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The Internet has given individual investors unprecedented access to
information and their brokerage accounts. While breakthroughs in technology
have increased control of assets and simplified trading, effectively and
wisely using this power requires that investors take a more active role, which
includes becoming as knowledgeable as possible.
While on-line trading continues to become a more popular and reliable way to
trade, there are a number of market and technology related variables that you
should be aware of when placing orders. Before investing, you must also
understand that these variables create potential problems including, but not
limited to, order outcomes. These variables include, but are not limited to:
 | Volatility and Fast Markets |
| Computer & technology flaws and failures |
| Trading regulations resulting in non-acceptance of orders
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Electronic Access Policies Disclosure
THIS DOCUMENT CONTAINS IMPORTANT TERMS AND CONDITIONS THAT APPLY TO ELECTRONIC
ACCESS BROKERAGE ACCOUNTS MAINTAINED WITH OMNIVEST INC./KULLBACK STOCKBROKERS
(“KULLBACK STOCKBROKERS”) AND CARRIED BY FISERV SECURITIES, INC. (“FSI”).
THE TERMS AND CONDITIONS CONTAINED HEREIN SUPERSEDE AND REPLACE ANY
CONFLICTING TERMS AND CONDITIONS CONTAINED IN ANY PRE-EXISTING AGREEMENTS OR
DOCUMENTS, INCLUDING BUT NOT LIMITED TO CUSTOMER ACCOUNT AGREEMENTS, MARGIN
AGREEMENTS, AND OPTIONS TRADING AGREEMENTS PREVIOUSLY ENTERED INTO BETWEEN YOU
AND KULLBACK STOCKBROKERS. PLEASE READ THIS STATEMENT CAREFULLY AND RETAIN IT
FOR YOUR FUTURE REFERENCE. YOUR ACCEPTANCE OF THE TERMS AND CONDITIONS
CONTAINED IN THIS STATEMENT WILL BE INDICATED BY YOUR DECISION TO CONTINUE
CONDUCTING BUSINESS WITH KULLBACK STOCKBROKERS.
USAGE OF ON-LINE SERVICES:
Account holder(s) agree to use the Omnivest Inc./Kullback Stockbrokers (Kullback Stockbrokers)
on-line services (collectively, the “Service”), and any additional
services offered through the Service in the future, only in accordance with
the Kullback Stockbrokers New Account Agreement and Policies and Procedures
enumerated. Account holder(s) shall be the only authorized users of the
Service under this Agreement. Account holder(s) shall be responsible for the
confidentiality and use of the User ID, sign-on password, trading password,
and PIN number. Account holder(s) shall be solely responsible for all orders
entered through the Service using the User ID, sign-on password, trading
password, and PIN number. Account holder(s) understand and agree that, as a
condition of using the Service to place orders and send/receive information,
account holder(s) accept full responsibility for the monitoring of the
account(s), and that account holder(s) shall immediately notify Kullback Stockbrokers
if: (a) an order has been placed through the Service and have not received an
order number; (b) an order has been placed through the Service and account
holder(s) have not received an accurate acknowledgment (whether through hard
copy, electronic or verbal means) of the order or of its execution within 5
business days; (c) account holder(s) have received acknowledgment (whether
through hard copy, electronic or verbal means) of the existence of or an
execution for an order which they did not place, or any similar conflict; or
(d) account holder(s) become aware of any unauthorized use of the User ID,
sign-on password, trading password, or PIN number; or (e) there is a
discrepancy in the account balance or securities positions. If account
holder(s) fail to notify Kullback Stockbrokers as soon as practicable when any
of the above conditions occur, neither Kullback Stockbrokers nor any of its
officers, employees, agents, affiliates or subsidiaries can or will have any
responsibility or liability to the account holder(s) or to any other person
whose claim mayarise with respect to the handling, mishandling or loss of any
order. Any liability arising out of any action or omission by Kullback Stockbrokers
to account holder(s) hereunder shall be limited to an amount equal to the
benefit which would have resulted from the transaction during the five (5)
business days in which the account holder(s) should have acted. Account
holder(s) agree that Kullback Stockbrokers and its affiliates will not be
liable for any consequential, incidental, special, or indirect damage
(including lost profits, trading losses and damages) that result from
inconvenience, delay or loss of the use of the Service even if Kullback Stockbrokers
has been advised of the possibility of such damages.
ALTERNATIVE ACCESS:
Kullback Stockbrokers offers you various ways of accessing your account,
including live broker, and Internet connection. Account holder(s) agree that
should they experience any problems in reaching Kullback Stockbrokers through
any particular method, account holder(s) will attempt to use alternate methods
to communicate with Kullback Stockbrokers.
EXTRAORDINARY EVENTS:
Kullback Stockbrokers shall not be liable for loss caused directly or
indirectly by conditions beyond the control of Kullback Stockbrokers,
including, but not limited to, war, natural disasters, government
restrictions, exchange or market rulings, suspension of trading, strikes,
interruption of communications or data processing services, or disruption of
orderly trading on any exchange or market. Kullback Stockbrokers shall not be
responsible for, and makes no warranties regarding, the access, speed or
availability of Internet or network services.
PROCEDURES REGARDING ACCEPTANCE OF CUSTOMER’S ORDERS:
Customer’s instructions to buy or sell securities may not constitute
acceptance by Kullback Stockbrokers simply because of receipt of instructions
by a Kullback Stockbrokers representative or electronic order entry medium. In
certain instances and at Kullback Stockbrokers’s sole discretion, orders are
deemed accepted only after they have been approved by Kullback Stockbrokers’s
compliance department or its designated compliance representatives. Kullback Stockbrokers
will not be held responsible for delays in accepting customer’s orders to
buy or sell securities resulting from the need to obtain the prior approval of
its compliance officials before a particular order may be entered. In periods
of extreme market volatility and heavy trading volume, Kullback Stockbrokers
reserves the right, at its sole discretion, to limit and restrict the types of
orders it will accept from its customers, and to limit the method of
acceptable order entry on certain securities. Also in such periods, various
exchanges may limit the types of orders they will accept. For example, under
certain unusual circumstances, Kullback Stockbrokers may decline to accept
Good ‘Till Canceled orders (“GTC”) and Stop orders. Further, Kullback Stockbrokers
retains the right, at its sole discretion and without prior notice, to
prioritize the entry of customer orders, for example giving market orders a
higher priority than limit orders. Customer price limit orders placed in
increments not accepted by the primary marketplace will be adjusted to the
nearest acceptable price that is more beneficial to the customer upon
execution. Buy orders placed in Individual Retirement Accounts may be adjusted
based upon available funds in the account to ensure that no overspending
occurs. This adjustment may take the form of either a limit on shares ordered
or a limited price stipulation, even on market orders, at Kullback Stockbrokers’s
sole discretion. Accounts with regulatory restrictions on margin purchasing
may be restricted to one day only buy orders and/or limit buy orders may be
restricted to approved funds available.
DEPOSIT OF EQUITY:
Kullback Stockbrokers may require full payment or an acceptable deposit prior
to the acceptance of any order. For orders involving low priced securities, Kullback Stockbrokers
requires payment in advance for purchases and securities in advance for sales.
For options orders, Kullback Stockbrokers requires cleared funds in the
account prior to the acceptance of any purchases or stock certificates prior
to acceptance of orders writing covered calls.
PROCEDURES REGARDING GOOD UNTIL CANCELLED ORDERS:
Unless otherwise stipulated, all orders are day orders only. Good ’till
Canceled (“GTC”) or open orders, as they are commonly referred to, are
accepted for a period of 120 days unless otherwise instructed. At the end of
120 days, the GTC order is automatically canceled unless otherwise instructed. It is the client’s
responsibility to re-enter the order if so desired. In addition, should the
price of a GTC (or any other) order be too far away from the then existing
market price, Kullback Stockbrokers reserves the right not to accept the order
or to cancel the order at our own discretion. It is the client’s responsibility to keep track of GTC orders. Kullback Stockbrokers's
inability or failure to contact you by telephone to advise account holder(s)
of an execution does not excuse account holder(s) from the obligation to make
payment or delivery of securities by settlement date.
ORDER CANCELLATION AND CHANGE REQUESTS, LATE AND CORRECTED REPORTS:
When you place a request to cancel or change an existing order, the
cancellation or change of stipulated terms is not guaranteed. Your order will
only be canceled or changed if your request is received in the marketplace and
matched up with your order before your order executes. Market orders are
subject to immediate execution. During market hours, it is rarely possible to
cancel your market order. For the best chance of ensuring that a market order
is canceled, a cancellation request should be placed at least fifteen minutes
prior to the opening of the market. Do not assume that any order has been
executed or canceled until a transaction confirmation has been received from Kullback Stockbrokers.
Also, please be aware that Kullback Stockbrokers, from time to time, receives
late reports from exchanges and market makers reporting the status of
transactions. Accordingly, you will be subject to late reports related to
orders that were previously unreported to you or reported to you as being
expired, canceled or executed. In addition, any reporting or posting errors,
including errors in execution prices, will be corrected to reflect what
actually occurred in the marketplace.
DUPLICATION OF ORDERS:
When making changes to an existing unexecuted order, or attempting to make a
trade that is subject to a prior unexecuted order, it is the customer’s
responsibility to advise a Kullback Stockbrokers representative, at that time,
that a prior unexecuted open order is being changed or canceled. Changes to
existing orders placed using electronic medium must utilize the "Change
Existing Order" function. Account holder(s) failure to advise Kullback Stockbrokers
that they are changing or canceling an existing order will result in the prior
order remaining outstanding and subject to execution for the account and risk
of the account holder(s). Kullback Stockbrokers will not be held responsible,
financially or otherwise, for losses resulting from the failure of a customer
to advise Kullback Stockbrokers that a prior unexecuted order is being
canceled or changed.
PROCEDURES REGARDING STOCK SPLITS, OPTION CONTRACT ADJUSTMENTS AND SYMBOL
CHANGES:
If a stock split (forward or reverse), an option contract term adjustment, or
a symbol change has become effective, Kullback Stockbrokers will make its best
efforts to promptly adjust the customers' accounts. An adjustment which has
not been affected on FSI's database may prevent the customer from affecting
transactions in the security. In such case, the customer must inform Kullback Stockbrokers
immediately. It is the customer's responsibility to be aware of their actual
positions, selling or purchasing securities in excess of those owned, and the
result of doing so, which may include, but not limited to, margin calls.
RECONCILING OF POSITIONS AND BALANCES
Customers with account activity should reconcile balances and positions daily
against their Trade Confirmations and monthly against their Monthly
Statements. Kullback Stockbrokers should be notified immediately if there is a
discrepancy.
Orders may not be placed, adjusted or cancelled via e-mail, by fax, nor by
leaving a voice mail message. Orders may be placed only on the Kullback Stockbrokers
system or by speaking to a Kullback Stockbrokers Representative.
MARKET DATA:
Each participating national securities exchange or association asserts a
proprietary interest in all of the market data it furnishes to the parties
that disseminate the data. Account holder(s) understand that neither any
participating national securities exchange or association nor any supplier of
market data guarantees the timeliness, sequence, accuracy, or completeness of
market data or any other market information, or messages disseminated by any
party. Neither Kullback Stockbrokers nor any dissemination party shall be
liable in any way, and account holder(s) agree to indemnify and hold harmless Kullback Stockbrokers
and such disseminating party, for (a) any inaccuracy, error, or delay in, or
omission of (i) any such data, information, or message or (ii) the
transmission or delivery of any such data, information, or message; or (b) any
loss or damage arising from or occasioned by (i) any such inaccuracy, error,
delay, or omission, (ii) nonperformance, or (iii) interruption of any such
data, information, or message, due either to any negligent act or omission by Kullback Stockbrokers
or any dissemination party or to any “force majeure” (i.e., floods,
extraordinary weather conditions, earthquake, or other act of God, fire, war,
insurrection, riot, labor dispute, accident, action of government,
communications, power failure, or equipment or software malfunction) or any
other cause beyond the reasonable control of Kullback Stockbrokers or any
dissemination party. Account holder(s) understand that the terms of this
Agreement may be enforced directly against account holder(s) by the national
securities exchanges and associations providing market data. Account holders
shall use real-time quotes only for individual use and shall not furnish such
data to any other person or entity. |
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