Policies and Procedures/Code of Ethics
2021-01-29
MD Investment Advisors
Written Policies and Procedures
Contents
POLICY STATEMENT......................................... 6
CHIEF COMPLIANCE OFFICER APPOINTMENT...................................................7
FIDUCIARY STATEMENT....................................................... 8
Background........................................................... 8
Firm Statement...................................................... 8
CODE OF ETHICS STATEMENT....................... 9
Background........................................................... 9
Introduction.......................................................... 9
Prohibited Purchases and Sales............................ 9
Insider Trading................................................................. 9
Personal Securities Transactions........................ 10
Initial Public Offerings (IPO’s).......................... 10
Limited or Private Offerings .............................. 10
Blackout Periods ............................................... 10
Short-Term Trading ........................................... 10
Miscellaneous Restrictions................................. 11
Margin Accounts................................................. 11
Short Sales ......................................................... 11
Exempted Transactions ...................................... 11
Prohibited Activities........................................... 11
Conflicts of Interest............................................ 11
Gifts and Entertainment...................................... 12
Political and Charitable Contributions............... 13
Confidentiality ................................................... 13
Service on Board of Directors ...........................13
Compliance Procedures...................................... 13
Compliance with Laws and Regulations ............ 13
Personal Securities Transactions Procedure Reporting............................................................ 13
Certification of Compliance............................... 16
Initial Certification............................................. 16
Acknowledgement of Amendments..................... 16
Annual Certification........................................... 16
Reporting Violations........................................... 16
Compliance Officer Duties................................. 17
Training and Education ...................................... 17
Recordkeeping.................................................... 17
Annual Review .................................................. 17
Sanctions ........................................................... 17
Definitions.......................................................... 18
PRIVACY POLICY............................................. 19
ANTI-MONEY LAUNDERING(AML)POLICY.20
AML Program Compliance Officer.................... 20
Giving AML Information to Federal Law Enforcement Agencies and Other Financial Institutions.......................................................... 21
FinCEN Requests under PATRIOT Act 314 ...... 21
Checking the “OFAC” List .................................21
Customer Identification and Verification............ 22
Clients Who Refuse To Provide Information...... 22
Verifying Information.......................................... 22
Lack of Verification ........................................... 24
Recordkeeping ................................................... 24
Monitoring Accounts for Suspicious Activity......24
Emergency Notification to the Gov't by phone.... 25
Red Flags............................................................25
Responding to Red Flags and Suspicious Act..... 26
Suspicious Transactions and BSA Reporting...... 27
Filing a Form SAR-SF....................................... 27
AML Record Keeping........................................ 28
SAR-SF Maintenance and Confidentiality ..........28
Responsibility for AML Records &SAR Filing ..28
Training Programs ..............................................28
Approval & Signatures....................................... 29
Supervisor Approval ..........................................29
AML Compliance Officer Approval................... 29
ANTI-INSIDER TRADING POLICY..................30
Background..........................................................30
Firm Policy..........................................................30
Compliance Requirements.................................. 30
CUSTOMER COMPLAINT POLICY..................31
Firm Policy..........................................................31
CLIENT ACCOUNT/CORRESPONDENCE/TRANSACTION REVIEW POLICY.........................................32
Firm Policy......................................................... 32
Correspondence: ................................................32
Transactions .......................................................32
Account Review .................................................32
CUSTODY POLICY—HANDLING OF CLIENT FUNDS AND SECURITIES................................33
Firm Policy..........................................................33
Compliance Requirements:..................................33
ADVISOR REPRESENTATIVE REGISTRATION, HIRING, AND TRAINING.................................34
Firm Policy..................................................................34
Compliance Requirements: .................................34
FORM ADV (PART 2A AND 2B) UPDATE PROCEDURES...................................................35
Background..........................................................35
ADV PART 2A Firm Brochure ...........................35
ADV PART 2B Firm Brochure Supplement ........36
ADV Update Requirements.......................................................36
DISTRIBUTION OF DISCLOSURE DOCUMENT (FORM ADV 2 OR BROCHURE)......................37
Background..........................................................37
ADV PART 2A Firm Brochure ...........................37
ADV PART 2B Firm Brochure Supplement ........38
Distribution Requirements ..................................39
ADVERTISING POLICY.....................................40
Firm Policy..........................................................40
Compliance Requirements: .................................40
SOFT DOLLAR ARRANGEMENTS STATEMENT......................................................41
Background..........................................................41
Firm Statement.....................................................41
Compliance Requirements...................................41
Review Process ..................................................41
RECORD-KEEPING POLICY............................42
Responsibility for Records..................................42
Record Retention Requirements..........................42
CONTINGENCY PLANNING............................43
Background..........................................................43
Emergency Information........................................43
Firm Contact Persons .........................................43
Support Services ................................................43
Firm Policy .........................................................43
Significant Business Disruptions (SBDs) ...........44
Approval and Execution Authority .....................44
Plan Location and Access ...................................44
Business Description ..........................................44
Our brokerage firm contacts: ..............................44
Office Locations .................................................45
Alternative Physical Location(s) of Employees..45
Clients’ Access to Funds and Securities .............45
Data Back-Up and Recovery (Hard Copy and Electronic)...........................................................46
Operational Assessments ....................................46
Operational Risk ................................................46
Mission Critical Systems ....................................46
Our Firm’s Mission Critical Systems .................47
Trading................................................................47
Client Account Information .................................47
Alternate Communications with Clients, Employees, and Regulators ................................47
Clients ................................................................47
Employees ..........................................................48
Regulators ..........................................................48
Regulatory Reporting ..........................................48
Regulatory Contact: ............................................48
Death of Key Personnel ......................................48
Updates and Annual Review ...............................49
Approval & Signature ........................................50
Supervisor Approval ..........................................50
POLICY STATEMENT
Under Florida regulations and rules, it is unlawful for an investment adviser registered to provide investment advice unless the adviser has adopted and implemented written policies and procedures reasonably designed to prevent violation of Florida regulations and rules regulations by the adviser or any of its supervised persons. The rule requires advisers to consider their fiduciary and
regulatory obligations under Florida regulations and rules, and to formalize policies and procedures to address them. This document is provided as documentation of those policies and procedures.
Reviews of these policies and procedures are to be conducted on an annual basis at a minimum. Interim reviews may be conducted in response to significant compliance events, changes in business arrangements, and regulatory developments.
Adviser will maintain copies of all policies and procedures that are in effect or were in effect at any time during the last five years.
CHIEF COMPLIANCE OFFICER APPOINTMENT
The person herein named “Chief Compliance Officer” is stated to be competent and knowledgeable regarding the Advisers Act or applicable state rule or regulation and is empowered with full responsibility and authority to develop and enforce appropriate policies and procedures for the firm. The compliance officer has a position of sufficient seniority and authority within the organization to compel others to adhere to the compliance policies and procedures.
Supervisor: Matthew Doyle
Chief AML Officer: Randall McDole
Date Responsibility Assumed: 3/1/2020
Annual Review Completed: 1/23/2021
Chief Compliance Officer: Emilie Doyle-Pinho
Date Responsibility Assumed: 3/1/2020
Annual Review Completed:1/23/2021
FIDUCIARY STATEMENT
Background
An investment adviser, whether registered or not, has an affirmative duty to act in the best interests of its clients and to make full and fair disclosure of all material facts, particularly when the adviser's interests may conflict with clients' interests.
Firm Statement
As an investment adviser, MD Investment Advisors owes its clients specific duties as a fiduciary:
Provide advice that is suitable for the client
Give full disclosure of all material fact and any potential conflicts of interest
Serve with loyalty and in good faith
Exercise reasonable care to avoid misleading a client
Make all efforts to ensure best execution of transactions
MD Investment Advisors seeks to protect the interest of each client and to consistently place the client’s interests first and foremost in all situations. It is the belief of this investment adviser that the policies and procedures are sufficient to prevent and detect any violations of regulatory requirements as well as the firm’s own policies and procedures.
CODE OF ETHICS
Background
MD Investment Advisors has adopted a code of ethics to:
set forth standards of conduct expected of advisory personnel (including compliance with federal securities laws);
safeguard material non-public information about client transactions; and
require “access persons” to report their personal securities transactions. In addition, the activities of an investment adviser and its personnel must comply with the broad antifraud provisions of Section 206 of the Advisers Act.
Introduction
As an investment adviser firm, we have an overarching fiduciary duty to our clients.
They deserve our undivided loyalty and effort, and their interests come first. We have an obligation to uphold that fiduciary duty and see that our personnel do not take inappropriate advantage of their positions and the access to information that
comes with their positions.
The Adviser holds their directors, officers, and employees accountable for adhering to and advocating the following general standards to the best of their knowledge and ability:
Always place the interest of the clients first and never benefit at the expense of advisory clients.
Always act in an honest and ethical manner, including in connection with, and the handling and avoidance of, actual or potential conflicts of interest between personal and professional relationships.
Always maintain the confidentiality of information concerning the identity of security holdings and financial circumstances of clients.
Fully comply with all applicable laws, rules and regulations of federal, state and local governments and other applicable regulatory agencies.
Proactively promote ethical and honest behavior with the Adviser, including, without limitation, the prompt reporting of violations of, and being
accountable for adherence to, this Code of Ethics.
Failure to comply with the Adviser’s Code of Ethics may result in disciplinary action, including termination of employment.
PROHIBITED PURCHASES AND SALES
Insider Trading
MD Investment Advisors strictly prohibits trading personally or on the behalf of others, directly or indirectly, based on the use of material, non-public or confidential information. The firm additionally prohibits the communicating of material non-public information to others in violation of the law. Employees who are aware of the misuse of material nonpublic information should report such to the CCO. This policy applies to all firm employees and associated persons without
exception.
The SEC defines material by saying “Information is material if ‘there is a substantial likelihood that a reasonable shareholder would consider it important’ in making an investment decision.” Information is nonpublic if it has not been disseminated in a manner making it available to investors generally.
Please note that SEC’s position that the term “material nonpublic information” relates not only to issuers but also to the adviser’s securities recommendations and client securities holdings and transactions.
Personal Securities Transactions
Initial Public Offerings (IPO’s)
Except in a transaction exempted by the “Exempted Transactions” section of this Code of Ethics, no access person or other employee may acquire, directly or indirectly, beneficial ownership in any securities in an Initial Public Offering without
first obtaining approval from the CCO. The Adviser’s CCO must obtain approval from his Supervisor.
Limited or Private Offerings
Except in a transaction exempted by the “Exempted Transactions” section of this Code of Ethics, no access person or other employee may acquire, directly or indirectly, beneficial ownership in any securities in a Limited or Private Offering
without first obtaining approval from the CCO. The Adviser’s CCO must obtain approval from his Supervisor.
If authorized, investment personnel are required to disclose that investment when they play a part in any client’s subsequent consideration of an investment in the issuer.
Blackout Periods
Access persons are prohibited from executing a securities transaction during a period of five days before and five days after the day which any client has a pending buy or sell order in the same security until that order is executed or withdrawn; however, in appropriate cases the CCO may waive such prohibition at his discretion if all client trades have been cleared or executed. This policy does
not apply to transactions that do not present the potential for conflicts of interest, as set forth under the “Exempted Transactions” section of this policy.
Short-Term Trading
Securities held in client accounts may not be purchased and sold, or sold and repurchased, within 30 calendar days by investment personnel. The CCO may, for good cause shown, permit a short-term trade, but shall record the reasons and
grant of permission with the records of the Code.
Miscellaneous Restrictions
Margin Accounts
Investment personnel are prohibited from purchasing securities on margin, unless pre-cleared by the CCO.
Short Sales
Investment personnel are prohibited from selling any security short that is owned by any client of the firm, except for short sales “against the box”.
Exempted Transactions
The prohibitions of this section of this Code of Ethics shall not apply to:
Purchases or sales affected in any account over which the access person has no direct or indirect influence or control.
Purchases which are part of an automatic investment plan, including dividend reinvestment plans.
Purchases effected upon the exercise of rights issued by an issuer pro rata to all holders of a class of its securities, to the extent such rights were acquired from such issuer, and sales of rights so acquired.
Acquisition of securities through stock dividends, dividend reinvestments, stock splits, reverse stock splits, mergers, consolidations, spin-offs, and other similar corporate reorganizations or distributions generally applicable to all holders of the same class of securities.
Open end investment company shares other than shares of investment companies advised by the firm or its affiliates or sub-advised by the firm.
Certain closed-end index funds
Unit investment trusts
Exchange traded funds that are based on a broad-based securities index
Futures and options on currencies or on a broad-based securities index
Prohibited Activities
Conflicts of Interest
MD Investment Advisors has an affirmative duty of care, loyalty, honesty, and good faith to act in the best interest of its clients. All supervised persons must refrain from engaging in any activity or having a personal interest that presents a “conflict
of interest.” A conflict of interest may arise if your personal interest interferes, or appears to interfere, with the interests of the Adviser or its clients. A conflict of interest can arise whenever you take action or have an interest that makes it difficult for you to perform your duties and responsibilities for the Adviser honestly, objectively, and effectively.
While it is impossible to describe all the possible circumstances under which a conflict of interest may arise, listed below are situations that most likely could result in a conflict of interest and that are prohibited under this Code of Ethics:
Access persons may not favor the interest of one client over another client (e.g., larger accounts over smaller accounts, accounts compensated by
performance fees over accounts not so compensated, accounts in which employees have made material personal investments, accounts of close friends or relatives of supervised persons). This kind of favoritism would constitute a breach of fiduciary duty.
Access persons are prohibited from using knowledge about pending or currently considered securities transactions for clients to profit personally, directly or indirectly, as a result of such transactions, including by purchasing
or selling such securities.
Access persons are prohibited from recommending, implementing, or considering
any securities transaction for a client without having disclosed any material beneficial ownership, business or personal relationship, or other material interest in the issuer or its affiliates, to the CCO. If the CCO deems the disclosed interest to present a material conflict, the investment personnel may not participate in any
decision-making process regarding the securities of that issuer.
Gifts and Entertainment
Supervised persons should not accept inappropriate gifts, favors, entertainment, special accommodations, or other things of material value that could influence their decision-making or make them feel beholden to a person or firm. Similarly,
supervised persons should not offer gifts, favors, entertainment or other things of value that could be viewed as overly generous or aimed at influencing decision-making or making a client feel beholden to the firm or the supervised person.
No supervised person may receive any gift, service, or other thing of more than de minimis value of from any person or entity that does business with or on behalf of the adviser. No supervised person may give or offer any gift of more than de minimis value to existing clients, prospective clients, or any entity that does business with or on behalf of the adviser without written pre-approval by the chief compliance officer. The annual receipt of gifts from the same source valued at $100.00 or less shall be considered de minimis. Additionally, the receipt of an occasional dinner, a ticket to a sporting event or the theater, or comparable entertainment also shall be of de minimis value if the person or entity providing the
entertainment is present.
No supervised person may give or accept cash gifts or cash equivalents to or from a client, prospective client, or any entity that does business with or on behalf of the adviser.
Bribes and kickbacks are criminal acts, strictly prohibited by law. Supervised persons must not offer, give, solicit, or receive any form of bribe or kickback.
Political and Charitable Contributions
Supervised persons making political contributions, in cash or services, must report each such contribution to the CCO, who will compile, and report thereon as required under relevant regulations. Supervised persons are prohibited from considering the adviser’s current or anticipated business relationships as a factor in soliciting political or charitable donations.
Confidentiality
Supervised persons shall respect the confidentiality of information acquired in the
course of their work and shall not disclose such information, except when they believe they are authorized or legally obliged to disclose the information. They may not use confidential information acquired in the course of their work for their personal advantage. Supervised persons must keep all information about clients (including former clients) in strict confidence, including the client’s identity (unless the client consents), the client’s financial circumstances, the client’s security holdings, and advice furnished to the client by the firm.
Service on Board of Directors
Supervised persons shall not serve on the board of directors of publicly traded companies absent prior authorization by the CCO. Any such approval may only be made if it is determined that such board service will be consistent with the interests
of the clients and of the Adviser, and that such person serving as a director will be isolated from those making investment decisions with respect to such company by appropriate procedures. A director of a private company may be required to resign, either immediately or at the end of the current term, if the company goes public during his or her term as director.
Compliance Procedures
Compliance with Laws and Regulations
All supervised persons of the Adviser must comply with all applicable state, local and federal securities laws. Specifically, supervised persons are not permitted, in connection with the purchase or sale, directly or indirectly, of a security held or to be acquired by a client:
To defraud such client in any manner;
To mislead such client, including by making a statement that omits material facts;
To engage in any act, practice or course of conduct which operates or would operate as a fraud or deceit upon such client;
To engage in any manipulative practice with respect to such client; or
To engage in any manipulative practice with respect to securities, including price manipulation.
Personal Securities Transactions Procedures and Reporting
a. Pre-Clearance
1. Pre-Clearance Procedure- For any activity where it is indicated in the Code of Ethics that preclearance is required, the following procedure must be followed:
2. Pre-clearance requests must be submitted by the requesting supervised person to the CCO in writing. The request must describe in detail what is being requested and any relevant information about the proposed activity.
3. The CCO will respond in writing to the request as quickly as is practical, either giving an approval or declination of the request, or requesting additional information for clarification.
4. Pre-clearance authorizations expire 48 hours after the approval, unless otherwise noted by the CCO on the written authorization response.
5. Records of all pre-clearance requests and responses will be maintained by the CCO for monitoring purposes and ensuring the Code of Ethics is followed.
ii. Pre-Clearance Exemptions
The pre-clearance requirements of this section of this Code of Ethics shall not apply to:
1. Purchases or sales affected in any account over which the access person has no direct or indirect influence or control.
2. Purchases which are part of an automatic investment plan, including dividend reinvestment plans.
3. Purchases effected upon the exercise of rights issued by an issuer pro rata to all holders of a class of its securities, to the extent such rights were acquired from such issuer, and sales of rights so acquired.
4. Acquisition of covered securities through stock dividends, dividend reinvestments, stock splits, reverse stock splits, mergers, consolidations, spin-offs, and other similar corporate reorganizations or distributions generally applicable to all holders of the same class of securities.
5. Open end investment company shares other than shares of investment companies advised by the firm or its affiliates or sub-advised by the firm
6. Certain closed-end index funds
7. Unit investment trusts
8. Exchange traded funds that are based on a broad-based securities index
9. Futures and options on currencies or on a broad-based securities index
b. Reporting Requirements
i. Holdings Reports
Every access person shall, no later than ten (10) days after the person becomes an access person and annually thereafter, file an initial holdings report containing the following information:
1. The title, exchange ticker symbol or CUSIP number, type of security, number of shares and principal amount of each Reportable Security in which the access person had any direct or indirect beneficial ownership when the person becomes an access person;
2. The name of any broker dealer, or bank with whom the access person maintained an account in which any securities were held for the direct or indirect benefit of the access person; and
3. The date that the report is submitted by the access person.
ii. Quarterly Reports
Every access person shall, no later than ten (10) days after the end of calendar quarter, file transaction reports containing the following information:
1. For each transaction involving a Reportable Security in which the access person had, or because of the transaction acquired, any direct or indirect beneficial ownership, the access person must provide the date of the transaction, the title, exchange ticker symbol or CUSIP number, type of security, the interest rate and maturity date (if applicable), number of shares and principal amount of each involved in the transaction;
2. The nature of the transaction (e.g., purchase, sale)
3. The price of the security at which the transaction was effected
4. The name of any broker, dealer or bank with or through the transaction was effected; and
5. The date that the report is submitted by the access person.
Access persons may use duplicate brokerage confirmations and account statements in lieu of submitting quarterly transaction reports, provided that all of the required information is contained in those confirmations and statements.
iii. Reporting Exemptions
The reporting requirements of this section of this Code of Ethics shall not apply to:
1. Any report with respect to securities over which the access person has no direct or indirect influence or control.
2. Transaction reports with respect to transactions effected pursuant to an automatic investment plan, including dividend reinvestment plans.
3. Transaction reports if the report would contain duplicate information contained in broker trade confirmations or account statements that the firm holds in its records so long as the firm receives the confirmations or statements no later than thirty (30) days after the end of the applicable calendar quarter.
4. Any transaction or holding report if the firm has only one access person, so long as the firm maintains records of the information otherwise required to be reported under the rule.
iv. Report Confidentiality
All holdings and transaction reports will be held strictly confidential, except to the extent necessary to implement and enforce the provisions of the code or to comply with requests for information from government agencies.
Certification of Compliance
Initial Certification
The firm is required to provide all supervised persons with a copy of the code. All supervised persons are to certify in writing that they have: (a) received a copy of the code; (b) read and understand all provisions of the code; and (c) agreed to comply with the terms of the code.
Acknowledgement of Amendments
The firm must provide supervised persons with any amendments to the code and supervised persons must submit a written acknowledgement that they have received, read, and understood the amendments to the code.
Annual Certification
All supervised persons must annually certify that they have read, understood, and complied with the code of ethics and that the supervised person has made all of the reports required by the code and has not engaged in any prohibited conduct. The CCO shall maintain records of these certifications of compliance.
Reporting Violations
All supervised persons must report violations of the firm’s code of ethics promptly to the CCO. If the CCO is involved in the violation or is unreachable, supervised persons may report directly to the Supervisor. All reports of violations will be treated confidentially to the extent permitted by law and investigated promptly and appropriately. Persons may report violations of the Code of Ethics on an anonymous basis. Examples of violations that must be reported are (but are not
limited to):
noncompliance with applicable laws, rules, and regulations;
fraud or illegal acts involving any aspect of the firm’s business;
material misstatements in regulatory filings, internal books and records, clients records or reports;
activity that is harmful to clients, including fund shareholders; and deviations from required controls and procedures that safeguard clients and the firm.
No retribution will be taken against a person for reporting, in good faith, a violation or suspected violation of this Code of Ethics. Retaliation against an individual who reports a violation is prohibited and constitutes a further violation of the code.
Compliance Officer Duties
Training and Education
CCO shall be responsible for training and educating supervised persons regarding the code. Training will occur periodically as needed and all supervised persons are required to attend any training sessions or read any applicable materials.
Recordkeeping
CCO shall ensure that the Adviser maintains the following records in a readily accessible place:
A copy of each code of ethics that has been in effect at any time during the past five years
A record of any violation of the code and any action taken because of such violation for five years from the end of the fiscal year in which the violation occurred
A record of all written acknowledgements of receipt of the code and amendments for each person who is currently, or within the past five years was a supervised person. These records must be kept for five years after the individual ceases to be a supervised person of the firm.
Holdings and transactions reports made pursuant to the code, including any brokerage confirmation and account statements made in lieu of these report
A list of the names of persons who are currently, or within the past five years were, access persons
A record of any decision and supporting reasons for approving the acquisition of securities by access persons in initial public offerings and limited offerings for at least five years after the end of the fiscal year in which approval was granted.
A record of any decisions that grant employees or access persons a waiver from or exception to the code.
Annual Review
CCO shall review at least annually the adequacy of the code of ethics and the effectiveness of its implementation.
Sanctions
Any violations discovered by or reported to the CCO shall be reviewed and investigated promptly and reported through the CCO to the Supervisor. Such report shall include the corrective action taken and any recommendation for disciplinary action deemed appropriate by the CCO. Such recommendation shall be based on, among other things, the severity of the infraction, whether it is a first or repeat offense, and whether it is part of a pattern of disregard for the letter and intent of this Code of Ethics. Upon recommendation of the CCO, the Supervisor may impose such sanctions for violation of this Code of Ethics as it deems appropriate, including, but not limited to:
letter of censure;
suspension or termination of the employment;
reversal of a securities trade at the violator’s expense and risk, including disgorgement of any profit; and
in serious cases, referral to law enforcement or regulatory authorities.
Definitions
1. “Access Person” includes any supervised person who has access to nonpublic information regarding any clients’ purchase or sale of securities, or nonpublic information regarding the portfolio holdings of any fund the adviser or its control affiliates manage; or is involved in making securities recommendations to clients or has access to such recommendations that are nonpublic. All of the firm’s directors, officers, and partners are presumed to be access persons.
2. “Act” means applicable Florida regulations and rules, IA Act of 1940
3. “Adviser” means MD Investment Advisors.
4. A Covered Security is “being considered for purchase or sale” when a recommendation to purchase or sell the Covered Security has been made and communicated and, with respect to the person making the recommendation, when such person seriously considers making such a recommendation.
5. “Beneficial ownership” shall be interpreted in the same manner as it would be under Rule 16a-1(a)(2) under the Securities Exchange Act of 1934 in determining whether a person is the beneficial owner of a security for purposes as such Act and the rules and regulations promulgated thereunder.
6. “CCO” means Chief Compliance Officer per rule 206(4)-7 of the Investment Advisers Act of 1940.
7. “Conflict of Interest”: for the purposes of this Code of Ethics, a “conflict of interest” will be deemed to be present when an individual’s private interest interferes in anyway, or even appears to interfere, with the interests of the Adviser as a whole.
8. “Covered Security” means any stock, bond, future, investment contract or any other instrument that is considered a “security” under the Act. Additionally, it includes options on securities, on indexes, and on currencies; all kinds of limited partnerships; foreign unit trusts and foreign mutual funds; and private investment funds, hedge funds, and investment clubs.
9. “Covered Security” does not include direct obligations of the U.S. government; bankers’ acceptances, bank certificates of deposit, commercial paper, and high quality short-term debt obligations, including repurchase agreements; shares issued by money market funds; shares of open-end mutual funds that are not advised or sub-advised by the Adviser; and shares issued by unit investment trusts that are invested exclusively in one or more open-end funds, none of which are funds advised or sub-advised by the Adviser.
10. “Initial Public Offering” means an offering of securities registered under the Securities Act of 1933, the issuer of which, immediately before the registration, was not subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934.
11. “Investment personnel” means: (i) any employee of the Adviser or of any company in a control relationship to the Adviser who, in connection with his or her regular functions or duties, makes or participates in making recommendations regarding the purchase or sale of securities for clients.
12. A “Limited Offering” means an offering that is exempt from registration under the Securities Act of 1933 pursuant to Section 4(2) or Section 4(6) thereof or pursuant to Rule 504, Rule 505 or Rule 506 thereunder.
13. “Purchase or sale of a Covered Security” includes, among other things, the writing of an option to purchase or sell a Covered Security.
14. "Reportable security" is as defined by Rule 204A-1 of the Act. If you want more clarification, I point you to this NCS no-action letter, which spells out the CoE requirements in layman's terms:
http://www.sec.gov/divisions/investment/noaction/ncs113005.htm
15. “Supervised Persons” means directors, officers, and partners of the adviser (or other persons occupying a similar status or performing similar functions); employees of the adviser; and any other person who provides advice on behalf of the adviser and is subject to the adviser’s supervision and control.
Privacy Policy
The privacy policy statement is given to clients at the initial signing of the client contract and posted on the firm website; www.MDInvestmentAdvisors.com, upon client request, mailed or emailed annually. The CCO will document the date the PPS was mailed to each client for each year. MD Investment Advisors collects nonpublic personal information about you from the following sources:
Information we receive from you on applications or other forms;
Information about your transactions with us or others; and
Information we receive from a consumer reporting agency.
We do not disclose any nonpublic personal information about you to anyone, except
as permitted by law.
If you decide to close your account(s) or become an inactive customer, we will adhere to the privacy policies and practices as described in this notice.
MD Investment Advisors restricts access to your personal and account information to those employees who need to know that information to provide products or services to you. MD Investment Advisors maintains physical, electronic, and procedural safeguards to guard your nonpublic personal information.
Anti-Money Laundering (AML) Policy
It is the policy of the firm to prohibit and actively prevent money laundering and any activity that facilitates money laundering or the funding of terrorist or criminal activities. Money laundering is generally defined as engaging in acts designed to conceal or disguise the true origins of criminally derived proceeds so that the unlawful proceeds appear to have derived from legitimate origins or constitute legitimate assets. Generally, money laundering occurs in three stages. Cash first enters the financial system at the "placement" stage, where the cash generated from criminal activities is converted into monetary instruments, such as money orders or traveler's checks, or deposited into accounts at financial institutions. At the "layering" stage, the funds are transferred or moved into other accounts or other financial institutions to further separate the money from its criminal origin. At the "integration" stage, the funds are reintroduced into the economy and used to purchase legitimate assets or to fund other criminal activities or legitimate businesses. Terrorist financing may not involve the proceeds of criminal conduct, but rather an attempt to conceal the origin or intended use of the funds, which will later be used for criminal purposes.
Anti-Money Laundering Program Compliance
Officer Appointment
The person herein named “Anti-Money Laundering Program Compliance Officer” has full responsibility for the firm’s AML program. This person is qualified by experience, knowledge, and training. The duties of the AML Compliance Officer will include monitoring the firm’s compliance with AML obligations and overseeing communication and training for employees. The AML Compliance Officer will also ensure that proper AML records are kept as required by law. When warranted, the AML Compliance Officer will ensure Suspicious Activity Reports (SAR-SFs) are filed.
Supervisor: Matthew Doyle
Date Responsibility Assumed: 1/29/2021
Annual Review Completed: 1/29/2021
AML Compliance Officer: Randall McDole
Date Responsibility Assumed: 1/31/202
Annual Review Completed: 1/31/202
Upon passage of any requirements by the Financial Crimes Enforcement Network (FinCEN), the SEC, or any state governing body (such as the state securities board), the firm will provide contact information for the AML Compliance Officer, including name, title, mailing address, e-mail address, telephone number and facsimile number. If so required, the firm will promptly notify of any change to this information.
Giving AML Information to Federal Law
Enforcement Agencies and Other Financial
Institutions
FinCEN Requests under PATRIOT Act Section 314
Under Treasury’s regulations, we will respond to a Financial Crimes Enforcement Network (FinCEN) request about accounts or transactions by immediately searching our records, at our head office or at one of our branches operating in the United States, to determine whether we maintain or have maintained any account for, or have engaged in any transaction with, each individual, entity, or organization named in FinCEN's request. Upon receiving an information request, we will designate one person to be the point of contact regarding the request and to receive similar requests in the future. Unless otherwise stated in FinCEN's request, we are required to search current accounts, accounts maintained by a named suspect during the preceding 12 months, and transactions conducted by or on behalf of or with a named subject during the preceding six months. If we find a match, we will report it to FinCEN by completing FinCEN’s subject information form. This form can be sent to FinCEN by electronic mail at sys314a@fincen.treas.gov, (or if you don’t have e-mail,) by facsimile transmission to 703-905-3660. If the search parameters differ from those mentioned above (for example, if FinCEN requests longer periods of time or limits the search to a geographic location), we will limit our search accordingly.
If we search our records and do not uncover a matching account or transaction, then we will not reply to a 314(a) request.
We will not disclose the fact that FinCEN has requested or obtained information from us, except to the extent necessary to comply with the information request. We will maintain procedures to protect the security and confidentiality of requests from FinCEN, such as those established to satisfy the requirements of Section 501 of the Gramm-Leach-Bliley Act.
We will direct any questions we have about the request to the requesting Federal law enforcement agency as designated in the 314(a) request.
Unless otherwise stated in the information request, we will not be required to treat the information request as continuing in nature, and we will not be required to treat the request as a list for purposes of the customer identification and verification requirements. We will not use information provided to FinCEN for any purpose other than (1) to report to FinCEN as required under Section 314 of the PATRIOT Act; (2) to determine whether to establish or maintain an account, or to engage in a transaction; or (3) to assist the firm in complying with any requirement of Section 314 of the PATRIOT Act.
Checking the Office of Foreign Assets Control (“OFAC”) List
If so required by law, before opening an account, and on an ongoing basis, we will check to ensure that a customer does not appear on Treasury’s OFAC “Specifically Designated Nationals and Blocked Persons” List (SDN List) (See the OFAC Web Site at http://www.treas.gov/ofac, which is also available through an automated search tool on http://www.nasdr.com/money.asp), and is not from, or engaging in transactions with people or entities from, embargoed countries and regions listed on the OFAC Web Site. Because the OFAC Web Site is updated frequently, we will consult the list on a regular basis and subscribe to receive updates when they occur. We may access these lists through various software programs to ensure speed and accuracy. We will also review existing accounts against these lists when they are updated, and we will document our review. In the event that we determine a customer, or someone with or for whom the customer is transacting, is on the SDN List or is from or engaging in transactions with a person or entity located in an embargoed country or region, we will reject the transaction and/or block the customer's assets and file a blocked asset and/or rejected transaction form with OFAC. We will also call the OFAC Hotline at 1-800-540-6322.
Customer Identification and Verification
Prior to opening an account, we will collect the following information for all accounts, if applicable, for any person, entity or organization who is opening a new account and whose name is on the account: the name; date of birth (for an individual); an address, which will be a residential or business street address (for
an individual), an Army Post Office ("APO") or Fleet Post Office ("FPO") number, or residential or business street address of next of kin or another contact individual (for an individual who does not have a residential or business street address), or a principal place of business, local office or other physical location (for a person other than an individual); an identification number, which will be a taxpayer identification number (for U.S. persons) or one or more of the following: a taxpayer identification number, passport number and country of issuance, alien identification card number or number and country of issuance of any other government-issued document evidencing nationality or residence and bearing a photograph or other similar safeguard (for non-U.S. persons). If a customer has applied for, but has not received, a taxpayer identification number, we will attempt to confirm that the application was filed before the customer opens the account and to obtain the taxpayer identification number within a reasonable period after the account is opened.
When opening an account for a foreign business or enterprise that does not have and identification number, we will request alternative government-issued documentation certifying the existence of the business or enterprise.
Clients Who Refuse To Provide Information
If a potential or existing customer either refuses to provide the information described above when requested, or appears to have intentionally provided misleading information, our firm will not open a new account and, after considering the risks involved, consider closing any existing account. In either case, our AML Compliance Officer will be notified so that we can determine whether we should report the situation to FinCEN (i.e., file a Form SAR-SF).
Verifying Information
Based on the risk, and to the extent reasonable and practicable, we will ensure that we have a reasonable belief that we know the true identity of our clients by using risk-based procedures to verify and document the accuracy of the information we get about our clients. In verifying customer identity, we will analyze any logical inconsistencies in the information we obtain. We will verify customer identity through documentary evidence, non-documentary evidence, or both. We will use documents to verify customer identity when appropriate documents are available. In light of the increased instances of identity fraud, we will supplement the use of documentary evidence by using the non-documentary means described below whenever possible. We may also use such non-documentary means, after using documentary evidence, if we are still uncertain about whether we know the true identity of the customer. In analyzing the verification information, we will consider whether there is a logical consistency among the identifying information provided, such as the customer’s name, street address, zip code, telephone number (if provided), date of birth, and social security number. Appropriate documents for verifying the identity of clients include, but are not limited to, the following:
For an individual, an unexpired government-issued identification evidencing nationality, residence, and bearing a photograph or similar safeguard, such as a driver’s license or passport; and
For a person other than an individual, documents showing the existence of the entity, such as certified articles of incorporation, a government-issued business license, a partnership agreement, or a trust instrument.
We understand that we are not required to take steps to determine whether the document that the customer has provided to us for identity verification has been validly issued and that we may rely on a government-issued identification as verification of a customer’s identity. If, however, we note that the document shows some obvious form of fraud, we must consider that factor in determining whether we can form a reasonable belief that we know the customer’s true identity.
We will use the following non-documentary methods of verifying identity:
Contacting a customer;
Independently verifying the customer’s identity through the comparison of information provided by the customer with information obtained from a consumer reporting agency, public database, or other source;
Checking references with other financial institutions; or
Obtaining a financial statement.
We will use non-documentary methods of verification in the following situations: (1) when the customer is unable to present an unexpired government-issued identification document with a photograph or other similar safeguard; (2) when the firm is unfamiliar with the documents the customer presents for identification verification; (3) when the customer and firm do not have face-to-face contact; and (4) when there are other circumstances that increase the risk that the firm will be unable to verify the true identity of the customer through documentary means. We will verify the information within a reasonable time before or after the account is opened. Depending on the nature of the account and requested transactions, we may refuse to complete a transaction before we have verified the information, or in some instances when we need more time, we may, pending verification, restrict the types of transactions or dollar amount of transactions. If we find suspicious information that indicates possible money laundering or terrorist financing activity, we will, after internal consultation with the firm's AML compliance officer, file a SAR-SF in accordance with applicable law and regulation.
Lack of Verification
When we cannot form a reasonable belief that we know the true identity of a customer, we will do the following: (A) not open an account; (B) impose terms under which a customer may conduct transactions while we attempt to verify the customer’s identity; (C) close an account after attempts to verify customer’s identity fail; and (D) file a SAR-SF if required by applicable law and regulation.
Recordkeeping
We will document our verification, including all identifying information provided by a
customer, the methods used and results of verification, and the resolution of any discrepancy in the identifying information. We will keep records containing a description of any document that we relied on to verify a customer’s identity, noting the type of document, any identification number contained in the document, the place of issuance, and if any, the date of issuance and expiration date. With respect to non-documentary verification, we will retain documents that describe the methods and the results of any measures we took to verify the identity of a customer. We will maintain records of all identification information for five years after the account has been closed; we will retain records made about verification of the customer's identity for five years after the record is made.
Monitoring Accounts for Suspicious Activity
We will manually monitor a sufficient amount of account activity to permit identification of patterns of unusual size, volume, pattern or type of transactions, geographic factors such as whether jurisdictions designated as “non-cooperative” are involved, or any of the “red flags” identified below. We will look at transactions, including trading and wire transfers, in the context of other account activity to determine if a transaction lacks financial sense or is suspicious because it is an unusual transaction or strategy for that customer. The AML Compliance Officer or his or her designee will be responsible for this monitoring, will document when and how it is carried out, and will report suspicious activities to the appropriate authorities. Among the information we will use to determine whether to file a Form SAR-SF are exception reports that include transaction size, location, type, number, and nature of the activity. We will create employee guidelines with examples of suspicious money laundering activity and lists of high-risk clients whose accounts may warrant further scrutiny. Our AML Compliance Officer will conduct an appropriate investigation before a SAR is filed.
Emergency Notification to the Government by
Telephone
When conducting due diligence or opening an account, we will immediately call Federal law enforcement when necessary, and especially in these emergencies: we discover that a legal or beneficial account holder or person with whom the account holder is engaged in a transaction is listed on or located in a country or region listed on the OFAC list, an account is held by an entity that is owned or controlled by a person or entity listed on the OFAC list, a customer tries to use bribery, coercion, or similar means to open an account or carry out a suspicious activity, we have reason to believe the customer is trying to move illicit cash out of the government’s reach, or we have reason to believe the customer is about to use the funds to further an act of terrorism. We will first call the OFAC Hotline at 1-800-540-6322. The other contacts we will use are: Financial Institutions Hotline (1-866-556-3974) and our local U.S. Attorney’s Office: (813) 274-6000; local FBI Office: (813) 253-6000; and our local SEC office: (305) 982-6300.
Red Flags
Red flags that signal possible money laundering or terrorist financing include, but are not limited to:
The customer exhibits unusual concern about the firm's compliance with government reporting requirements and the firm's AML policies (particularly concerning his or her identity, type of business and assets), or is reluctant or refuses to reveal any information concerning business activities or furnishes unusual or suspicious identification or business documents.
The customer wishes to engage in transactions that lack business sense or apparent investment strategy or are inconsistent with the customer's stated business or investment strategy.
The information provided by the customer that identifies a legitimate source for funds is false, misleading, or substantially incorrect.
Upon request, the customer refuses to identify or fails to indicate any legitimate source for his or her funds and other assets.
The customer (or a person publicly associated with the customer) has a questionable background or is the subject of news reports indicating possible criminal, civil, or regulatory violations.
The customer exhibits a lack of concern regarding risks, commissions, or other transaction costs.
The customer appears to be acting as an agent for an undisclosed principal, but declines or is reluctant, without legitimate commercial reasons, to provide information or is otherwise evasive regarding that person or entity.
The customer has difficulty describing the nature of his or her business or lacks general knowledge of his or her industry.
The customer attempts to make frequent or large deposits of currency, insists on dealing only in cash, or asks for exemptions from the firm's policies relating to the deposit of cash.
The customer engages in transactions involving cash or cash equivalents or other monetary instruments that appear to be structured to avoid the $10,000 government reporting requirements, especially if the cash or monetary instruments are in an amount just below reporting or recording thresholds.
For no apparent reason, the customer has multiple accounts under a single name or multiple names, with many inter-account or third-party transfers.
The customer is from, or has accounts in, a country identified as a noncooperative country or territory by the FATF.
The customer's account has unexplained or sudden extensive wire activity, especially in accounts that had little or no previous activity.
The customer's account shows numerous currencies or cashier’s check transactions aggregating to significant sums.
The customer's account has many wire transfers to unrelated third parties inconsistent with the customer's legitimate business purpose.
The customer's account has wire transfers that have no apparent business purpose to or from a country identified as a money laundering risk or a bank secrecy haven.
The customer's account indicates large or frequent wire transfers, immediately withdrawn by check or debit card without any apparent business
purpose.
The customer makes a funds deposit followed by an immediate request that the money be wired out or transferred to a third party, or to another firm, without any apparent business purpose.
The customer makes a funds deposit for the purpose of purchasing a long-term investment followed shortly thereafter by a request to liquidate the position and transfer of the proceeds out of the account.
The customer engages in excessive journal entries between unrelated accounts without any apparent business purpose.
The customer requests that a transaction be processed to avoid the firm's normal documentation requirements.
The customer, for no apparent reason or in conjunction with other red flags, engages in transactions involving certain types of securities, such as penny stocks, Regulation S stocks, and bearer bonds, which although legitimate, have been used in connection with fraudulent schemes and money laundering activity. (Such transactions may warrant further due diligence to ensure the legitimacy of the customer's activity.)
The customer exhibits a lack of concern regarding risks, commissions, or other transaction costs.
The customer appears to be acting as an agent for an undisclosed principal, but declines or is reluctant, without legitimate commercial reasons, to provide information or is otherwise evasive regarding that person or entity.
The customer has difficulty describing the nature of his or her business or lacks general knowledge of his or her industry.
The customer attempts to make frequent or large deposits of currency, insists on dealing only in cash, or asks for exemptions from the firm's policies relating to the deposit of cash.
The customer engages in transactions involving cash or cash equivalents or other monetary instruments that appear to be structured to avoid the $10,000 government reporting requirements, especially if the cash or monetary instruments are in an amount just below reporting or recording thresholds.
For no apparent reason, the customer has multiple accounts under a single name or multiple names, with many inter-account or third-party transfers.
The customer is from, or has accounts in, a country identified as a noncooperative country or territory by the FATF.
The customer's account has unexplained or sudden extensive wire activity, especially in accounts that had little or no previous activity.
The customer's account shows numerous currencies or cashier’s check transactions aggregating to significant sums.
The customer's account has many wire transfers to unrelated third parties inconsistent with the customer's legitimate business purpose.
The customer's account has wire transfers that have no apparent business purpose to or from a country identified as a money laundering risk or a bank secrecy haven.
The customer's account indicates large or frequent wire transfers, immediately withdrawn by check or debit card without any apparent business purpose.
The customer makes a funds deposit followed by an immediate request that the money be wired out or transferred to a third party, or to another firm, without any apparent business purpose.
The customer makes a funds deposit for the purpose of purchasing a longterm investment followed shortly thereafter by a request to liquidate the position and transfer of the proceeds out of the account.
The customer engages in excessive journal entries between unrelated accounts without any apparent business purpose.
The customer requests that a transaction be processed to avoid the firm's normal documentation requirements.
The customer, for no apparent reason or in conjunction with other red flags, engages in transactions involving certain types of securities, such as penny stocks, Regulation S stocks, and bearer bonds, which although legitimate, have been used in connection with fraudulent schemes and money laundering activity. (Such transactions may warrant further due diligence to ensure the legitimacy of the customer's activity.)
The customer's account shows an unexplained high level of account activity with very low levels of securities transactions.
The customer maintains multiple accounts, or maintains accounts in the names of family members or corporate entities, for no apparent purpose.
The customer's account has inflows of funds or other assets well beyond the known income or resources of the customer.
Responding to Red Flags and Suspicious Activity
When a member of the firm detects any red flag, he or she will investigate further under the direction of the AML Compliance Officer. This may include gathering additional information internally or from third-party sources, contacting the government or filing a Form SAR-SF.
Suspicious Transactions and BSA Reporting
Filing a Form SAR-SF
If required by law, we will file Form SAR-SFs for any account activity (including deposits and transfers) conducted or attempted through our firm involving (or in the aggregate) $5,000 or more of funds or assets where we know, suspect, or have reason to suspect: 1) the transaction involves funds derived from illegal activity or is intended or conducted in order to hide or disguise funds or assets derived from illegal activity as part of a plan to violate or evade federal law or regulation or to avoid any transaction reporting requirement under federal law or regulation, 2) the transaction is designed, whether through structuring or otherwise, to evade any requirements of the BSA regulations, 3) the transaction has no business or apparent lawful purpose or is not the sort in which the customer would normally be expected to engage, and we know, after examining the background, possible purpose of the transaction and other facts, of no reasonable explanation for the transaction, or 4) the transaction involves the use of the firm to facilitate criminal activity.
We will not base our decision on whether to file a SAR-SF solely on whether the transaction falls above a set threshold. We will file a SAR-SF and notify law enforcement of all transactions that raise an identifiable suspicion of criminal, terrorist, or corrupt activities. In high-risk situations, we will notify the government immediately (See above for contact numbers) and will file a SAR-SF with FinCEN. Securities law violations that are reported to the SEC or a Self-Regulatory Organization (SRO) may also be reported promptly to the local U.S. Attorney, as appropriate.
We will not file SAR-SFs to report violations of Federal securities laws or SRO rules by our employees or registered representatives that do not involve money laundering or terrorism, but we will report them to the SEC or SRO.
All SAR-SFs will be periodically reported to the Board of Directors and senior management, with a clear reminder of the need to maintain the confidentiality of the SAR-SF.
We will report suspicious transactions by completing a SAR-SF and we will collect and maintain supporting documentation as required by the BSA regulations. We will file a SAR-SF no later than 30 calendar days after the date of the initial detection of the facts that constitute a basis for filing a SAR-SF. If no suspect is identified on the date of initial detection, we may delay filing the SAR-SF for an additional 30 calendar days pending identification of a suspect, but in no case, will the reporting be delayed more than 60 calendar days after the date of initial detection.
We will retain copies of any SAR-SF filed and the original or business record equivalent of any supporting documentation for five years from the date of filing the SAR-SF. We will identify and maintain supporting documentation and make
such information available to FinCEN, any other appropriate law enforcement agencies, or federal or state securities regulators, upon request. We will not notify any person involved in the transaction that the transaction has been reported, except as permitted by the BSA regulations. We understand that anyone who is subpoenaed or required to disclose a SAR-SF or the information
contained in the SAR-SF, except where disclosure is requested by FinCEN, the SEC, or another appropriate law enforcement or regulatory agency or an SRO registered with the SEC, will decline to produce to the SAR-SF or to provide any information that would disclose that a SAR-SF was prepared or filed. We will notify FinCEN of
any such request and our response.
AML Record Keeping
SAR-SF Maintenance and Confidentiality
We will hold SAR-SFs and any supporting documentation confidential. We will not inform anyone outside of a law enforcement or regulatory agency or securities regulator about a SAR-SF. We will refuse any subpoena requests for SAR-SFs or
SAR-SF information and immediately tell FinCEN of any such subpoena we receive. We will segregate SAR-SF filings and copies of supporting documentation from other firm books and records to avoid disclosing SAR-SF filings. Our AML
Compliance Officer will handle all subpoenas or other requests for SAR-SFs. We will share information with our clearing broker about suspicious transactions in order to determine when a SAR-SF should be filed. As mentioned earlier, we may share with the clearing broker a copy of the filed SAR-SF – unless it would be inappropriate to do so under the circumstances, such as where we file a SAR-SF concerning the clearing broker or its employees.
Responsibility for AML Records and SAR Filing
Our AML Compliance Officer and his or her designee will be responsible to ensure that AML records are maintained properly, and that SARs are filed as required. We
will maintain AML records and their accompanying documentation for at least five
years. We will keep other documents according to existing BSA and other record keeping requirements.
Training Programs
If required by law, we will develop ongoing employee training under the leadership of the AML Compliance Officer and senior management. Our training will occur on at least an annual basis. It will be based on our firm’s size, its customer base, and its resources.
Our training will include, at a minimum: how to identify red flags and signs of money laundering that arise during the employees’ duties; what to do once the risk is identified; what employees' roles are in the firm's compliance efforts and how to perform them; the firm's record retention policy; and the disciplinary consequences (including civil and criminal penalties) for non-compliance with the PATRIOT Act.
We will develop training in our firm, or contract for it. Delivery of the training may include educational pamphlets, videos, intranet systems, in-person lectures, and explanatory memos. We will maintain records to show the persons trained, the dates of training, and the subject matter of their training.
We will review our operations to see if certain employees, such as those in compliance, margin, and corporate security, require specialized additional training. Our written procedures will be updated to reflect any such changes.
Approval & Signatures
Supervisor Approval
Approve the firm’s AML program by signing below.
I have approved this AML program as reasonably designed to achieve and monitor our firm’s ongoing compliance with the requirements of the BSA and the implementing regulations under it.
AML Compliance Officer Approval
Approve the firm’s AML program and agree to enforce it by signing below.
I have approved this AML program as reasonably designed to achieve and monitor our firm’s ongoing compliance with the requirements of the BSA and the implementing regulations under it. I am assuming full responsibility for the firm’s AML program. I am qualified by experience, knowledge and training. I understand the duties listed under the program and will fulfill those duties.
AML Officer Name: Randall McDole
Anti-Insider Trading Policy
Background
An investment adviser should establish, maintain and enforce written policies and procedures reasonably designed, taking into consideration the nature of such investment adviser’s business, to prevent the misuse of material, non-public information by such investment adviser or any person associated with such investment adviser. The SEC defines material by saying “Information is material if ‘there is a substantial likelihood that a reasonable shareholder would consider it important’ in making an investment decision.” Information is nonpublic if it has not been disseminated in a manner making it available to investors generally.
Firm Policy
MD Investment Advisors strictly prohibits trading personally or on the behalf of others, directly or indirectly, based on the use of material, non-public or confidential information. The firm additionally prohibits the communicating of material non-public information to others in violation of the law. This policy applies to all firm employees and associated persons without exception. In addition, this firm has instituted procedures as described in its Anti-Insider Trading Policy, as amended from time to time, to prevent the misuse of material nonpublic information.
Compliance Requirements
The CCO is responsible for:
Ensuring all employees and associated persons sign a statement acknowledging and agreeing to abide by the firm’s anti-insider trading policy.
Maintaining a list for each firm and associated person listing all securities owned.
Copies of all transaction confirmations or monthly or quarterly securities account statement summaries from each of these persons.
Reviewing these confirmations and summaries for inappropriate transactions and reporting them to Supervisor for action.
Maintaining record of Supervisor review and results.
The employee acknowledgement statement and list of securities owned should be provided to the CCO on the date of association and annually thereafter. All other record-keeping requirements should be done on a quarterly basis, no more than 10 days after the end of the calendar quarter. Reviews of this policy are to be conducted by the CCO on an annual basis at a minimum.
Customer Complaint Policy
Firm Policy
The firm’s CCO shall be responsible for handling complaint reviews. Specifically:
Compliance Requirements:
The CCO will review all complaints immediately as they are made by clients;
The CCO will communicate with a client via the telephone, face-to-face meetings, and/or email to resolve all complaints and client issues;
The CCO will maintain a compliant file in the main filing cabinet. This file will contain each client complaint, including, but not limited to, any letter, email, or document from a client who has filed a complaint; any letter, email, or document from any agency regarding the complaint; any communication sent from the IA to any client, agent, agency, or third party regarding each complaint; and documentation of how each complaint was resolved.
Client Account/Correspondence/Transaction
Review Policy
Firm Policy
The firm’s CCO or designated representative shall be responsible for reviewing all client account activities, correspondence, and transactions.
Correspondence:
The CCO will review all client correspondence for complaints and respond them immediately as they are made by clients;
The CCO will communicate with a client via the telephone, face-to-face meetings, and/or email to resolve all complaints and client issues;
The CCO will maintain a compliant file in the main filing cabinet. This file will contain each client complaint, including, but not limited to, any letter, email, or document from a client who has filed a complaint; any letter, email, or document from any agency regarding the complaint; any communication sent from the IA to any client, agent, agency, or third party regarding each complaint; and documentation of how each complaint was resolved.
Transactions
The CCO or designate will review all transactions to make sure best price,proper execution, and that suitability matches the clients investment policy statement.
Account Review
The CCO or designate will review client accounts at least quarterly to ensure best price, proper execution, and that suitability matches the client’s investment policy statement.
Custody Policy—Handling of Client Funds and Securities
Firm Policy
It is the policy of this company to never take custody of client funds/securities and all funds/securities are sent directly to the custodian of record. From time to time, IA will mail funds/securities to custodian as a courtesy to clients, but never take custody of either.
Rule 206(4)-7 under the Advisers Act requires registered investment advisers to adopt and implement written policies and procedures reasonably designed to prevent violations of the Advisers Act and its rules. These policies and procedures must address, among other things, the safeguarding of client assets from conversion or inappropriate use by advisory personnel. Compliance with rule 206(4)-7 requires an adviser with custody to adopt controls over access to client assets that are reasonably designed to prevent misappropriation or misuse of client
assets, develop systems or procedures to assure prompt detection of any misuse, and take appropriate action if any misuse does occur.
Compliance Requirements:
If the firm ever did take custody of client accounts, it would follow the following guidelines.
conducting background and credit checks on employees of the investment adviser who will have access (or could acquire access) to client assets to determine whether it would be appropriate for those employees to have such
access;
requiring the authorization of more than one employee before the movement of assets within, and withdrawals or transfers from, a client’s account, as well as before changes to account ownership information;
limiting the number of employees who are permitted to interact with custodians with respect to client assets and rotating them on a periodic basis; and
if the adviser also serves as a qualified custodian for client assets, segregating the duties of its advisory personnel from those of custodial
personnel to make it difficult for any one person to misuse client assets without being detected.
These policies also include:
periodic testing on a sample basis of fee calculations for client accounts to determine their accuracy;
testing of the overall reasonableness of the amount of fees deducted from all client accounts for a period based on the adviser’s aggregate assets under management; and
segregating duties between those personnel responsible for processing billing invoices or listings of fees due from clients that are provided to and used by custodians to deduct fees from clients’ accounts and those personnel responsible for reviewing the invoices and listings for accuracy, as well as the employees responsible for reconciling those invoices and listings with deposits of advisory fees by the custodians into the adviser’s proprietary bank account to confirm that accurate fee amounts were deducted.
Advisor Representative Registration, Hiring, and Training
Firm Policy
The firm’s CCO shall be responsible for handling the registration and supervising the hiring of all firm IARs:
Compliance Requirements:
The CCO will review all new hire U4’s and ensure they are properly registered with the state;
The CCO will ensure that all new hires are familiar with the firm’s Policies and Procedures;
The CCO will maintain a list of all current and past employees of the firm as well as the reason for their termination as documented in the form U5.
The CCO shall be responsible for training and educating supervised persons regarding the code. Training will occur periodically as needed and all
supervised persons are required to attend any training sessions or read any applicable materials.
Form ADV (Part 2A and 2B) Update Procedures
Background
An adviser must amend their Form ADV each year by filing an annual updating amendment within 90 days after the end of their fiscal year.
ADV PART 2A Firm Brochure
You must update your brochure: (a) each year at the time you file your annual updating amendment; and (b) promptly whenever any information in the brochure becomes materially inaccurate. You are not required to update your brochure between annual amendments solely because the amount of client assets you manage has changed or because your fee schedule has changed. However, if you are updating your brochure for a separate reason in between annual amendments, and the amount of client assets you manage listed or your fee schedule listed has become materially inaccurate, you should update that item(s) as part of the interim amendment. All updates to your brochure must be filed through the IARD system and maintained in your files.
If you are filing our annual updating amendment and the last brochure that we filed does not contain any materially inaccurate information you do NOT have to prepare a summary of material changes as long as you have not filed any interim amendments making material changes to the brochure that you filed with last year’s annual updating amendment. If you do not have to prepare a summary of material changes, you do not have to deliver a summary of material changes or a brochure to your existing clients that year.
You may include a summary of the brochure at the beginning of your brochure.
You may prepare multiple firm brochures. If you offer substantially different types of advisory services, you may opt to prepare separate brochures so long as each client receives all applicable information about services and fees. Each brochure may omit information that does not apply to the advisory services and fees it describes. For example, your firm brochure sent to your clients who invest only in the United States can omit information about your advisory services and fees relating to offshore investments. If you prepare separate brochures you must file each brochure (and any amendments) through the IARD system.
If you sponsor a wrap fee program, there is a different brochure that you need to deliver to your wrap fee clients. You must deliver a wrap fee program brochure to your wrap fee clients. The disclosure requirements for preparing a wrap fee program brochure appear in Part 2A, Appendix 1 of Form ADV. If your entire advisory business is sponsoring wrap fee programs, you do not need to prepare a firm brochure separate from your wrap fee program brochure(s).
If you provide portfolio management services to clients in wrap fee programs that you do not sponsor, you must deliver your brochure prepared in accordance with Part 2A (not Appendix 1) to your wrap fee clients. You also must deliver to these clients any brochure supplements required by Part 2B of Form ADV.
ADV PART 2B Firm Brochure Supplement
You must update brochure supplements promptly whenever any information in them becomes materially inaccurate.
You may deliver supplements electronically. If you deliver a supplement electronically, you may disclose in that supplement that the supervised person has a disciplinary event and provide a hyperlink to either the BrokerCheck or the IAPD systems.
If you are registered or are registering with one or more state securities authorities, you must file through IARD a copy of the brochure supplement
for each supervised person doing business in that state.
If you are registered or are registering with the SEC, you are not required to file your brochure supplements, but you are required to maintain copies of all supplements and amendments to supplements in your files.
ADV Update Requirements
The firm’s CCO shall review, at least annually, the firm’s Form ADV and all related documents. The CCO shall file amendments to Part 1A of the Form ADV electronically with the Investment Adviser Registration Depository (IARD) within 90 days of the firm’s fiscal year end. Material changes to Part 2A & 2B shall be made promptly and the updated brochure shall be delivered to all prospective clients and offered to clients on an annual basis.
The CCO shall see that a current copy of the Form ADV (2A & 2B) is kept on file, as well as a copy of all old Form ADVs.
Distribution of Disclosure Document (Form ADV 2 or Brochure)
Background
ADV PART 2A Firm Brochure
You must give a firm brochure to each client. You must deliver the brochure even if your advisory agreement with the client is oral.
If you are registered with the SEC, you are not required to deliver your brochure to either (a) clients who receive only impersonal investment advice from you and who will pay you less than $500 per year or (b) clients that are SEC-registered investment companies or business development companies (the client must be registered under the Investment Company Act of 1940 or be a business development company as defined in that Act, and the advisory contract must meet the requirements of section 15(c) of that Act).
You must give a firm brochure to each client before or at the time you enter into an advisory agreement with that client. Each year you must deliver (NOT JUST OFFER ANYMORE), within 120 days of the end of your fiscal year, to each client a free updated brochure that either includes a summary of material changes or is accompanied by a summary of material changes, or deliver to each client a summary of material changes that includes an offer to provide a copy of the updated brochure and information on how a client may obtain the brochure.
You do not have to deliver an interim amendment to clients unless the amendment includes information in response to Item 9 of Part 2A (disciplinary information). An interim amendment can be in the form of a document describing the material facts relating to the amended disciplinary event.
Note: As a fiduciary, you have an ongoing obligation to inform your clients of any material information that could affect the advisory relationship. As a result, between annual updating amendments you must disclose material changes to such information to clients even if those changes do not trigger delivery of an interim amendment.
You may deliver your brochure electronically. This includes email. In fact, I recommend this because it means you have a time stamped record of the delivery of the ADV.
ADV PART 2B Firm Brochure Supplement
You must prepare a brochure supplement for the following supervised persons:
(i) Any supervised person who formulates investment advice for a client and has direct client contact; and (ii) Any supervised person who has discretionary authority over a client’s assets, even if the supervised person has no direct client contact. No supplement is required for a supervised person who has no direct client contact and has discretionary authority over a client’s assets only as part of a team. In addition, if discretionary advice is provided by a team comprised of more than five supervised persons, brochure supplements need only be provided for the five supervised persons with the most significant responsibility for the day-to-day discretionary advice provided to the client.
You must deliver to a client the brochure supplements for each supervised person who provides advisory services to that client.
However, there are three categories of clients to whom you are not required to deliver supplements. First, you are not required to deliver supplements to clients to whom you are not required to deliver a firm brochure (or a wrap fee program brochure).
Second, you are not required to deliver supplements to clients who receive only impersonal investment advice, even if they receive a firm brochure.Third, you are not required to deliver supplements to clients who are
individuals who would be “qualified clients” of your firm under SEC rule
205-3(d)(1)(iii). Those persons are: (i) Any executive officers, directors,
trustees, general partners, or persons serving in a similar capacity, of
your firm; or (ii) Any employees of your firm (other than employees
performing solely clerical, secretarial or administrative functions) who, in
connection with their regular functions or duties, participate in the
investment activities of your firm and have been performing such functions or duties for at least 12 months.
You must deliver the supplement for a supervised person before or at the time that supervised person begins to provide advisory services to a client.
You also must deliver to clients any update to the supplement that amends information in response to Item 3 of Part 2B (disciplinary information). Such an amendment can be in the form of a “sticker” that identifies the information that has become inaccurate and provides the new information and the date of the sticker.
As a fiduciary, you have a continuing obligation to inform your clients of any material information that could affect the advisory relationship. As a result, between annual updating amendments you must disclose material changes to clients even if those changes do not trigger delivery of an updated supplement. You may have a supervised person deliver supplements (including his own) on your behalf.
Failure to properly distribute your Form ADV 2A & 2B, as required by this instruction, is a violation of Florida regulations and rules, and could lead to your registration being revoked.
Distribution Requirements
The firm’s CCO shall ensure all new firm clients are given a copy of the firm’s Form ADV 2A and 2B at or before the contract signing.
The firm’s CCO shall ensure that at least annually all clients are offered in writing and free of charge the firm’s current ADV 2A and 2B supplements.
Advertising Policy
Firm Policy
The firm’s CCO shall be responsible for approving all company advertising and ensuring it is in regulatory compliance. No advertisement shall be distributed without the CCO’s approval.
Compliance Requirements:
An advertisement may not:
Use or refer to testimonials (which include any statement of a client's experience or endorsement);
mislead clients using misrepresentations or exaggerations.
Refer to past, specific recommendations made by the adviser that were profitable, unless the advertisement sets out a list of all recommendations made by the adviser within the preceding period of not less than one year, and complies with other, specified conditions;
Represent that any graph, chart, formula, or other device can, in and of itself, be used to determine which securities to buy or sell, or when to buy or sell such securities, or can assist persons in making those decisions, unless the advertisement prominently discloses the limitations thereof and the difficulties regarding its use; and
Represent that any report, analysis, or other service will be provided without charge unless the report, analysis or other service will be provided without any obligation whatsoever.
An advertisement shall include any notice,
circular, letter or other written communication addressed to more than one person, or any notice or other announcement in any publication or by radio or television, which offers (1) any analysis, report, or publication concerning securities, or which is to be used in making any determination as to when to buy or sell any security, or which security to buy or sell, or (2) any graph, chart, formula, or other device to be used in making any determination as to when to buy or sell any security, or which security to buy or sell, or (3) any other investment advisory service with regard to securities.
Soft Dollar Arrangements Statement
Background
The Securities and Exchange Commission (SEC) has defined “soft dollar” practices as arrangements under which products or services, other than execution of securities transactions, are obtained by an investment adviser from or through a broker-dealer in exchange for the direction by the adviser of client brokerage transactions to the broker-dealer.
Firm Statement
The Firm does not have any soft dollar arrangements of any kind.
Compliance Requirements
The company’s Chief Compliance Officer is responsible for the following:
Ensuring that this statement is followed, and if any soft dollar arrangements not listed here are created, that the statement is promptly updated to properly reflect this as well as the firm’s Form ADV 2A.
Monitoring all soft dollar arrangements to ensure they fall within the scope of Section 28(e) safe harbor requirements.
Making sure that the firm receives an annual soft dollar statement from any broker-dealer with whom the firm has a soft dollar arrangement.
Keeping statements of any products and/or services received for soft dollars.
Review Process
Reviews of the firm’s soft dollar arrangements are to be conducted by the CCO on an annual basis at a minimum. Interim reviews may be conducted in response to changes in the firm’s soft dollar arrangements.
Record-Keeping Policy
Responsibility for Records
The firm’s CCO is responsible for keeping all the firm’s records. These records include:
Code of Ethics Records: See the Code of Ethics Section of this Manual
Privacy Policy Records: See the Privacy Policy Section of this Manual
AML Records: See the AML Section of this Manual
Anti-insider Trading Records: See the Anti-Insider Trading Section of this Manual
Client Account Records Including Transaction Records: Client folders, when possible, should be kept in alphabetical order with the files inside those folders kept in chronological order. Any time the firm does anything regarding a client’s account, there must be some record of it. All documents on behalf of a client must be kept.
Client Complaint Records: See the Compliant Policy Section of this Manual
Error File: Any errors the firm makes (trading, for example) must be documented along with the resolution of the error.
Form ADV and Brochure Records: The firm’s CCO must retain copies of the current and all previous brochures and brochure supplements.
Form ADV Distribution Records: The firm’s CCO must keep a record of providing all new clients the ADV 2 or brochure. This is recorded in the client contract. The firm’s CCO must keep record of the annual offer to all existing clients of the most recent ADV or brochure.
Advertising Records: Any time the firm runs an advertisement, sends a newsletter, runs an article, or does anything that could be considered to be an advertisement, promotion, or marketing campaign, the firm’s CCO must keep a copy of it and a record of to whom it was sent.
Soft-Dollar Arrangement Records: See the Soft-Dollar Section of this Manual
Record Retention Requirements
The firm’s CCO shall ensure that all records are kept readily accessible for at least two years and kept at least five years either on-site or at alternative location.
Contingency Planning
Background
While it is recognized it is not possible to create a plan to handle every possible eventuality, it is the intent of this firm to set up a framework to be used the most likely of scenarios. It is also the intent that this framework provide guidance as to how to respond should an unforeseen situation occur.
Emergency Information
Firm Contact Persons
Our firm’s two emergency contact persons are:
Matthew Doyle, 941-792-9198, mdoyle@mdinvestmentadvisors.com
and
Randall McDole, 410-902-6546, rmcdole@mdinvestmentadvisors.com
Support Services
In the event of an emergency, the following is a quick list of support services and the methods by which they may be contacted:
Emergency Services (EMS): Telephonically by dialing 911
Fire Department: Telephonically by dialing 911
Police Department: Telephonically by dialing 911
Firm Accountants: N/A
Firm Computer Technicians: N/A
Firm Attorneys: N/A
This information will be updated in the event of a material change, and our Chief Compliance Officer will review them on an annual basis.
Firm Policy
Our firm’s policy is to respond to a Significant Business Disruption (SBD) by safeguarding employees’ lives and firm property, making a financial and operational assessment, quickly recovering and resuming operations, protecting all of the firm’s books and records, and allowing our clients to transact business. In the event that we determine we are unable to continue our business, we will assure clients prompt access to their funds and securities.
Significant Business Disruptions (SBDs)
Our plan anticipates two kinds of SBDs, internal and external. Internal SBDs affect only our firm’s ability to communicate and do business, such as a fire in our building or the death of a key member of the firm. External SBDs prevent the operation of the securities markets or a number of firms, such as a terrorist attack, a city flood, or a wide-scale, regional disruption. Our response to an external SBD relies more heavily on other organizations and systems, such as the brokerage firm(s) we use.
Approval and Execution Authority Emilie Doyle-Pinho, Chief Compliance Officer, is responsible for approving the plan and for conducting the required annual review. The Chief Compliance Officer (CCO) has the authority to execute this BCP.
Plan Location and Access
Our firm will maintain copies of its BCP plan and the annual reviews, and the changes that have been made to it for inspection. A physical copy of this BCP will be stored with the company’s Written Policies and Procedures Manual, which is located in Matthew Doyle's office on top shelf of book case. An electronic copy of our plan is in Redtail Imaging CRM Folder: Compliance: BCP.pdf
Business Description
MD Investment Advisors conducts business as a Registered Investment Advisors Firm. We do not hold customers funds or securities. We accept and enter trades. All transactions are sent to our custodian, which executes our orders, compares them, allocates them, clears, and settles them. Our custodian also maintains our client's accounts, can grant access to then and deliver funds and securities.
Our brokerage firm contacts:
TD Ameritrade Institutional
4075 Sorrento Valley Blvd, Suite A
San Diego, CA 92121
independence@tdameritrade.com, http://www.advisorservices.com
Independence Service Team
Eric Marney, Team Manager
800-431-3500 ext. 500301
Eric.Marney@tdameritrade.com
Independence Service Team
Scott Parker, Team Manager
800-431-3500 ext. 500199
Scott.Parker@tdameritrade.com
Office Locations
Our office address and phone number are:
3643 Cortez Road, Suite 110, Bradenton, Florida, 34210, (941) 791-9198
Client Servicing, Order Taking, Order Entry, Investment Management
2977B Manchester Road
P.O. Box 440 Manchester, MD 21102, 410-902-6546
Client Servicing, Order Taking, Order Entry, Investment Management
Our employees may travel to that office by means of car and foot. We engage in client servicing, order taking and entry at this location.
Alternative Physical Location(s) of Employees
In the event of an SBD that makes it impossible or impractical to use any or all of the company offices, we will move our staff from affected offices to the closest of our unaffected office locations.
If none of our other office locations is available, we will move the firm operations to:
6033 34th St W, #9, Bradenton, FL 34210, 941-209-8766
An additional alternate location is:
5048 Grave Run Road Manchester, MD 21102, 410-241-9072
Clients’ Access to Funds and Securities
Our firm does not maintain custody of clients’ funds or securities, which are maintained at our brokerage firm. In the event of an internal or external SBD, if telephone service is available, our registered representatives will take customer orders or instructions and contact our brokerage firm on their behalf, and if our Web access is available, our firm will post on our Web site that clients may access their funds and securities by contacting them.
Data Back-Up and Recovery (Hard Copy and
Electronic)
Our firm maintains its primary hard copy books and records and its electronic records at:
3643 Cortez Road, Suite 110, Bradenton, Florida, 34210, (941) 791-9198
Randall McDole is responsible for the maintenance of these books and records. Our
firm maintains the following document types and forms that are not transmitted to our brokerage firm: Investment Policy Statements, Client Contracts and other related documents.
The firm backs up its electronic records daily online using Redtail Technology, and keeps a copy at Redtail Technology, 11291 Pyrites Way, Suite B Gold River, CA 95670, 800-206-5030
In the event of an internal or external SBD that causes the loss of our paper records, we will physically recover them from our back-up site. If our primary site is inoperable, we will continue operations from our back-up site or an alternate
location. For the loss of electronic records, we will either physically recover the storage media or electronically recover data from our back-up site, or, if our primary site is inoperable, continue operations from our back-up site or an alternate location.
Operational Assessments
Operational Risk
In the event of an SBD, we will immediately identify what means will permit us to communicate with our clients, employees, critical business constituents, and regulators. Although the effects of an SBD will determine the means of alternative communication, the communications options we will employ will include our Web site, telephone voice mail, secure e-mail, etc. In addition, we will retrieve our key activity records as described in the section above, Data Back-Up and Recovery
(Hard Copy and Electronic).
Mission Critical Systems
Our firm’s “mission critical systems” are those that ensure client communication, access to client accounts and trading systems. More specifically, these systems include the office computer systems.
We have primary responsibility for establishing and maintaining our business relationships with our clients. Our brokerage firm provides the execution, comparison, allocation, clearance and settlement of securities transactions, the maintenance of customer accounts, access to customer accounts, and the delivery of funds and securities.
Our brokerage firm contract provides that our brokerage firm will maintain a business continuity plan and the capacity to execute that plan.
Our brokerage firm represents that it backs up our records at a remote site. Our brokerage firm represents that it operates a back-up operating facility in a geographically separate area with the capability to conduct the same volume of business as its primary site. Our brokerage firm has also confirmed the effectiveness of its back-up arrangements to recover from a wide scale disruption by testing.
Recovery-time objectives provide concrete goals to plan for and test against. They are not, however, hard and fast deadlines that must be met in every emergency situation, and various external factors surrounding a disruption, such as time of day, scope of disruption, and status of critical infrastructure—particularly telecommunications—can affect actual recovery times. Recovery refers to the restoration of clearing and settlement activities after a wide-scale disruption; resumption refers to the capacity to accept and process new transactions and payments after a wide-scale disruption. Our brokerage firm has the following SBD recovery time objectives: recovery time period of critical, core trading functions
[e.g., within 4 hours]; and critical, non-core trading functions [e.g., within the 24-72 hours] following a disruption.
Our Firm’s Mission Critical Systems
Trading
Currently, our firm enters trades by recording them on paper and electronically and sending them to our brokerage firm electronically or telephonically. Alternatively, we place customer orders by fax, etc.
In the event of an internal SBD, we will enter and send records to our brokerage firm by the fastest alternative means available. In the event of an external SBD, we will maintain the order in electronic or paper format, and deliver the order to
the brokerage firm by the fastest means available when it resumes operations. In addition, during an internal SBD, we may need to refer our clients to deal directly with our brokerage firm for order entry.
Client Account Information
We currently access client account information via the brokerage firm website. In the event of an internal SBD, we would access client information via fax correspondence, alternate phone systems, etc.
Alternate Communications with Clients,
Employees, and Regulators
Clients
We now communicate with our clients using the telephone, e-mail, our Web site, fax, U.S. mail, and in person visits at our firm or at the other’s location. In the event of an SBD, we will assess which means of communication are still available to us, and use the means closest in speed and form (written or oral) to the means that we have used in the past to communicate with the other party. For example, if we have communicated with a party by e-mail but the Internet is unavailable, we
will call them on the telephone and follow up where a record is needed with paper copy in the U.S. mail.
Employees
We now communicate with our employees using the telephone, e-mail, and in person. In the event of an SBD, we will assess which means of communication are still available to us, and use the means closest in speed and form (written or oral) to the means that we have used in the past to communicate with the other party.
Regulators
We communicate with our regulators using the telephone, e-mail, fax, U.S. mail, and in person. In the event of an SBD, we will assess which means of communication are still available to us, and use the means closest in speed and form (written or oral) to the means that we have used in the past to communicate with the other party.
Regulatory Reporting
Our firm is subject to regulation by the state of Florida. We now file reports with our regulators using paper copies in the U.S. mail, and electronically using fax, email, and the Internet. In the event of an SBD, we will check with the SEC and/or other relevant regulators to determine which means of filing are still available to us, and use the means closest in speed and form (written or oral) to our previous filing method. In the event that we cannot contact our regulators, we will continue to file required reports using the communication means available to us.
Regulatory Contact:
Florida, Office of Financial Regulation
200 East Gaines Street
Tallahassee, FL 32399
850-410-9893
Death of Key Personnel
The following personnel are identified as “Key Personnel” without which it would be
difficult or impossible to continue operating the firm and/or properly service clients: Matthew Doyle, President, Daily Operation
Randall McDole, COO, Planning and Marketing
If some event made it impossible for any person listed above able to continue to service the firm, the firm would implement the following:
Clients of the firm would, with little difficulty, be able to obtain similar services elsewhere. Their custodial accounts would not depend on the well being of the key personel. TD Ameritrade has advisor available for future service.
Updates and Annual Review
Our firm will update this plan whenever we have a material change to our operations, structure, business, or location or to those of our brokerage firm. In addition, our firm will review this BCP annually, to modify it for any changes in our
operations, structure, business, or location or those of our brokerage firm.
All supervised persons below do certify that they have: (a) received a copy of the code; (b) read and understand all provisions of the code; and (c) agreed to comply with the terms of the code.
Approval & Signature
Supervisor Approval
Approve the firm’s Business Continuity Plan (BCP) program by signing below.
I have approved this Business Continuity Plan as reasonably designed to enable our firm to meet its obligations to clients in the event of an SBD.