BUSINESS CONTINUITY PLAN
Monmouth Capital Management, LLC has developed a Business Continuity Plan on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information on our business continuity plan.
If after a significant business disruption, you cannot contact us via email, you should call our main telephone number at 732-702-5337. Our alternative phone number is 917-715-9883
Our Business Continuity Plan
We plan to quickly recover and resume business operations after a significant business disruption and respond by safeguarding our employees and property, making a financial and operational assessment, protecting the firm’s books and records, and allowing Investors to transact business. In short, our business continuity plan is designed to permit our firm to resume operations as quickly as possible, given the scope and severity of the significant business disruption. Our business continuity plan addresses: data backup and recovery; all mission critical systems; financial and operational assessments; alternative communications with customers, employees, and regulators; alternate physical location of employees; critical bank, regulatory, and business constituent impact; and regulatory reporting.
Significant business disruptions can vary in their scope, such as only our firm, a single building housing our firm, the business district where our firm is located, the city where we are located, or the whole region. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption to only our firm or a building housing our firm, we will transfer our operations to a local site when needed and expect to recover and resume business within 4 hours. In a disruption affecting our business district, city, or region, we will transfer our operations to a site outside of the affected area and recover and resume business within 24 hours. In either situation, we plan to continue in business, transfer operations to our clearing firm if necessary, and notify you through our customer emergency number on how to contact us. If the significant business disruption is so severe that it prevents us from remaining in business, we will assure our customer’s prompt access to their funds and securities.
For more information
If you have questions about our business continuity planning, you can contact us at 732-702-5337.
Monmouth Capital Management, LLC (‘firm”, “we”, “our”) is committed to protecting your privacy and the confidentiality of your personal and financial information. The measures we take to keep your personal information private and secure are outlined below.
Information We Collect
In providing services to you, we collect, retain, and use information about you to serve your financial needs, inform you of products and services that may be of interest, and administer our relationship to you. This information, known as non-public information, may be collected from several sources, including: applications and other forms you file with us, records of transactions and past activities with us, third parties with whom we business relationships to verify your identity and information, and third parties such as consumer reporting agencies. This information includes, among other things, financial status information (i.e. net worth, assets, and tax information); personal identifying information (i.e. social security number and tax identification numbers); investment objectives, risk tolerance, and experience; and past transaction history.
How We Protect Your Information
Sharing of Information
We do not sell your personal information to anyone or any entity for marketing purposes or otherwise. We do not disclose your personal information to non-affiliated third parties except for the following reasons. We share information about you to: 1) affiliates; 2) to service providers that assist us in processing your transactions; 3) to provide services and conduct our operations, and 4) under those circumstances as permitted or required by law. Information that may be shared is all the information described under the section “Information We Collect”.
Our Policy Concerning Former Customers
If you decide to cease conducting business with us, we will adhere to the privacy policies and practices as described in this notice. We reserve the right to change this policy at any time and you will be notified if any changes occur.
How Can I Limit the Sharing of Information?
If for any reason at any time in the future, we find it necessary to disclose any of your personal information in a way that is inconsistent with this policy, we will give you advance notice of the proposed change and the opportunity to opt of such disclosure. Should you wish to limit the information that is shared as outlined in this policy, you can call 804-267-7400. For any joint accounts, your choices will apply to every joint accountholder.
How to Obtain More Information
CUSTOMER IDENTIFICATION PROGRAM
Important Information You Need to Know about Opening a New Account
To help the government fight the funding of terrorism and money laundering activities, federal law requires financial institutions to obtain, verify and record information that identifies each person who opens an account.
What types of information will you have to provide?
At the time you open an account with us, we are required to collect information such as the following from you:
• Your name
• Your date of birth
• Your address
• An identification number
U.S. Citizen: taxpayer identification number (social security number or employer identification number)
Non-U.S. Citizen: taxpayer identification number, passport number and country of issuance, alien identification number or government-issued identification showing nationality, residence and a photograph of you.
You may also need to show your driver's license or other identifying documents.
A corporation, partnership, trust or other legal entity may need to provide other information such as its principal place of business, local office, employee identification number, certified articles of incorporation, government issued business license, a partnership agreement or a trust agreement.
U.S. Department of the Treasury, Securities and Exchange Commission, FINRA and New York Stock Exchange rules already require you to provide most of this information. These rules also may require you to provide additional information, such as your net worth, annual income, occupation, employment information, investment experience and objectives, and risk tolerance.
What happens if I don't provide the information requested or my identity cannot be verified?
We may not be able to open an account or carry out transactions for you. If we have already opened an account for you, we may have to close it.
WE THANK YOU FOR YOUR PATIENCE AND HOPE THAT YOU WILL SUPPORT OUR EFFORTS TO DENY TERRORISTS AND MONEY LAUNDERERS ACCESS TO AMERICA'S FINANCIAL SYSTEM
Monmouth Capital Management, LLC is furnishing this document 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 stocks in a margin account, you should carefully review the margin agreement provided by your firm. Consult us regarding any questions or concerns you may have with your margin accounts.
When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from your brokerage firm. If you choose to borrow funds from your firm, you will open a margin account with the firm. The securities purchased are the firm'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, the firm can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held with the member, 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 the firm that has made the loan to avoid the forced sale of those securities or other securities or assets in your account(s).
The firm can force the sale of securities or other assets in your account(s).
If the equity in your account falls below the maintenance margin requirements, or the firm's higher "house" requirements, the firm can sell the securities or other assets in any of your accounts held at the firm to cover the margin deficiency. You also will be responsible for any short fall in the account after such a sale.
The firm 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. Most firms will attempt to notify their customers of margin calls, but they are not required to do so. However, even if a firm has contacted a customer and provided a specific date by which the customer can meet a margin call, 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(s) are liquidated or sold to meet a margin call.
Because the securities are collateral for the margin loan, the firm has the right to decide which security to sell to protect its interests.
The firm 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 the member to liquidate or sell securities in your account(s).
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.
BEST EXECUTION/ROUTING DISCLOSURE
SEC Rule 606 – The SEC has adopted rules to improve public disclosure of order execution and routing practices. Under Rule 606, Monmouth Capital Management, LLC is required to make publicly available quarterly reports that, among other things, identify the venues to which customer orders are routed for execution. Monmouth Capital Management, LLC routes all eligible OTC and Listed orders directly to our Clearing Firm, COR Clearing, LLC, for execution. In addition, Monmouth Capital Management, LLC is required to disclose to customers, upon written request, the venues to which their individual orders were routed. By making visible the execution quality of the securities markets, the rules are intended to spur more vigorous competition among market participants to provide the best possible prices for investor orders. Current Information
PAYMENT FOR ORDER FLOW
The Securities and Exchange Commission requires all brokerage firms to inform their client’s as to whether such firms receive payment for order flow. Order flow refers to the process by which your orders are executed. Seeking to execute a client’s order into the best available market, a brokerage firm may execute the order as principal, or may route the order to an affiliated or non-affiliated broker-dealer or exchange specialist for execution. Monmouth Capital Management, LLC would like its clients to be aware that the firm does not receive any payments for order flow from any broker or dealer, national securities exchange, registered securities association or exchange member to which it routes customer’s orders for execution.
SECURITIES INVESTOR PROTECTION CORPORATION (‘SIPC”)
SIPC is a corporation created to assist investors in the event the broker/dealer in which they choose to do business with goes bankrupt or has financial difficulties, among other things. In the event you wish to obtain information about SIPC, including the SIPC brochure, you may do so by visiting www.sipc.org or by contacting SIPC by telephone at 1-202-371-8300.