Regulatory Disclosures
1. USA PATRIOT Act – Verification of Identity
FBN Securities, Inc. (“FBN”) is required to establish and maintain an Anti-Money Laundering Program (“AML”) in accordance with the provisions set forth under the U.S. PATRIOT ACT to assist the U.S. government in the fight against the funding of terrorism and to prevent money laundering activities. Federal law requires that all financial institutions obtain, verify, and record certain information that will be utilized to verify the identities of customers when opening an account.
Entity Accounts
For entity accounts, other than a natural person (e.g., a corporation, partnership, limited liability company, etc.), FBN will request specific information and identifying documents evidencing the existence of the entity, such as articles of incorporation, a government-issued business license, a partnership agreement, or a trust agreement. FBN may also request a valid government-issued form of identification.
Identity Verification
If FBN is unable to verify your identity, FBN will not be able to open an account or establish a relationship with you as required by federal law. FBN reserves the right to request additional information or documentation at any time based on its discretion.
Any material changes in account information must be submitted in writing to FBN’s Chief Compliance Officer at the above address.
2. Customer Privacy
FBN Securities, Inc. recognizes the importance of protecting your privacy, and we have policies in place to maintain the confidentiality and security of your personal information. The following policy is designed to help you understand what information we collect from you and how we use that information to service your account.
Confidentiality & Security
We restrict access to nonpublic personal information about you to those employees and agents who need that information in order to provide products and services to you. We maintain physical, electronic, and procedural safeguards to protect your nonpublic personal information. We educate our employees to treat personal information with care.
Categories of Information We May Disclose
We do not disclose any nonpublic personal information about our current or former customers to anyone except as permitted by law. In the course of servicing your account, we may disclose your nonpublic personal information to affiliated or non-affiliated third parties that perform accounting, recordkeeping, or administrative services related to your account; to securities regulators upon request; to others pursuant to subpoena; or as otherwise permitted by law.
Even if you decide to close your account or it becomes inactive, we will continue to adhere to these privacy policies and practices.
Categories of Information We Collect
We collect nonpublic personal information about you to help us serve your financial needs and fulfill legal and regulatory requirements. The types of information we collect include:
Information we receive from you on applications or other forms.
Information about your transactions with us and our affiliates.
Information received from non-affiliated entities that help us process your applications or service your account, such as transfer agents, other clearing entities, or firms that provide consulting, accounting, legal, and other professional services.
Opting Out
Please be aware that you have the right to maintain the privacy of your nonpublic personal information. Should our policy change, we will notify you and, at that time, you may notify us in writing if you wish your information not to be used for any purpose other than maintaining your account with our firm.
3. Disclosure of Order Routing – SEC Rule 606(b)(3)
Effective April 1, 2020 the SEC adopted Rule 606(b)(3) which requires a broker-dealer upon request of a customer that places not held orders, to provide specific disclosures, for the prior six months, regarding routing and execution of such orders, and if applicable, material aspects of the relationships with the entities to whom the orders are routed.
Upon written request, you may obtain the identity of the venue to which your orders were routed for the six months prior to your request and the time of transactions that may have resulted from such orders.
All requests should be addressed to FBN at Operations@fbnsecurities.com.
Payment for Order Flow Disclosure
FBN does not direct order flow for the purpose of payment on any transactions. However, FBN may receive rebates or credits per executed share for equity orders or per executed option contract. Upon written request, you may obtain the source and nature of compensation received for order flow for the six months prior to your request.
4. Securities Investor Protection Corporation (SIPC)
FBN is a member of the Securities Investor Protection Corporation (SIPC), which provides protection for investors under specific conditions.
For additional information regarding SIPC and the SIPC brochure, please contact:
Securities Investor Protection Corporation
1667 K Street NW, Suite 1000
Washington, DC 20006-1620
Telephone: (202) 371-8300
Fax: (202) 223-1679
Email: asksipc@sipc.org
5. Business Continuity Plan
FBN maintains a Business Continuity Plan (BCP) in accordance with FINRA and NYSE regulatory requirements. BCP is a practiced plan for how FBN will recover and restore partially or completely interrupted critical functions after a disaster or extended disruption.
As an introducing broker, FBN does not perform clearing functions or maintain custody of customer securities or funds. RBC Capital Markets, LLC (“RBC”) acts as FBN’s clearing agent and has the responsibility of clearing and settling all of FBN’s transactions.
If after a significant business disruption you cannot contact us as you usually do, you should call our alternative telephone numbers (516) 458-0523 or (516) 818-4444, forward an email to operations@fbnsecurities.com in order to obtain information about accessing your securities and funds, or visit our website at www.fbnsecurities.com. As an introducing broker, FBN does not perform clearing functions nor does FBN maintain custody of customer securities or funds.
Clearing Firm
As an introducing broker, FBN does not maintain custody of customer securities or funds, nor does it perform clearing functions. RBC acts as the Firm’s clearing agent and has responsibility for clearing and settling all customer transactions.
In the event our Firm experiences a significant business interruption, you may also contact RBC directly.
To view RBC’s Business Continuity Plan and obtain instructions and contact information for processing limited trade-related transactions, cash disbursements, and security transfers, please visit:
If our normal business phone numbers are not reachable following a major disruption, please visit www.fbnsecurities.com for information regarding access to your securities and funds.
If you are still unable to contact FBN, please contact RBC directly:
6. FINRA Public Disclosure Program
The FINRA Public Disclosure Program provides regulatory information regarding FINRA Member Firms and registered personnel.
FINRA Public Disclosure information is available at:
BrokerCheck: http://brokercheck.finra.org/
or by calling the FINRA Public Disclosure Program Hotline:
(800) 289-9999
7. Extended Hours Trading Risk Disclosure
You should consider the following points before engaging in extended-hours trading:
Risk of Lower Liquidity
Risk of Higher Volatility
Risk of Unlinked Markets
Risk of Wider Spreads
8. Customer Inquiries & Complaints
Please direct all customer inquiries and/or complaints to our Chief Compliance Officer by:
Email: Compliance@fbnsecurities.com
Mail:
112 West 34th Street
New York, NY 10120
Phone: (212) 618-2722
9. SEC Regulation S-P Privacy Notice
Please read this Regulation S-P Privacy notice carefully. FBN Securities Inc. (“FBN”), a registered broker-dealer, maintains safeguards and policies to protect customer confidential information. FBN may use administrative, technical, and physical safeguards designed to protect customer confidential information. The SEC’s model privacy form under Regulation S-P provides a safe harbor for privacy notice content requirements.
WHAT DOES FBN 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.
What?
The types of personal information we collect and share depend on the product or service you have with us. This information may include:
Tax identification number
Investment experience and risk tolerance
Employment information
If you decide to close your account(s) or become an inactive customer, FBN will continue to adhere to the privacy policies and practices described in this notice.
How?
All financial companies need to share customers’ personal information to run their everyday business. In the section below, we explain the reasons financial companies may share customers’ personal information, the reasons FBN chooses to share, and whether you can limit this sharing.
Sharing
Reasons we can share your personal information
Does FBN share?
Can you limit this sharing?
For our everyday business purposes — such as processing transactions, maintaining accounts, responding to court orders and legal investigations, or reporting to credit bureaus
Yes
No
How does FBN protect your personal information?
To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures may include:
Computer safeguards and encryption
Secure files and buildings
Access controls and password protections
Employee confidentiality requirements
Cybersecurity monitoring systems
How does FBN collect your personal information?
We collect your personal information, for example, when you:
Open an account
Direct us to buy or sell securities
Provide account information
Enter into an investment advisory or brokerage relationship
We may also collect information from:
Compliance vendors
Account applications
10. Questions
Should you have any questions or require additional information regarding the disclosures contained in this statement, please contact FBN by mail at the above address, by telephone at (212) 618-2722, or by email at Compliance@fbnsecurities.com.