Business Continuity Statement
Source Capital Group's Business Continuity Plan is designed to enable the firm to continue its operations in the event of internal or external significant business disruptions. The Business Continuity Plan addresses the following items:
- Data back-up and recovery assessments
- Financial and operational assessments
- Alternative communications with our customers and employees
- Alternative physical location of employees
- Critical business partners and service providers
- Communications with our regulators
- Mission Critical Systems
- Providing customers access to their funds/securities
If you have any questions regarding our Business Continuity Plan, please contact your Source Capital Group representative.
Order Routing Disclosure
Source Capital Group, Inc. is providing these reports pursuant to U.S. Securities and Exchange Commission Rule 11Ac1-6, requiring all brokerage firms to make publicly available quarterly reports on their order routing practices. The report provides information on the routing of "non-directed orders" - any order that the customer has not specifically instructed to be routed to a particular venue for execution. For these non-directed orders, Source Capital Group has selected the execution venue on behalf of its customers. Please click on the link below to access the Source Capital Group, Inc. reports."
Margin Disclosure Statement
FINRA requires that its member firms issue the following disclosure statement on margin trading to margin investors.
Margin Disclosure Statement
Your brokerage firm is furnishing this document to you to provide you 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 with your firm regarding any questions or concerns you may have with your margin account(s).
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, 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 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 shortfall 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 or asset to sell in order to protect its interests.
The firm can increase its "house" maintenance margin requirements at any time and is not required to provide you with 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 or other assets 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.
Important Legal Information
This site has been designed for informational purposes only and does not constitute an offer to sell nor a solicitation of an offer to buy any security which may be referenced upon the site. Such offers can only be made where lawful under applicable law. The services and information provided through this site are for personal, non-commercial use and display. Source Capital Group, Inc. does not intend to provide investment advice through this site and does not represent that the securities or services discussed are suitable for any investor. Investors are advised not to rely on any information contained in the site in the process of making a fully informed investment decision. Source Capital Group, Inc. does not, and this site does not, intend to render tax or legal advice.
Hypertext links to or from other Internet sites, may be included at times as a convenience to the user. Source Capital Group, Inc. assumes no responsibility for the content of any linked site. The existence of these links does not indicate approval or endorsement of any material contained on any linked site. Any questions regarding the content of this site should be directed to contact@sourcegrp.com.