agreement to arbitration shall not constitute a waiver of any rights under this Agreement except to the extent stated herein.
If either Janney or your Financial Advisor is named as a party to a lawsuit, or incurs legal costs associated with a dispute regarding ownership or beneficiary interests of your assets at Janney, you agree that Janney will, at its sole discretion, be
indemnified for those costs directly from your assets held at Janney.
NON-WAIVER OF RIGHTS
Janney’s failure to insist at any time upon strict compliance with any term of this Agreement, or any delay or failure on Janney’s part to exercise any power or right given Janney in this Agreement, or a continued course of such conduct on
Janney’s part, shall at no time operate as a waiver of such power or right, nor shall any single or partial exercise preclude any other further exercise. All rights and remedies given Janney under this Agreement are cumulative and not exclusive
of any other rights or remedies which Janney may otherwise have.
In consideration of Janney carrying a joint account for you, you jointly and severally agree to be fully responsible and liable for your account and to pay on demand any debit balance or losses at any time due in this account. Each of you has full power
and authority to make purchases and sales, withdraw monies and securities from it, obtain loans secured against securities in the account or do anything else with reference to said account, either individually or in your joint names, as either or
any of you may elect, and Janney is authorized and directed to act upon instruction from any one of you.
If your account is a joint account with two or more owners, each joint owner agrees that each joint owner will have authority on behalf of all of the joint owners to deal with Janney as fully and completely as if each was the sole owner of the account,
all without notice to the other joint owner(s). Notwithstanding the foregoing, each joint owner agrees that Janney may, at its sole discretion: (a) require joint instruction from some or all of the joint owners before taking action under this Agreement;
and (b) if Janney receives instructions from any joint owner that are, in Janney’s opinion, in conflict with instructions received from any other joint owner, Janney may comply with any of these instructions and/or advise each joint owner of
the apparent conflict and/or take no action as to any of these instructions until it receives instructions from any or all of the joint owners that are satisfactory to it. Notice provided by Janney to any joint owner will be deemed notice to all joint
owners. Each joint owner further agrees that it, he or she will be joint and severally liable for the account with each other joint owner.
If your account is designated as “Tenants in Common,” in the event of the death of either or any of the persons designated as tenants in common, the interests in the account shall be vested equally in the decendent’s estate and the survivor(s),
unless different percentages (which must total 100%) are specified in a letter of instruction, which all account holders must have signed. By doing so, all holders acknowledge they have voluntarily agreed to such division amongst themselves and that
they direct Janney to distribute their interests accordingly, without any liability thereafter.
If your account is designated as “Joint Tenants with Rights of Survivorship,” in the event of the death of either or any of the persons designated as joint tenants with rights of survivorship, the entire interest in the joint account shall
be vested in the survivor(s) on the same terms and conditions as currently held, without in any manner releasing your estates from the liability provided in this Agreement. If no designation is made for a joint account, each of you as joint owners
directs Janney to establish the account as “Joint Tenants with Rights of Survivorship.”
A fiduciary is a person or entity authorized to make decisions with respect to an account on behalf of the account’s beneficial owner(s). A fiduciary is a trustee, custodian of an UGMA or UTMA account, conservator, guardian, executor, administrator,
partner, attorney-in-fact, investment advisor or any other person or entity that represents a legal entity and has authority over a legal entity’s Janney account. You understand and agree that Janney does not review any action or inaction by
a fiduciary and is not responsible for determining whether a fiduciary’s action or inaction satisfies the standard of care applicable to such fiduciary’s handling of the account. You further understand and agree that Janney is not responsible
for determining the validity of a person’s or entity’s status or capacity to serve as a fiduciary. As a fiduciary, you agree to hold Janney and its officers, directors, employees, agents and affiliates harmless from any liability, claim
or expense (including attorneys’ fees and disbursements), as incurred, for your actions or inactions. If the account has two or more fiduciaries authorized to make decisions, each fiduciary shall have full authority to deal with Janney as fully
and completely as if each was the sole owner of the account, all without notice to the other fiduciary(ies), unless Janney is notified otherwise in writing. Notwithstanding the foregoing, Janney may, at its sole discretion: (a) require joint instruction
from some or all of the fiduciaries before taking action under this Agreement; and (b) if Janney receives instructions from any or all of the fiduciaries that are, in Janney’s opinion, in conflict with instructions received from any other fiduciary,
Janney may comply with any of these instructions and/ or advise each fiduciary of the apparent conflict and/or take no action as to any of these instructions until it receives instructions from any or all of the fiduciaries that are satisfactory to
UTMA/UGMA laws state that the Custodial nature of the accounts terminates upon the minor beneficiary’s reaching the legal age of majority. Therefore, on the date that the beneficiary reaches the age of majority, Janney will restrict activity in any UTMA/UGMA account to liquidating transactions only. This restriction will remain in effect until Janney receives the necessary documentation to re-register the account in the name of the beneficiary or instructions to transfer the assets to an account held by the beneficiary. That documentation will include updated contact information, updated account information and a Janney Client Agreement signed by the beneficiary.
Janney is required by regulation to ask if you would like to provide a Trusted Contact for your account. However, you are not required to provide a Trusted Contact. If you provide a Trusted Contact, you agree that Janney is authorized, without obligation
and at the Firm’s sole discretion, to contact the Trusted Contact and disclose information about your account to address possible financial exploitation and to confirm the specifics of your current contact information, health status, and identity
of any legal guardian, executor, trustee or holder of power of attorney. Janney may elect to notify an individual that they have been named as a Trusted Contact, but is not required to do so. The Trusted Contact role is authorized only to share information
and is not authorized to transact business on your behalf.
BANKRUPTCY, INSOLVENCY, REORGANIZATION, DISSOLUTION, TERMINATION, INCOMPETENCY AND DEATH
You agree to promptly give written notice to Janney in the event of your bankruptcy or insolvency, and if you are not a natural person, of your reorganization, dissolution, termination or other similar condition. If you are a natural person, you agree
that your guardian will give Janney written notice of your incompetency and that your estate will give Janney written notice of your death. Janney may, before or after receiving notice of any of the conditions described in this paragraph, commence
any proceedings, require any documents, retain any portion of or restrict transactions in the account, as it deems advisable in its discretion to protect itself against any tax, liability, penalty, expense or loss. If you are subject to any of the
conditions described in this paragraph, you and the remaining joint owners, as well as the estate of any deceased owner or joint owner and each surviving joint owner will be liable, jointly and severally, to Janney for: (a) any tax, liability, penalty,
expense or loss in the account resulting from the completion of transactions initiated prior to Janney’s receipt of a written notice of the condition, and (b) any tax, liability, penalty, expense or loss incurred in the liquidation of the account
or the adjustment of the interests of the joint owners, and (c) any other obligation owing with respect to the account.
If your account is a joint account, any tax, liability, penalty, expense or loss becoming a lien against or payable out of the account as the result of any of the conditions described above or through the exercise of any power by a trustee or the representative
of an estate will be chargeable against the interests of the remaining joint owners or surviving owners, as well as the interest of the estate and the beneficiaries of the estate. Each person indicated in the title to the account who executes this
Agreement agrees to give written notice to Janney in the event of bankruptcy, insolvency, reorganization, incompetency or death of any other joint owner.
PLATINUM DEBIT CARD
If you have selected the Platinum Debit Card option, you request that Janney provide you with a debit card sponsored by BNY Mellon Services Corporation (“BNY Mellon”) and authorize Janney to open an account in your name as it appears on your
Janney account, as an adjunct to your Janney cash or margin account (“Brokerage Account”). You understand that you may be eligible to borrow against margin through your Brokerage Account. You must check with your Financial Advisor for
details. You are herewith also applying to BNY Mellon to establish a debit recordkeeping account in your Brokerage Account and request that BNY Mellon provide you with one or more Platinum Debit Card(s) for use with your Brokerage Account. Your Platinum
Debit Card(s) will be mailed to the address of record of your Brokerage Account. A Services Program Information Statement and Agreement (“Information Statement”) will be sent to you along with your new Platinum Debit Card(s). Your activation
of your Platinum Debit Card(s) indicates that you have received, read and agree to the terms in the Information Statement.
A Personal Identification Number (“PIN”) is required when you use your Platinum Debit Card at automated teller machines (“ATM”). Following receipt of your Platinum Debit Card, you will need to activate your Debit Card by contacting
us. During the activation call, you will be requested to select a PIN.
ONLINE ACCOUNT ACCESS AND E-BILL PAYMENT SERVICES
Instruction on enrolling and using Janney’s Online Access and E-Bill Payment Services can be found at www.janney.com. E-Bill Payment accounts which have become inactive may be unenrolled after sixty (60) days of inactivity.
Trade confirmations are created immediately upon the completion of a transaction in your account and are delivered to you. At a minimum, account statements are delivered quarterly to you for all accounts maintaining a cash or security balance. Moreover,
statements are delivered to you monthly for accounts in which transactions occurred during the month that affect those accounts’ balances or security positions.
Account statements and confirmations should be retained for your records. If you do not understand an entry on your statements or confirmations, if you believe that any of the information contained on your statements or confirmations is incorrect, or
if you believe that the statements or confirmations do not accurately reflect transactions or other activity in your account, please submit an inquiry to the Janney branch office manager of the office handling your account or to Janney’s Compliance
Department at Janney Montgomery Scott LLC, 1717 Arch Street, Philadelphia, PA 19103 or call 1-800-526-6397.
VERBAL AUTHORIZATION TERMS AND CONDITIONS
You authorize Janney to accept your verbal authorization to transfer funds from your Janney accounts. You certify that a) you are duly authorized to transfer funds or securities or direct the issuance of a check from a Janney account for which you are
an owner, fiduciary or authorized party to a Janney account, non- Janney brokerage account, bank account or other third-party account that you identify at the time of the transfer, b) you assume responsibility for any adverse consequences that may
arise from execution of any instructions that you provide to Janney to transfer assets from a Janney account, and neither Janney nor any of its agents, employees, successors or assigns shall be responsible for those consequences, c) you are bound
by all terms and conditions contained herein and you continue to be bound by the terms and conditions of all other Janney agreements that you already have signed or executed or that you will sign or execute in the future, including New Account Forms,
W-9, W-8, and, if applicable, the Certificate of Fiduciary Authority, and the IRA Adoption Agreement, and d) you shall indemnify and hold harmless Janney and its agents, employees, successors and assigns from any and all losses, claims, or damages,
including professional fees incurred as result of and in reliance upon the authorization and resulting transactions contemplated by these Terms and Conditions.
For journals into IRA, Roth IRA, Coverdell, SEP, SAR-SEP and Simple IRAs: You understand that a funds transfer is a contribution to the targeted IRA account type for a current year and/or prior year contribution based upon the verbal instructions you
provide to Janney. If no instructions are given, all contributions will default to the current year. You understand that any contribution made to an IRA account for which you are the owner is subject to the terms and conditions Janney provided you
upon the opening of the IRA account. For prior year employer contribution journals being made after the IRS tax filing deadline, you certify the contribution is being made by the due date of the employer’s tax return, including extension. You
also understand that Janney can accept contribution requests only if the requests are made prior to the deadline established.
ELECTRONIC FUNDS TRANSFER (“EFT”)
EFT enables you to invest or withdraw a specified amount between a checking account at a banking institution and your Janney account. Funds can be transferred either from or to your checking account at another institution, as well as transferred between
ONLINE & MOBILE APP
By enrolling in MyJanney, our online access platform, you can also utilize our Online Access website and our Mobile App. You may be able to transfer funds through the MyJanney Online website and MyJanney App depending on your account type and compatibility
with your device. Accessibility is subject to a separate Agreement for MyJanney; see the MyJanney Terms and Conditions for additional details.
LOSSES DUE TO EXTRAORDINARY EVENTS
Janney shall not be liable for loss caused directly or indirectly by war, natural disaster or other acts of nature, terrorism, civil unrest, government restrictions, exchange or market rulings, extraordinary market volatility, exchange conditions, trading
halts or any other conditions beyond its control.
Either Janney or you may terminate this Agreement at any time, effective upon mailing written notice to the other party. If the Agreement is terminated, you will continue to be responsible for any obligation incurred by you prior to termination. Janney
reserves the right to reject an account agreement or at any time to close an account or suspend services provided under this Agreement.
IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT
To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you:
When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. You hereby expressly consent to
allowing Janney to contact credit bureaus and/or other third parties to verify the information you have provided on the Client Agreement.
CASH SWEEP PROGRAM
As a convenience to our clients, Janney maintains a cash sweep program (“Sweep Program”) with three investment options: FDIC Insured Sweep Program (“Insured Sweep Program”), Dreyfus Money Market Sweep Program (“Dreyfus Sweep”)
and Tax-Advantaged Money Market Sweep Program (“TAMM”). Each option has certain eligibility requirements which are described in greater detail below. Janney may change the products available under the Sweep Program from time to time with
notice to you.
You affirmatively consent to participation in Janney’s Sweep Program by signing the Client Agreement with Janney. However, you may revoke your consent to participate in the Sweep Program at any time by informing your Financial Advisor and completing
the necessary forms. If you decline participation in the Sweep Program, the cash portion of your account(s) will remain as a free-credit balance until you instruct your Financial Advisor to invest such balance. Janney does not pay interest on free-credit
balances in Janney accounts.
The yields and rates of return for deposit accounts in the Insured Sweep Program are different, and may be lower or higher, than the yields and rates of return for the money market mutual funds available in Dreyfus Sweep and TAMM. A discussion of the
characteristics and administration of the Sweep Program as well as a discussion of client rates of return follows below.
You may make a withdrawal from any of the Insured Sweep Program options on any business day. Withdrawals may be effected through any of the features available to your account (e.g., check, ATM/debit card) or by contacting your Financial Advisor.
INSURED SWEEP - GENERAL
Unless the account is an ERISA advisory account or you have selected an available money market sweep option, you authorize Janney to open a sweep account through your eligible Janney account(s) in the Federal Deposit Insurance Corporation (“FDIC”)
insured cash sweep program (“Insured Sweep Program”). All accounts, other than ERISA advisory accounts, are eligible to participate in the Insured Sweep Program. Under the Insured Sweep Program, free credit balances (i.e., cash) in your
account as a result of deposits or the sale of securities are automatically deposited or “swept” into an interest-bearing bank deposit account. Cash deposited in the Insured Sweep Program accounts at program banks are not subject to market
risk and value loss, but are subject to the risk of a bank’s failure. In the unlikely event that a program bank fails, the balances in the deposit accounts in the Insured Sweep Program are insured by the FDIC up to FDIC deposit insurance coverage
limits, and are not covered by Janney or Securities Investor Protection Corporation (“SIPC”). Under the Insured Sweep Program, your freecredit balances may be deposited at more than one bank, increasing the potential amount of FDIC insurance
available to you. The Insured Sweep Program provides up to $2.5 million of FDIC coverage for individual accounts, up to $5 million of FDIC coverage for joint accounts, up to $2.5 million for certain retirement accounts, and up to $2.5 million for
corporate accounts. You are responsible for monitoring the total amount of deposits at each Insured Sweep Program bank to determine the extent of FDIC insurance coverage available to you under this program. Other deposits, including certificates of
deposit, which you maintain directly with a program bank or through an intermediary (such as Janney or another broker) in the same capacity will be aggregated with deposits in the Insured Sweep Program for purposes of calculating the FDIC deposit
insurance coverage limit. A complete list of the banks utilized in the Insured Sweep Program is located on our website at Janney.com/cash. The above description of the availability of FDIC insurance for available cash deposited at the bank(s) is not
a comprehensive discussion of the FDIC insurance rules that may apply to your situation. Additional FDIC information may be obtained by contacting the FDIC call center at 1-877-ASK-FDIC (1-877-275- 3342, 1-800-925-4618[TDD]), by letter (FDIC, Deposit
Insurance Outreach/ Division of Supervision and Consumer Protection, 550 17th Street, N.W., Washington, DC 20129-9990), or by accessing the FDIC website at fdic.gov.
INSURED SWEEP - INTEREST RATES
All Accounts Other Than ERISA Advisory Accounts and Discretionary Advisory IRA Accounts
Interest rates paid on your cash balances swept under the Insured Sweep Program are determined daily by Janney based upon a variety of factors including the interest rate paid by the program banks on the aggregate balances of the deposit accounts, the
fees deducted by Janney out of such interest rates for certain administrative accounting, recordkeeping and other services, and prevailing economic and business conditions. Generally, the yields and rates of return for bank deposit accounts will differ
and will be tiered based on your household balance (see definition of “household” below). However, eligible advisory accounts will receive the highest interest rate available at the time of investment regardless of household balance. Interest
accrues and is compounded daily beginning on the day the bank receives funds from Janney. Accrued interest is credited to your account on the last business day of the month. If you make a withdrawal, interest will be paid through the day prior to
the day of withdrawal. As referenced above, Janney is compensated based on the difference or “spread” between the interest rate paid by the bank on the amounts deposited in the deposit account and the rates that Janney offers to its clients.
The tier applicable to your household accounts will be determined by Janney on a monthly basis calculated as of the last business day of the preceding calendar month. The interest rate tiers are currently as follows:
The interest rate tiers and tier aggregate assets levels are current as of the date referenced in the page footer to this Client Agreement but may change over time with notice to you. Cash balances in new accounts will be placed into Tier 4 through the
end of the month in which the account is opened. Thereafter, the cash balances will earn interest in accordance with the applicable tier level based on the aggregate value of the assets in your household accounts (minus any liabilities). For current
interest rate tiers and applicable interest rates, go to Janney.com/cash.
Discretionary Advisory IRA Accounts
(All Advisory IRA accounts other than Partners Advisory)
The method for calculating the interest rate on cash balances in discretionary advisory IRA accounts in the Insured Sweep Program is different from the methodology referenced above. The interest rate on these accounts is determined by the amount of interest
the program banks are willing to pay on the aggregate balances in the applicable deposit accounts minus the fees paid to Janney and other parties without regard to household size.
Janney receives a level monthly fee for each discretionary advisory IRA account in the Insured Sweep Program. This amount is determined based upon a fee schedule indexed to the Federal Funds Target (FFT) Rate. Janney’s per account monthly fee is
administratively managed to be no less than $0.50 and no more than $12.00. It is generally anticipated that Janney’s fees will be offset by the total amounts paid by the program banks. If Janney does not receive sufficient payments each month
from the banks, we reserve the right to debit the account for the amount of any shortfall. More information about the Insured Sweep Program, including the interest rate tiers and yields, is available from your Financial Advisor or by visiting www.janney.com/docs/rates.
MONEY MARKET SWEEP: Dreyfus Taxable Money Market Sweep (“Dreyfus Sweep”) and Tax-Advantaged Money Market Sweep (“TAMM”)
If you selected one of the money market funds available for your account type under the Dreyfus Sweep or TAMM, you authorize Janney to open a sweep account in the designated money market fund.
ERISA advisory accounts that participate in the Sweep Program authorize Janney to invest available cash balances in the Dreyfus Government Cash Management Fund - Institutional Shares (DGCXX). The Dreyfus Government Cash Management Fund is the only Sweep
Program option available to ERISA advisory accounts.
Your deposits in the money market sweep options will earn dividends based on the interest and income realized by the funds’ underlying investments. The dividends earned on the shares in the funds will not be payable in cash but will be reinvested
each month in additional shares of the applicable fund at the then current net asset value. Rates of return you receive on your fund selections will vary from fund to fund, because such rates are based on the investment made by the funds net of such
fund’s operating expenses. Some funds invest in certain securities, the income from which is exempt from federal and/or state income tax. The rates of return on funds will differ from the interest rates available in the Insured Sweep Program.
For a complete list of funds available to your account, please contact your Financial Advisor.
There is no guarantee that the rate of return or the yields will equal or exceed rates of return or yields available at other financial institutions or invested in other products similar to your money market fund sweep option. Yields fluctuate and past
performance is no guarantee of future results. For more information about the current rate of interest or yield you are receiving in the money market fund sweep option and current rates of return offered by other cash alternatives, please go to the
Money Market & Margin Rates link available at www.janney.com/docs/rates or contact your Financial Advisor.
Money market mutual funds are registered with the SEC pursuant to the Investment Company Act of 1940, which imposes special rules on such funds. Money market mutual funds invest in high quality, short-term securities and seek to maintain a stable net
asset value, but are subject to market risks and potential loss of value. Prior to or upon investing in a fund you will receive a prospectus describing the money market fund. You should consider the investment objectives, risks, charges and expenses
of each money market fund carefully before investing. This and other information is found in the prospectus or summary prospectus. Assets invested in money market funds are not held in bank accounts nor are they deposits of, insured or guaranteed
by, the U.S. government, any financial institution, the FDIC or the Federal Reserve Board. Investments in money market funds are covered by SIPC. Additional information about SIPC coverage is located at the end of the Client Agreement.
For all funds other than Dreyfus Government Cash Management Fund, Janney will receive a monthly fee from the money market fund, or its distributor, for distribution and shareholder services provided by Janney in connection with the sale of money market
funds available under the Dreyfus Sweep and TAMM. The fee is based on a fixed percentage rate applicable to each fund. These fees paid to Janney defray the various costs of offering the program to Janney clients, including those associated with (a)
program features, such as the daily sweep arrangement, purchases, redemptions, dividend reinvestments, and transfers; and (b) money fund investments, including sub-account, statement preparation and distribution, distribution of program materials,
and responding to investment-related inquiries.
If at any time you change your account from a brokerage account to an advisory account (other than an ERISA advisory account), you authorize Janney to change the sweep option for your account to Insured Sweep, as necessary. Additionally, if at any time
you change your account from an advisory account to a brokerage account, you authorize Janney to change the sweep option for your account to Insured Sweep, as necessary. Notwithstanding the foregoing, if you transition to an ERISA advisory account,
you authorize Janney to change your sweep option to the Dreyfus Government Cash Management Fund - Institutional Shares (DGCXX).
More information about the Sweep Program is available from your Financial Advisor.
Janney households are used to determine the level of benefits and fee waivers that will be applied to Janney accounts. A household is defined as one or more accounts with the same mailing address or Social Security/Taxpayer Identification Number that
are serviced by the same Financial Advisor or FA Team. Janney determines your household balance by aggregating the account balances that make up the household.
Additionally, a household can be “linked” to another household to receive certain benefits and fee waivers. The household with the largest asset balance will set the level of benefits and fee waivers for all accounts in the linked household
group (i.e., balances and fee waivers are not determined by the combined assets of accounts in all linked households). Households can only be linked together if the account owners in households to be linked are family members, defined for this purpose
as a grandparent, parent, child, or grandchild.
Janney is not responsible for identifying those eligible accounts that you may wish to have linked for purposes of determining your household balance. If you would like Janney to consider accounts to be linked, please notify your Financial Advisor, who
will provide you with more information on linking Janney accounts. It is your obligation to notify your Financial Advisor of accounts that you would like to be linked as a household. Janney reserves the right to approve or deny requests to link accounts
and households in its sole discretion.
You may access the value of your Sweep Account with checkwriting privileges established by Janney at BNY Mellon. Each check is a draft, which is an authorization to Janney to redeem the amount from your Sweep Account, and is payable through BNY Mellon.
There is no minimum dollar amount for checks written. Each business day, BNY Mellon will notify Janney of checks written by you and presented to BNY Mellon for payment. When notified, Janney will reimburse BNY Mellon for your checks by debiting the
Sweep Account. Cancelled checks will not be returned. You may request copies of specific checks, in which case a fee will be charged. The combined monthly account statement will list each check paid, including date written and payee name, and optional
expense codes. In the event a check is presented for an amount in excess of the Sweep Account, you may be eligible to borrow against margin through your Janney account. Check with your Financial Advisor for details. Use of the checkwriting service
is subject to applicable fees, including but not limited to, fees for stop payment on checks, checks returned for insufficient funds, wire transfers and copies of checks. These fees and charges are subject to change and additional fees and charges
may be added. All fees will be charged to your Janney Advantage® Program. To place a stop payment on a check, you must call Janney at 1-800-526-6397 and ask for Janney’s Treasury Management Services Department. Allow for a reasonable time
to act on your stop payment order. The stop payment order will remain in effect for one year. Stop payment orders may be renewed by you each successive year. Janney reserves the right to restrict the checkwriting privilege on accounts averaging more
than forty (40) checks per month.
FREE CREDIT BALANCES
Janney does not pay interest on free credit balances in Janney Accounts. However, if Janney did pay interest on free credit balances, it would only be permitted to pay interest on free credit balances arising as a result of securities trading activities
pursuant to federal law and FINRA rules. In the ordinary course of its business, Janney may use a free credit balance in your account, subject to the limitations contained in SEC Rule 17 CFR 240.15c3-3. You may demand and receive from us during normal
business hours the delivery of any free credit balances to which you are entitled, any fully paid securities to which you are entitled, or any securities purchased in your margin account upon full payment of any indebtedness to Janney. Janney may
charge you for the delivery of physical securities to you. Please see Janney’s Schedule of Account Service Charges at Janney.com for more information about this charge.
ORDER FLOW DISCLOSURE
Janney routes orders for execution to all principal exchanges and particular broker/dealers or market centers. Janney receives payment for order flow either in cash payment or in reduced clearing costs at the various exchanges. In all cases, orders are
subject to price improvement from the national best bid or offer and never are executed at less than the best bid or offer.
PARTIALLY CALLED BONDS
Per FINRA Rule 4340 (Securities Callable in Part), when bonds are called in part (i.e. – less than the entire amount outstanding is called for redemption), 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 here.
MUTUAL FUND TRANSACTIONS
Generally, Janney transacts trades in mutual funds utilizing National Securities Clearing Corporation’s Fund/SERV system. Most mutual fund business is transacted by Janney through an omnibus platform, meaning that Janney is solely responsible for
all communications with our clients relating to mutual fund trades and transaction reporting. Where we conduct mutual fund business through an omnibus platform, clients have no privileges directly with any mutual fund company. In such instances, all
mutual fund buy and sell orders must be placed through Janney, all inquiries relating to mutual fund positions must be directed to Janney, and all transaction confirmations and account statements relating to mutual fund positions will be issued by
Janney. You acknowledge that Janney will utilize an omnibus platform as the default for most mutual fund business in your account.
TRADING ON PARITY NOTIFICATION
Under New York Stock Exchange Rules, a specialist is permitted to trade on parity with orders in the crowd when the specialist is establishing or increasing his position, so long as floor brokers representing orders in the crowd do not object to such
practice. If you object to a specialist trading on parity with your order, the specialist would be obligated to honor such a request and refrain from trading on parity. Unless you inform us otherwise, Janney will handle your orders as if you have
no objections to a specialist trading on parity with your order.
Should you wish to object to this practice for all orders or certain types of orders, please notify Janney in writing at the following address: Janney Montgomery Scott LLC, Attn: Capital Markets Compliance, 1717 Arch Street, Philadelphia, PA 19103. If
you wish to object to a specialist trading on parity with an individual order, please inform your Financial Advisor when you place your order.
MARGIN ACCOUNT TERMS
If you have selected margin for your account, the following provisions shall also govern your Agreement with Janney:
Investing on margin involves the extension of credit to you, and your financial exposure could exceed the value of securities in your account. By selecting margin for your account, you acknowledge and agree that you have examined your financial situation
and needs, investment objectives and tolerance for risk, and have determined that margin financing is suitable and appropriate for you. You further acknowledge and agree that you have made this determination independently, and not solely based on
the recommendation of Janney. When you purchase securities on margin, you must provide cash (or acceptable securities having an equivalent loan value) which is at least sufficient to comply with the requirements of Regulation T of the Federal Reserve
Board. The difference between the total cost of the purchase and the cash supplied by you is the amount of Janney’s loan to you, and this is what Janney refers to as your Debit Balance. It is this Debit Balance upon which interest is charged.
Each additional purchase by you and any charges to your account add to your Debit Balance. Charges include interest charges and those that may be completely unrelated to your loan, such as charges made by a Transfer Agent for transferring your securities,
or charges for dividend claims, or interest in a cash account due to repayment of funds. Adjustment will be made to your Debit Balance for any balance you may have in a cash account you may keep with us. Interest will not be paid by Janney on any
temporary credit balance which may occur in your margin account.
Interest is charged against your Debit Balance on a daily basis, and each day’s charge is accumulated into a monthly total. Janney’s Interest Period will begin on the Thursday before the last Friday of the prior month and end with the Wednesday
before the last Friday of the current month. Therefore, in verifying Janney’s interest charge, it is necessary to use your prior month’s statement. The computation is made as follows:
(1) List the Net Debit Balance in your account and the Rate of Interest on the first day of the Interest Period.
(2) Note the number of days this Net Debit Balance and the Rate of Interest remained unchanged.
(3) List each succeeding new Net Debit Balance or each change in the Rate of Interest and the number of days both the Net Debit Balance and the Rate of Interest remained unchanged until you have accounted for each day of the Interest Period.
(4) Finally, to compute the interest charged to your account for the Interest Period, multiply each Net Debit Balance by the Rate of Interest then in effect and by a fraction, the numerator of which is the number of days that particular Net Debit Balance
and Rate of Interest remained unchanged, and the denominator of which is 360. The sum of these products equals the interest charged for this Interest Period.
Janney’s monthly statement shows (1) the Opening Balance of the Statement Period, (2) the Closing Balance of the Statement Period, and (3) your Rate of Interest (or, if there was a change during the month, your Rates of Interest) and the amounts
of interest charged at each Rate. Please note again that to use these figures to verify the interest charged to your account in any month, you will need not only the statement for that month but also the statement for the month preceding it.
Under certain circumstances, interest may be charged on an account even though the statement does not indicate a Debit Balance. This situation will arise when the proceeds of a sale have been paid to you prior to the firm’s receipt of “good
delivery” stock. This situation also will arise if you make “good delivery” prior to settlement date and also accept payment prior to settlement date, in which case interest will be charged up to the settlement date.
No charges other than those described above will be made to your margin account as a result of Janney having loaned money to you.
You also acknowledge and agree that the securities purchased on margin are Janney’s collateral for the loan to you. If the securities in your account decline in value, so does the value of the collateral supporting your loan. As a result, Janney
can take action, such as issuing a margin call or selling securities or other assets in any of your accounts held at Janney, in order to maintain the required equity in your account, except that Janney shall not use assets in an IRA or ERISA account
to satisfy requirements in a non-IRA or non-ERISA account and vice versa. You understand the following risks associated with the use of margin in your account: (i) You can lose more funds than you deposit in the margin account if the value declines;
(ii) Janney has the right to force the sale of securities or other assets in your margin account; (iii) Janney may notify you of a margin call and allow you a few days to meet the call, but Janney may also sell your securities without contacting
you; (iv) You are not entitled to choose the securities or other assets that will be liquidated in your account to meet a margin call; and (v) Janney can increase maintenance margin requirements at any time and does not have to grant you an extension
of time on a margin call.
(A) All transactions between you and Janney shall be subject to the rules and customs of the market or exchange (and its Clearing House, if any) where executed. Janney may employ sub-brokers and shall be responsible for reasonable care in our selection.
(B) All monies, securities, or other property which Janney may at any time be carrying for you or which may at any time be in Janney’s possession for any purpose, including safekeeping, shall be subject to a general lien for the discharge of
all your obligations, irrespective of whether or not Janney has made advances in connection with such securities, or other property, and irrespective of the number of accounts you hold with Janney. Your monies, securities, or other property may
be carried in Janney’s general loans without notice to you and without regard to whether or not Janney has made advances with respect to such monies, securities or other property. Except as prohibited under applicable law, securities in
your account may be pledged, re-pledged, hypothecated or re-hypothecated, separately or in common with other securities or other property. In the event of your death, your estate shall be liable and each of your heirs, executors, administrators,
representatives, successors and assigns shall continue to be liable, jointly and severally, to Janney for any Net Debit Balance or loss in your account in any way resulting from the completion of transactions initiated prior to the receipt by
Janney of the written notice of your death or incurred in the liquidation of the account or the adjustment of the interests of the respective parties.
(C) Any liability owed by you to Janney shall be secured by your stocks and/ or securities held by Janney, and Janney is hereby authorized without having in its possession or subject to its control other stocks and/or securities of the same kind and
amount and without notice to you, to loan and re-pledge the same (either for the amount due from you or for a greater sum), from time to time, separately or together with other stocks and/or securities.
(D) You acknowledge that interest Janney may charge may exceed the rate permitted by the laws of the state in which you reside. You specifically agree to waive any rights that you might otherwise have under such laws and consent that the permissible
rate of interest is to be governed by the laws of the Commonwealth of Pennsylvania. Janney may charge monthly, as interest or otherwise, such sums to compensate it for advances made on your account at the prevailing and/or allowable rates according
to the laws of the Commonwealth of Pennsylvania, as Janney may determine from the date of acceptance of this Agreement and thereafter.
(E) If deemed necessary by Janney, in its discretion, for its protection in connection with the credit Janney has advanced to you, Janney is authorized to sell any or all of the stocks or securities which may be in its possession, or which Janney
may be carrying for you (either individually or jointly with others), or to buy in any stocks or other securities, of which your account may be short, or cancel any outstanding orders in order to close out any commitment made on your behalf. Such
sales and/or purchases may be made on the exchange or other market where such business is usually transacted or at public or private sale, without advertising the same. Janney may make such sale, purchase or cancellation without notice to you
and without prior tender, demand or call of any kind upon you. Janney may purchase the whole or any part of such stocks or other securities, in whole or in part free from any right or redemption, in which event you will remain liable for any deficiency.
(F) You agree to maintain the required margin in the account, as established by Janney from time to time. If there is a decline in the market value of the stocks and bonds which are the collateral securing the Debit Balance in your account, it may
become necessary for Janney to request additional collateral in accordance with the rules and regulations of the Financial Industry Regulatory Authority (“FINRA”) and any other regulatory agency to whose jurisdiction Janney is subject,
and Janney may also, but shall have no obligation to, require you to deposit such additional collateral as Janney, in its sole discretion, determines is needed as security for your obligation to Janney. FINRA requires that a client must maintain
equity of 25% in a margin account. (The equity is the amount by which the market value of the securities in the account exceeds the Debit Balance.) For a margin account with a good diversification of investment grade securities, Janney normally
requests additional margin when the equity falls below 30% of the account’s total market value. In accounts where a single security constitutes most of the collateral, or where the securities are speculative or low in price, Janney normally
requires that the equity be maintained at 50% or more of the total market value. Irrespective of these maintenance rates, however, Janney retains the right to require additional margin whenever Janney considers it advisable to do so. Margin calls
can be met by delivery to us of cash or of additional acceptable securities.
(G) Janney may at any time terminate all of your accounts and thereupon all amounts advanced and other balances due, with interest, and commissions shall be due and payable to Janney.
(H) In the event you sell any security or other property and Janney is unable to deliver the same to the purchaser by reason of your failure to supply Janney therewith, then you authorize Janney to borrow any security or other property necessary to
make delivery thereof, and you hereby agree to be responsible for any loss which Janney may sustain by reason of its inability to borrow the security or other property sold.
(I) Except as prohibited under applicable law, at any time and from time to time, in Janney’s discretion, Janney may without notice to you apply and/or transfer any of your monies, securities and/or other property between any of your accounts.
Any debit occurring in any of your accounts may be transferred by Janney, at its option, into your margin account.
(J) When placing with Janney any sell order for a short account, you will designate it as such and you hereby authorize Janney to mark such order as being “short.” When placing with Janney any order for a long account, you will designate
it as such and you hereby authorize Janney to mark such order as being “long.” Any sell order that you shall designate as being for a long account will be for securities then owned by you, and, if such securities are not then deliverable
by Janney from any of your accounts, the placing of such order shall constitute a representation by you that it is impracticable for you to deliver such securities to Janney but that you will deliver them as soon as it is possible for you to do
so without undue inconvenience or expense.
(K) In all transactions between you and Janney, you understand that Janney is acting as your broker, except when Janney discloses to you in writing at or before the completion of a particular transaction that Janney is acting, with respect to such
transaction, as dealer for its own account or as broker for some other person.
(L) The following is the annual interest rate that will be charged on Debit Balances (effective July 1, 2013):
Janney charges margin interest based on the Janney Base Rate. The Base Rate is an internally calculated rate established by Janney and changes from time to time based on Janney’s cost of funds as well as Janney’s assessment of the rates
charged in the financial markets. The interest rate that you will be charged for borrowing on margin will increase or decrease as the Base Rate increases or decreases. The Base Rate will be published on Janney’s website and is subject to
change without notice to you.
(M) Until Janney receives written notice of revocation from you, Janney is hereby authorized to lend, to Janney as a broker/dealer or to others any securities held by Janney on margin for your account, or under your control. In the event that your
securities have been loaned by Janney on the record date of a shareholder vote involving those securities, you agree that your vote may be reduced or eliminated based on the total amount of securities which are being loaned by Janney. In the event
that your securities have been loaned by Janney after the ex-dividend date, you agree to accept a payment in lieu of a dividend. This payment will be reported by Janney as ordinary income, which may cause you to lose the benefit of preferential
tax rates on dividends.
(N) When a short sale is undertaken, the security is borrowed in order to effect delivery on the settlement date of the trade. From time to time, it is possible, that as a result of a security being difficult to borrow, a fee may be assessed by the
lender of a stock that the borrower must pay to establish and or maintain a short position in the security. In these instances, the security is said to be subject to a negative rebate charge. The amount of the negative rebate charge is a percentage
of the market value of the short position. That a negative rebate charge is in effect does not remove the possibility that the short position may be bought back in, with or without prior notification to you. Please note that Janney may not be
in a position to advise you of these charges in advance of the actual billing cycle that occurs each month. You may, however, ask your Financial Advisor to find out if a short position is subject to a negative rebate, and if so, at what rate.
(O) By opening this account, you agree that Janney may obtain credit reports on each account owner and may report history on this account to consumer credit reporting agencies.
(P) For purposes of a margin account, all monies, securities and other property held in an IRA or ERISA account shall not be subject to a general lien for the discharge of obligations or used as collateral to secure liabilities, obligations or indebtedness,
except to the extent there are liabilities, obligations or indebtedness owed or incurred with respect to that IRA or ERISA account.
BUSINESS CONTINUATION SUMMARY
Janney Montgomery Scott maintains a business continuity policy and plan to respond to any disruption of business operations. The plan safeguards our employees’ lives, securely protects both firm and client data and information, and ensures that
procedures are in place to quickly assess, recover, and resume operations—allowing Janney clients to continue to transact business.
Our plan includes the following:
- Backup technical and operational facilities in diverse geographic locations, redundant data centers, alternate standby and processing facilities, vendor redundancies, and telecommunications provided through diverse carriers.
- Continuous systems testing to ensure that critical activities, applications, and processes are functional.
- An electronic notification system to communicate with employees through diverse methods, and secure remote network access only for authorized individuals.
- A complete test of our business continuity plan occurs at least once a calendar year, incorporating intermittent systems, personnel, and operational testing occurring during the course of the year. Further information regarding the firm’s
business continuity plan is available upon request.
MARGIN DISCLOSURE STATEMENT
Janney Montgomery Scott LLC (“Janney”) is furnishing this notification to you to provide some basic facts about purchasing securities on margin, and to alert you to the risks involved with trading securities in a margin account. Before
trading securities in a margin account, you should carefully review the margin agreement. Consult your Financial Advisor regarding any questions or concerns you may have with your margin account.
When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from Janney. If you choose to borrow funds, you will open a margin account. The securities purchased are Janney’s collateral for
the loan to you. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and as a result, Janney can take action, such as issue a margin call and/or sell securities or other assets in your
account in order to maintain the required equity in the account.
It is important that you fully understand the risks involved in trading securities on margin. These risks include the following:
- You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to provide additional funds to Janney to avoid the forced sale of those securities or other
securities or assets in your account.
- Janney can force the sale of securities or other assets in your account. If the equity in your account falls below the maintenance margin requirement or the firm’s higher “house” requirements, Janney can sell the securities
or other assets in your account to cover the margin deficiency. You also will be responsible for any shortfall in the account after such sale.
- Janney can sell your securities or other assets without contacting you. Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that the firm cannot liquidate securities or other assets in their
accounts to meet the call unless the firm has contacted them first. This is not the case. Janney will attempt to notify our customers of margin calls, but we are not required to do so. However, even if you are contacted and provided a specific
date by which the call must be satisfied, the firm can still take necessary steps to protect its financial interests, including immediately selling the securities without notice to the customer.
- You are not entitled to choose which securities or other assets in your account are to be liquidated or sold to meet a margin call. Because the securities are collateral for the margin loan, Janney has the right to decide which security to
sell in order to protect its interests.
- Janney can increase its “house” maintenance margin requirements at any time and is not required to provide you advance written notice. These changes in firm policy often take effect immediately and may result in the issuance of
a maintenance margin call. Your failure to satisfy the call may cause Janney to liquidate or sell securities in your account.
- You are not entitled to an extension of time on a margin call. While an extension of time to meet margin requirements may be available to customers under certain conditions, a customer does not have a right to the extension.
As a valued client, the assets in your account are protected in several ways. You are protected by Janney’s strict compliance with the Securities and Exchange Commission (“SEC”) customer protection rules. You also have account protection
resulting from Janney’s membership in the Securities Investor Protection Corporation (“SIPC”). As a client of Janney, you also receive additional insurance supplementing SIPC coverage, which is provided to you at Janney’s
SEC CUSTOMER PROTECTION RULE
The customer protection rule (SEC Rule 15c3-3) requires that broker/dealers segregate all fully-paid customer securities from those securities used in our dayto- day business. Additionally, nearly all of our customers’ physical certificates
are held in industry-owned central depositories under the control of an independent entity, the Depository Trust Company. Rule 15c3-3 also requires that we deposit cash or qualified government securities in a separate bank account restricted for
the exclusive benefit of customers in an amount sufficient to cover customer account net cash balances.
SIPC is a nonprofit membership corporation formed by the U.S. Congress in 1970 to provide certain financial protection to clients of member securities firms. SIPC protection would ensure delivery of the portfolio assets to each eligible account up
to $500,000 in value (not more than $250,000 in cash) in the case of financial failure of a SIPC member firm. SIPC has published a brochure further explaining the coverage provided. If you would like a copy, please contact your Janney Financial
INSURANCE IN EXCESS OF SIPC COVERAGE
Insurance in excess of SIPC coverage for your account will be obtained through certain underwriters at Lloyd’s of London. In the highly unlikely event that our firm should ever fail and your client assets not be recovered through the firm or
under SIPC protection limits, this additional insurance becomes available to cover your account subject to a limit of $24.5 million per client and an aggregate loss limit of $100 million. If you maintain more than one account at Janney in separate
capacities (i.e., individually, jointly, as a trustee), each account would be protected by SIPC and the insurance in excess of SIPC coverage. Lloyd’s of London is the world’s leading insurance market. Lloyd’s is currently rated
A+ and A by Standard & Poor’s and A.M. Best, respectively.
You may obtain more information about SIPC, including the SIPC brochure regarding investor protection, by visiting SIPC’s website, www.sipc.org, or by calling SIPC at 202-371-8300. You may also contact your
Janney Financial Advisor to request a copy of the SIPC brochure regarding investor protection.
Janney Montgomery Scott LLC
1717 Arch Street
Philadelphia, PA 19103
Terms & Conditions
Electronic Delivery Of Investor Communications
As a convenience to our clients, Janney Montgomery Scott, LLC (“Janney”) offers periodic account statements, transaction confirmations, other “Investor Communications”, and Tax Forms electronically. Participation in eDelivery
requires participation in Janney’s Online Access Service and agreement to its applicable requirements and separate agreement upon registering with Janney’s Online Access Service.
Investor Communications: “Investor Communications” is defined as all current and future client account statements, Form ADV Part 2 or equivalent brochures (for Janney and third-party investment managers), transaction confirmations,
performance reports, notices, disclosures, quarterly, semiannual and annual reports, proxy statements, prospectuses and other offering documents or materials, Form ADV Part 2 or equivalent brochures, newsletters, regulatory communications (including
without limitation privacy notices, and other information, documents, data and records) and any and all other communications or materials provided pursuant to the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company
Act of 1940, and the Investment Advisors Act of 1940, and the rules adopted under these laws, as well as regulations of the U.S. Securities and Exchange Commission, the U.S. Department of Labor, the Financial Industry Regulatory Authority, the
U.S. Commodity Futures Trading Commission, the National Futures Association, or any other regulatory authority with respect to a service or product related to your Janney account.
Tax Forms: All references herein to “Tax Forms” include Consolidated 1099 Forms (which include the information on Forms 1099-B, 1099-DIV, 1099-INT, 1099-MISC, 1099-OID), 1099-R Forms, 1099-REMIC/WHFIT Forms, 1042-S Forms,
5498 Forms, 990-T Forms, and any other tax-related forms required by law or regulation by the Internal Revenue Service, applicable State(s) Department of Revenue entity, or any other applicable regulatory authority.
HOW TO SIGN UP
By selecting the applicable eDelivery option(s) through the MyJanney.com eDelivery enrollment form and providing Janney your e-mail address, you are consenting to the electronic delivery of your Investor Communications and Tax Forms as the default
method of delivery of such account documentation. You are further consenting that you can access these documents in the methods and formats described below via applicable software and hardware required to enable such access.
YOU MAY REVOKE EDELIVERY PREFERENCES AT ANY TIME by contacting your Financial Advisor, local Janney branch, or by logging in to your MyJanney account and de-selecting the eDelivery option.
ACCESSING INVESTOR COMMUNICATIONS
If you choose electronic delivery, your Investor Communications will be made available by Janney on a secure website (www.myjannney.com). Janney will send you an email notifying you when information becomes
available on the secure website, and containing a link that will direct you to the sign-on screen for the secure website. After you have entered your log-in username and password, you will be able to view, print, and download the Investor Communication(s)
for which the email notification was sent. Janney will retain electronic copies of Investor Communications on the secure website for a period of at least 24 months.
ELECTRONIC DELIVERY FORMAT
Investor Communications will be presented in “pdf” file format on the secure website, and you will need to have Adobe Acrobat Reader installed on your computer to access the information. If you do not have Adobe Acrobat software, Janney
will provide you with a link for downloading such software in the footer of the secure website. In order to download and install Adobe Acrobat Reader, you must have the proper rights and privileges to download and install a program on your computer.
Our website footer displays the link labeled “http://www.adobe.com/downloads”; click that link and it will take you to the Adobe.com website. Follow the directions to download the most recent version of Acrobat Reader. Once the program
is downloaded, run the program and follow the prompts.
HARDWARE AND SOFTWARE REQUIREMENTS
You will need certain hardware and software, and may incur certain costs, in connection with the electronic delivery of your account records. For example, you will need access to a computer with a web browser and email software to access your account
documents electronically, and you must also have access to the Internet. Further, you may incur costs such as internet provider costs and the costs associated with printing your own paper copies. Such hardware, software, and any other costs shall
be your sole responsibility, and Janney shall not be responsible for providing such hardware or software, or reimbursing you for any costs, in order to allow you to participate in the electronic delivery service.
REQUESTING PAPER DOCUMENTS & OPT-OUT
You may request paper or electronic copies of Investor Communications and/or Tax Forms at any time by contacting your Financial Advisor. The electronic delivery of your Investor Communications and/or Tax Forms shall continue until you
affirmatively opt out of this service or until Janney is unable to deliver e-mail notifications to the email address specified by you. You may opt out of eDelivery service at any time by contacting your Janney Financial Advisor.
Janney will immediately commence paper delivery of Investor Communications and/or Tax Forms upon revocation of your consent to such service. In order to avoid cancellation of Online Access Service or eDelivery, you must immediately notify Janney
of any change to the email address specified for such service. If your email address is invalid or if it repeatedly rejects eDelivery of information, eDelivery service will be cancelled and you will receive paper copies via regular mail of the
documents Janney was unable to deliver electronically. You may re-enroll at any time by accessing the secure website and providing a valid email address and accepting the terms and conditions of the Online Access Service. Neither your revocation
nor restriction of consent, your request for paper delivery, nor Janney’s delivery of paper copies affects the legal effectiveness or validity of any electronic communications provided while your consent was in effect.
SPECIAL NOTE FOR EDELIVERY OF TAX FORMS:
Janney also offers electronic delivery of Tax Forms separately from other Investor Communications. By selecting the eDelivery option on the Tax Form box through the MyJanney.com eDelivery enrollment form, you are consenting to the electronic delivery
of ALL your applicable tax forms for the account(s) specified. Please note, consenting to eDelivery for Tax Forms WILL create a default method of delivery for future tax forms. If you have multiple accounts at Janney, you must consent to Tax Form
eDelivery for each account separately. For any future Tax Forms, if you have not previously consented to this agreement, you must consent by the time of tax form production for the Tax Year. Different types of Tax Forms (ex. Form 1099-R) may have
different eDelivery enrollment deadlines. Should you choose not to take advantage of the electronic delivery option, you will receive a paper copy of your applicable Tax Form(s).
SPECIAL NOTE FOR MUNICIPAL SECURITY TRANSACTIONS:
Municipal Access Equals Delivery
For Municipal securities transactions executed at Janney, the confirmation you receive will expressly state that you can obtain the Official Statement and material information, including material events by accessing the Municipal Securities Rulemaking
Board (MSRB) EMMA website: www.EMMA.MSRB.org. From this website you have the ability to download and view the Official Statement and any additional pertinent disclosure information regarding the municipal
bond. Additionally, in accordance with MSRB Rule G-32, as a customer you may request a printed copy of the official statement, and/or request that you receive printed copies for all applicable purchases of a new issue municipal security by contacting
your Janney Financial Advisor.
WHAT DOES JANNEY MONTGOMERY SCOTT LLC DO WITH YOUR PERSONAL INFORMATION?
Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some, but not all, sharing. Federal law also requires us to tell you how we collect, share and protect your personal information. Please
read this notice carefully to understand what we do.
The types of personal information we collect and share depend on the product or service you have with us. This information can include:
• Social Security number, name, address, email address, income and assets
• Payment and transaction history and account balances
• Employment and credit information and risk tolerance
When you are no longer our customer, we continue to share your information as described in this notice.
All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information, the reasons Janney Montgomery
Scott LLC chooses to share, and whether you can limit this sharing.
What We Do
How does Janney protect my personal information? To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
Janney Associates are trained in the proper handling of nonpublic client information.
How does Janney collect my personal information?
We collect your personal information, for example, when you:
• Open an account or provide employment information
• Give us your income information or contact and employment information
• Seek advice about your investments
We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?
Federal law gives you the right to limit only:
• Sharing for affiliates’ everyday business purposes—information about your creditworthiness
• Affiliates from using your information to market to you
• Sharing for non-affiliates to market to you
State laws and individual companies may give you additional rights to limit sharing.
Call 800-JANNEYS and ask to speak with Janney’s Privacy Officer, or email PrivacyOfficer@Janney.com.
Who We Are
Janney Montgomery Scott LLC is a full-service regional securities broker/dealer, serving customers through a comprehensive network of branch offices primarily in the Eastern United States. Janney headquarters are located at 1717 Arch St, Philadelphia
• Janney offers clients a complete range of investment vehicles, from individual securities to mutual funds, insurance, money management and other fi nancial service products.
• Janney also provides investment banking services to corporations and institutional clients.
Janney holds the professional investment manager Janney Capital Management LLC as an affiliate organization.
Janney is an independently operated subsidiary of The Penn Mutual Life Insurance Company along with Penn Mutual’s other affiliates, Penn Mutual Asset Management LLC and Horner, Townsend and Kent, Inc.
Other Important Information
If your financial advisor’s affiliation with Janney ends and they join another broker-dealer, your financial advisor may be permitted to have limited information in order to contact you to join their new firm. The information they may have is
limited to your name, address, email address, phone number and account title.
Customer Identification Program
In accordance with the USA Patriot Act, Federal law requires all financial institutions to obtain, verify and record information that identifies each individual or entity opening an account. This includes all personal and commercial accounts, including
trust, brokerage, insurance and investment management accounts.
What this means to our clients
When you open an account, you will be asked to provide your name, address, Social Security or Tax identifi cation number, applicable date of birth, and other information that will allow Janney to identify you, and you will be asked to provide identifying
documents to verify that information.
Information for Specific Locations
Nevada: In accordance with Nevada law, we are providing the following contact information: Bureau of Consumer Protection, Offi ce of the Nevada Attorney General 555 East Washington Avenue., Suite 3900, Las Vegas, NV 89101 Phone number:
702.486.3132 By email: BCPINFO@ag.state.nv.us. Or via: http://www.ag.nv.gov
Vermont: If you are a Vermont Resident, we will not disclose information about your creditworthiness to our affiliates and will not disclose any of your information to non-affiliated third parties to market to you, unless we request
your consent and you authorize us to make those disclosures, in accordance with Vermont law.
California: If you are a California resident, we will limit sharing the information we collect about you within our companies and affiliates in accordance with California law. For example, we may share information with your consent,
to service your accounts, or to provide entitled rewards or benefi ts, limited to the extent required by California law.
European Union: Janney understands that our EU customers count on us to protect their valuable personal data, and we will continue to keep you advised of the measures we take to protect your data. We are reviewing our practices in
light of the European Union’s General Data Protection Policy (GDPR). In addition to the information in this privacy notification regarding access to and disclosure of your data, our data management policies for privacy and information security
address issues such as:
(i) our collection of client data and how it is stored and processed
(ii) data protections and who has access
(iii) our ability to respond to client requests related to their data
You can also email PrivacyOfficer@Janney.com or call 800-JANNEYS and ask to speak with Janney’s Privacy Officer.