Becoming a Client And Custody of Your Assets

Transcription

1 Becoming a Client And Custody of Your Assets There are seven steps to becoming a client: Getting To Know Us Brick Financial understands that not all investors and investment managers are a good fit for each other. We want all our clients to feel comfortable with our company, advisors, services and investment philosophy prior to engaging us. In the getting to knowus phase, we encourage you to review all the material we provide and on our website and we will answer any questions that arise. You will also want to review the required disclosure information (Part II of Form ADV) about Brick Financial Management, LLC and our Privacy Policy. Data Gathering The Data Gathering stage involves getting to know the details of your current portfolio, assets, retirement dates, children's education, health and more. We do this via an Investment Management Questionnaire 1 (IMQ) for the purpose of developing an investment strategy that fits you best. The IMQ is the launching pad for all the services we will provide to you. The faster and more thorough you complete the document, the faster and better we can serve you. Instead of filling out the paper IMQ, you can use our online QuickStart IMQ. This is essentially the same document yet we have placed it on our secure server for your convenience. We actually prefer this method to the paper version as it allows us to start working on your financial agenda immediately. 1 The IMQ is generally for clients interested in Investment Management services. We have another, yet more detailed questionnaire, for those interested in our Financial Planning or Wealth Management services. We will inform you if you should complete the more detailed questionnaire

2 Proposal Stage Once we receive and review your IMQ with all your financial information we will present you with an overall strategy that we believe will help you achieve your goals and long-term objectives. [In order to expedite the process, we encourage you to FAX ( ) a copy of the IMQ as soon as possible OR use the QuickStart IMQ. We will ask you for supporting documents, and those should be mailed along with the original IMQ to our offices.] At this stage we will recommend what we think will best suit your situation, whether that be portfolio management alone, ongoing wealth management, a one-time financial plan or hourly advice. If we feel that we are not the firm best suited for your needs, we will recommend other financial service providers and help you through that process at no cost to you. Should you decided to work with us you should review and complete the Investment Management Agreement (IMA) with Brick Financial Management, LLC. Completing this form is required to establish a working relationship with us. Our QuickStart form also contains the IMA, thus can be completed by going to our online form. Policy Implementation In the Policy Implementation we will develop a tax and cost effective strategy to implement the new investment plan and will now send you an Investment Policy Statement, a contract and the necessary account applications and transfer forms. Account Set Up All your accounts will be open at the brokerage firm Foliofn, Ameritrade or an agreed upon custodian under your name. Brick Financial does not custody client assets (see Custody of Your Assets below). We are only assigned to your account as the advisor with limited powers to trade and make changes with your prior approval. We will prepare all paperwork necessary to open your accounts and will open your accounts on your behalf when appropriate. If you need to open a new account, we can help you. Foliofn conducts virtually all its business online thus, using the information in your IMQ, we will open the account on your behalf. If it is deemed that Ameritrade is better suited for your needs you will need to completely fill out their paper New Account Applications and Trading Authorization/Fee Payment forms for Ameritrade Advisor Services and are available for download here

3 NOTE: We can expedite the entire Account Set Up process by using Foliofn. The client saccount can be set up with our help in less than 5 minutes. All that is needed is to go to our secure server, QuickStart and enter the required information. The client can fund the account immediately through an electronic fund transfer (ETF) or do so later at his or her convenience. Funding Your Account Mail and Wire Instructions for Foliofn and Ameritrade Please do not send cash, check or wires directly to Brick Financial Management, LLC. Instead, you should send funds directly to your custodian according to the instructions below: Ameritrade Checks and physical certificates should be mailed to: Ameritrade, Inc. P.O. Box 2237 Ameritrade Place Omaha, NE Include your name and Ameritrade Account# on the check or certificate (if you are sending a stock certificate. Write "Ameritrade, Inc." on the back as the "Attorney to Transfer Stock", then sign on the back with your account #). Wires for your Ameritrade Account should be sent to: First National Bank of Omaha 16th and Dodge Street Omaha, NE ABA# Credit to the account of Ameritrade, Inc. A/C # Further Credit to: Your Name and Account# at Ameritrade For subsequent deposits into your Ameritrade account you should use their Deposit Slip. Wires for your Foliofn Account should be sent to: Bank Account Name: Bank: Bank of New York One Wall Street New York, NY Routing Number:

4 Account Number: For Further Credit: FBO Checks and physical certificates should be made payableto FOLIOfn Investments, Inc. and mailed to: PO Box 19338A Newark, NJ or Overnight & Express Delivery Address 8000 Towers Crescent Drive Suite 1500 Vienna, VA Attn: Cash Management Department Include your name and Foliofn Account# on the check. Sign and date a deposit slip that should state: I agree to resolve all disputes through arbitration and not the courts as required on the last page of FOLIOfn's customer agreement. I agree that FOLIOfn does not recommend any securities or investments to me. X Account Owner Signature Date Account Transfers You may fund your account(s) by transferring existing stocks, bonds, mutual funds, and other securities from your current broker. Depending on the assets you held in your account(s) we will either liquidate some or all positions and then move them to your new account(s). Transfer forms for Foliofn can be obtained here and forms for Ameritrade can be obtained here. All account transfers will be done taking into consideration tax consequences and trading costs. You will receive confirmations of all account activity including any trades and transfers as they occur. Account Monitoring We will track your transfer(s) to ensure accuracy and will begin implementing the new investment plan by purchasing your new funds. Your account will be - 4 -

5 continuously monitored from this point forward to ensure that it remains on target with the desired asset allocation. Custody of Your Assets Brick Financial Management, LLC is an independent investment advisor. We do not hold assets for our clients. Brick Financial exercises only a limited power of attorney to direct client trades within the client account as per an agreed upon investment policy statement (See Client Education). Our client accounts are held at the brokerage firm Foliofn, Ameritrade or another agreed upon discount brokerage house and are titled in the client's name only. Any disbursements from that account may only be made to the client at his/her address of record, or the client's bank account. Clients receive original copies of each purchase, sale, or disbursement, a monthly statement, and consolidated tax reporting at year end. The custodian provides an electronic link and other back office support to Brick Financial, which allows us to direct and monitor client accounts on a daily basis. We are not employees of the custodian, and receive no compensation from them for placing trades through them. We are free to select any discount brokerage house or trust company to provide custody for client accounts. We chose our custodians based on the best combination of services, cost to our clients and their financial strength. No one ever has to worry about the financial integrity of our custodians. In addition assets are insured up to $500,000 in accounts you hold in each separate account capacity (e.g. joint tenant or sole owner), with a limit of $100,000 for claims of cash balances by the Securities Investor Protection Corporation (SIPC). If you have any questions regarding all we have laid out for you here, please do not hesitate to contact us at: invest@brickfinancial.com or phone: toll-free: 888-BRICK-10 fax: