B. Riley Wealth Regulatory & Legal Disclosures; Notices to Investors
In accordance with the regulations set forth by the USA Patriot Act, the Bank Secrecy Act and the rules of the Office of Foreign Assets Control (OFAC), the Financial Crimes Enforcement Network (FinCEN), the SEC and FINRA, B. Riley Wealth Management has in place a program to identify and report suspicious activities that could be related to money laundering or other illegal activities and to monitor and verify the identities of our customers. What this means for you: When you open an account or otherwise establish a business relationship with B. Riley Wealth Management, we may ask for your name, address, date of birth, social security number or taxpayer ID and other information that will allow us to positively identify you. We may also ask to see your driver's license, corporate formation documents or other identifying documents as applicable.
B. Riley Wealth Management reserves the right to refuse to open any account, or to close an existing account, at any time if information requested pursuant to an AML inquiry is not provided.
B. Riley Wealth Management seeks to execute its customers' orders at the most favorable terms reasonably available under prevailing market conditions. B. Riley Wealth Management is responsible for overseeing the selection of the best market for each trade and for ensuring that the customer receives the best price. Details regarding B. Riley Wealth Management routing of U.S. equity and option orders are updated quarterly and may be found below in the section entitled Routing Disclosures Made Pursuant to SEC Rule 606. B. Riley Wealth Management conducts regular reviews to ensure that clients are getting the best executions on trades.
The paragraphs below provide a general overview of the Business Continuity Plan ("BCP") for B. Riley Wealth. A BCP is a program designed to help ensure that we can continue to do business even if we experience an unplanned business interruption such as a loss of utility service, a building evacuation, or a catastrophic event.
B. Riley Wealth's BCP addresses the action that we will take in the event a significant business disruption ("SBD") affects a single building, a business district, a citywide area, or an entire region. We have different planned recovery times depending on the severity of the SBD. In the event of a branch outage, the telephones to the branch office experiencing the SBD will be re-routed within a few hours to the main office or another branch office facility with the ability to service the needs of the clients. In the event of a short-term SBD at the main office, the telephones would be re-routed to a branch office location within several hours. In the case of a major business disruption at the main office, the firm has a plan to relocate the mission-critical employees and systems to an alternate location, which would result in a disruption of several hours to several days.
B. Riley Wealth's BCP is subject to annual review and update. In addition, the firm's regulators will periodically review the BCP for compliance. As our BCP is materially updated, the changes will be reflected here on our website. You may also contact us to request a copy of our most recent BCP by calling 1-800-726-0557 and requesting to speak with the Operations Department.
In regard to retail client assets carried by First Clearing®, NFS, or Axos (the "Clearing Firms"), we have received and reviewed the Clearing Firms' Business Continuity Plans. We are committed to providing continued service to our clients and, to that end, during a significant business disruption, B. Riley Wealth will re-establish telephone service with our clients as soon as possible. Our clients should check our website for our latest information.
For retail accounts held at Wells Fargo Clearing Services, LLC ("First Clearing"):
We recognize that as a client of B. Riley Wealth, you may need access to your account to sell a position or request a check before we re-establish telephone service with our clients. During this time, First Clearing® will assist you with sell/liquidation orders and provide check disbursements, if needed. If you cannot contact our Firm, please call First Clearing® for assistance at 877-496-3223 or visit their website at https://www.wellsfargoclearingservicesllc.com/index.htm
For retail accounts Held at National Financial Services, LLC ("NFS"):
We recognize that as a client of B. Riley Wealth, we recognize you may need access to your account to sell a position or request a check before we re-establish telephone service with our clients. During this time, NFS will assist you with sell/liquidation orders and provide check disbursements, if needed. If you cannot contact our Firm, please contact NFS for assistance at 800-801-9942.
For Retail Accounts Held at Axos Clearing, LLC ("Axos"):
We recognize that as a client of B. Riley Wealth, we recognize you may need access to your account to sell a position or request a check before we re-establish telephone service with our clients. During this time, Axos will assist you with sell/liquidation orders and provide check disbursements, if needed. If you cannot contact our Firm, please contact Axos for assistance at 402-635-2480.
B. Riley Wealth Management follows the allocation procedures for callable securities established by our clearing firms. For an explanation of this allocation process at Wells Fargo Clearing Services, LLC ("First Clearing"), visit: https://www.wellsfargoclearingservicesllc.com/disclosures/callable-securities.htm and at National Financial Services, LLC ("NFS"), visit: https://www.mybrokerageinfo.com/callable-securities-lottery-disclosure. To request a written copy of the Callable Securities Disclosure, please contact your Financial Professional.
The Federal Deposit Insurance Corporation (FDIC) insurance coverage in our Bank Deposit Sweep utilizes four Wells Fargo & Company banks ("Program Banks"). If the Bank Deposit Sweep is the cash sweep vehicle for your brokerage account, uninvested cash balances in your account are automatically deposited into the Bank Deposit Sweep. For more on the Cash Sweep Program at First Clearing, visit: https://www.wellsfargoclearingservicesllc.com/disclosures/cash-sweep-program.htm and at NFS, visit: https://static.fmgsuite.com/media/documents/f847d258-90ff-4165-a73b-d34a32784191.pdf
If you have any questions or complaints regarding your account, please call 901-251-1330.
Michael Markunas, General Counsel
& Chief Compliance Officer
B. Riley Wealth Management Compliance Department
40 S. Main, Suite 1800
Memphis, TN 38103
Order Execution Disputes Must Be Submitted in Writing
Please note that reports of execution of orders shall be conclusive if you do not object to them in writing within the shorter of (i) the applicable settlement cycle of the subject transactions or (ii) three business days after such documents have been transmitted to you by mail or otherwise. Your statements of account(s) shall be conclusive if you do not object to them in writing within 10 days after transmission to you by mail or otherwise.
B. Riley Wealth Management, Inc.
Attn: Compliance Department
40 S. Main, Suite 1800
Memphis, TN 38103
The information on this site is provided 'AS IS'. B. Riley Wealth does not warrant the accuracy of the materials provided herein, either expressly or impliedly, for any particular purpose and expressly disclaims any warranties of merchantability or fitness for a particular purpose. This information is for informative purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any product. B. Riley Wealth will not be responsible for any loss or damage that could result from interception by third parties of any information made available to you via this site. Although the information provided to you on this site is obtained or compiled from sources we believe to be reliable, B. Riley Wealth cannot and does not guarantee the accuracy, validity, timeliness or completeness of any information or data made available to you for any particular purpose. Neither B. Riley Wealth, nor any of its affiliates, directors, officers or employees, nor any third party vendor will be liable or have any responsibility of any kind for any loss or damage that you incur in the event of any failure or interruption of this site, or resulting from the act or omission of any other party involved in making this site or the data contained therein available to you, or from any other cause relating to your access to, inability to access, or use of the site or these materials, whether or not the circumstances giving rise to such cause may have been within the control of B. Riley Wealth or of any vendor providing software or services support. In no event will B. Riley Wealth, its affiliates or any such parties be liable to you for any direct, special, indirect, consequential, incidental damages or any other damages of any kind even if B. Riley Wealth or any other party have been advised of the possibility thereof.
The following disclosure statement is applicable if the email you have received contains a third party (non-B. Riley Wealth Management) research report as an attachment:
Please direct any questions regarding this information to the author of the email sent to you and not to the Investment Research Provider, its analysts or other representatives.
Investment Research Providers prepare research reports. The information in these reports is not personalized investment advice and is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments, or strategies mentioned in these reports may not be suitable for all investors. Information and opinions regarding specific securities do not take into account individual circumstances, objectives, or needs and are not intended as recommendations of particular securities, financial instruments, or strategies. You should evaluate this report in light of your own circumstances. Opinions and estimates constitute the Investment Research Provider's judgment as of the date of these reports and are subject to change without notice. These reports may have been made available to us before being made available to you (our client). We are solely responsible for the distribution and use of these reports.
Research Reports from Third Party Affiliated Companies
B. Riley Wealth Management, Inc. ("BRWM") is a wholly owned subsidiary of B. Riley Financial. B. Riley Securities, Inc. (f/k/a B. Riley FBR) is also a subsidiary of B. Riley Financial and an affiliate of BRWM. Through its affiliation as part of the B. Riley Financial family of companies, BRWM has made arrangements to receive and distribute research reports prepared by B. Riley Securities, Inc. BRWM is pleased to provide you with the attached third-party research report, which has been prepared by an affiliated company. Important information about the report and its preparation is provided at the end of the report, or in an appendix to the report, including information relating to activities involving, or relationships between, the company(ies) covered in the report and the affiliate preparing the report, as well as BRWM and other B. Riley Financial affiliates. You should read that information carefully. The report reflects the personal views of the analyst(s) preparing the report as of the time it was prepared. The Firm believes the report is objective and reliable and is based on data from sources the author(s) of the report believe to be reliable. We note, however, that the report is not guaranteed as to accuracy and does not purport to be complete.
For important disclosures related to the relationship between BRWM and certain companies that are subject to these third-party research reports please review the disclosure section titled Third Party Research Disclosure.
For up-to-date B. Riley Securities, Inc. covered company disclosures, please refer to section above titled B. Riley Securities, Inc. Research Disclosures for additional information.
IMPORTANT NOTICES: The information contained in this electronic message (including any attachments) is privileged and confidential information intended only for the use of the recipient(s) named above. Please notify the sender by email if you are not the intended recipient. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. B. Riley Wealth Management, Inc. ("BRWM") does not accept time sensitive, action-oriented messages or transaction orders, including orders to purchase or sell securities, via email or by any other electronic means. BRWM reserves the right to monitor and review the content of all messages sent to or from this email address. Messages sent to or from this email address are stored by a third-party vendor and may be provided to regulators upon request. Neither the sender nor BRWM accepts any liability for any errors or omissions arising as a result of transmission. Any information contained in this electronic message is not an offer or solicitation to buy or sell any security, and while such information has been obtained from sources believed to be reliable, its accuracy is not guaranteed. Any references to the terms of executed transactions should be treated as preliminary only and subject to our formal written confirmation.
This disclosure is provided to customers who will engage in trading outside normal market hours. "Extended trading hours" means trading outside of regular trading hours. "Regular trading hours" means the time between 9:30 a.m. and 4:00 p.m. Eastern Standard Time. Such trading involves certain risks explained below.
- Risk of Lower Liquidity. Liquidity refers to the ability of market participants to buy and sell securities. Generally, the more orders that are available in a market, the greater the liquidity. Liquidity is important because with greater liquidity it is easier for investors to buy or sell securities and, as a result, investors are more likely to pay or receive a competitive price for securities purchased or sold. There may be lower liquidity in extended hours trading as compared to regular market hours. As a result, your order may only be partially executed, or not at all.
- Risk of Higher Volatility. Volatility refers to the changes in price that securities undergo when trading. Generally, the higher the volatility of a security, the greater its price swings. There may be greater volatility in extended hours trading than in regular market hours. As a result, your order may only be partially executed or not at all, or you may receive an inferior price in extended hours trading than you would during regular market hours.
- Risk of Changing Prices. The prices of securities traded in extended hours trading may not reflect the prices either at the end of regular market hours or upon the opening of the next morning. As a result, you may receive an inferior price in extended hours trading than you would during regular market hours.
- Risk of Unlinked Markets. Depending on the extended hours trading system or the time of day, the prices displayed on a particular extended hours trading system may not reflect the prices in other concurrently operating extended hours trading systems dealing in the same securities. Accordingly, you may receive an inferior price in one extended hours trading system than you would in another extended hours trading system.
- Risk of News Announcements. Normally, issuers make news announcements that may affect the price of their securities after regular market hours. Similarly, important financial information is frequently announced outside of regular market hours. In extended hours trading, these announcements may occur during trading, and if combined with lower liquidity and higher volatility, may cause an exaggerated and unsustainable effect on the price of a security.
- Risk of Wider Spreads. The spread refers to the difference in price between what you can buy a security for and what you can sell it for. Lower liquidity and higher volatility in extended hours trading may result in wider than normal spreads for a particular security.
- Risk of Lack of Calculation or Dissemination of Underlying Index Value or Intraday Indicative Value ("IIV"). For certain Derivative Securities Products (such as exchange-traded funds, or ETFs), an updated underlying index value or IIV may not be calculated or publicly disseminated in extended trading hours. Since the underlying index value and IIV are not calculated or widely disseminated during the pre-market and post-market sessions, an investor who is unable to calculate implied values for certain Derivative Securities Products in those sessions may be at a disadvantage to market professionals.
B. Riley Wealth Management brokerage accounts are assessed an annual fee that varies based upon account type. Additional fees apply to certain services which you may request from time to time. A Commission Schedule is available through your B. Riley Wealth Management Financial Professional or by sending a request to Contact Us.
FINRA is the Financial Industry Regulatory Authority, a self-regulatory organization that oversees securities firms and stockbrokers. FINRA offers unbiased information on a full range of issues that affect your money and investments. On FINRA's website, www.finra.org, you can find facts and tools as well as background information on both firms and brokers.
In accordance with FINRA Rule 2267, B. Riley Wealth Management, Inc. is providing the following information in the event you wish to contact FINRA. You may contact FINRA at 301-590-6500 or by mail at 1735 K Street NW, Washington, DC 20006-1500. In addition, investors may utilize the BrokerCheck hotline (800-289-9999) or the FINRA Seniors Helpline (844-574-3577). For more information on FINRA, see the document titled "Putting Investors First" at http://www.finra.org/sites/default/files/InvestorDocument/p014341.pdf.
Prior to the sale of a CMO to any person other than an institutional investor, B. Riley Wealth Management offers educational material that includes a discussion of the characteristics and risks of CMOs including credit quality, prepayment rates and average lives, interest rates (including their effect on value and prepayment rates), tax considerations, minimum investments, transaction costs and liquidity. Additionally, the educational material discusses the structure of a CMO, including the various types of tranches that may be issued and the rights and risks pertaining to each (including the fact that two CMOs with the same underlying collateral may be prepaid at different rates and may have different price volatility), the relationship between mortgage loans and mortgage securities, questions an investor should ask before investing, and finally a glossary of terms related to CMOs.
You can obtain a copy of the educational material, the Investors Guide: Mortgage-Backed Securities (MBS) and Collateralized Mortgage Obligations (CMOS), from your Financial Professional or access it online at www.investinginbonds.com or directly here: http://www.investinginbonds.com/learnmore.asp?catid=5&subcatid=23.
The U.S. Department of Labor recently issued a new rule pertaining to investment advice provided to retirement investors, called Improving Investment Advice for Workers & Retirees. The rule applies to retirement accounts governed by the Employee Retirement Income Security Act (ERISA) and/or the Internal Revenue Code (Code), including Individual Retirement Accounts (IRA) and Education Savings Accounts (ESA). Pursuant to the rule, we are providing the following acknowledgment:
When we provide "investment advice," as defined under Title I of ERISA or the Code, to you regarding your retirement plan account, IRA, or ESA, we are fiduciaries within the meaning of ERISA and/or the Code. The way we make money creates some conflicts with your interests, so when we operate as a fiduciary for your retirement account(s) we operate under a special rule, PTE 2020-02, that requires us to act in your best interest and not put our interest ahead of yours. To the extent that particular communications to you or activities are considered "investment education" or otherwise non-fiduciary under ERISA, we are not a fiduciary in connection with such communications or activities.
Under this special rule's provisions, we must:
- Meet professional standards of care when making investment recommendations (give prudent advice);
- Never put our financial interests ahead of yours when making recommendations (give loyal advice);
- Avoid misleading statements about conflicts of interest, fees, and investments;
- Follow policies and procedures designed to ensure that we give advice that is in your best interest;
- Charge no more than is reasonable for our services; and
- Give you basic information about conflicts of interest.
The Department of Labor has published a guide available on the Department of Labor website entitled, Choosing the Right Person to Give You Investment Advice: Information for Investors in Retirement Plans and Individual Retirement Accounts.
B. Riley Wealth Management, Inc. ("BRWM") is furnishing this information to you to provide some basic facts about purchasing securities on margin, and to alert you to the risks involved with trading securities in a margin account. Before trading stocks in a margin account, you should carefully review the margin agreement provided by BRWM. Please contact your Financial Professional regarding any questions or concerns you may have with your margin account(s).
When you purchase securities through BRWM, you may pay for the securities in full or you may borrow part of the purchase price from BRWM's clearing firm ("Clearing Firm"). If you choose to borrow funds, you will need to open a margin account with BRWM. The securities purchased are the Clearing Firm's collateral for the loan to you. If the securities in your account decline in value, so does the value of the collateral supporting your loan. And, as a result, the Clearing Firm or BRWM can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held with the member, in order to maintain the required equity in the account.
It is important that you fully understand the risks involved in trading securities on margin. These risks include the following:
You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to provide additional funds to the Clearing Firm, the firm that has made the loan, to avoid the forced sale of those securities or other securities or assets in your accounts).
The Clearing Firm or BRWM can sell your securities or other assets without contacting you. Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that the brokerage firm cannot liquidate securities or other assets in their accounts to meet the call unless the brokerage firm has contacted them first. This is not the case. Most firms will attempt to notify their customers of margin calls, but they are not required to do so. However, even if a firm has contacted a customer and provided a specific date by which the customer can meet a margin call, the firm can still take necessary steps to protect its financial interests, including immediately selling the securities without notice to you.
The Clearing Firm or BRWM can force the sale of securities or other assets in your account(s). If the equity in your account falls below the maintenance margin requirements or the Clearing Firm's higher "house" requirements, the Clearing Firm can sell the securities or other assets in any of your accounts held at the firm to cover the margin deficiency. You also will be responsible for any shortfall in the account after such a sale.
You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call. Because the securities are collateral for the margin loan, the Clearing Firm or BRWM has the right to decide which security to sell in order to protect its interests.
The Clearing Firm or BRWM can increase its "house" maintenance margin requirements at any time and is not required to provide you advance written notice. These changes in firm policy often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the call may cause the Clearing Firm or BRWM to liquidate or sell securities in your account(s).
You are not entitled to an extension of time on a margin call. While an extension of time to meet margin requirements may be available to customers under certain conditions, a customer does not have a right to the extension.
Securities in your margin account may be loaned to or by the Clearing Firm. To the extent the Clearing Firm determines, in accordance with Federal tax regulations, that your securities have been loaned, payments received by you with respect to such securities (including payments in lieu of dividends) may be reclassified as substitute payments. Substitute payments may be reported on different tax reporting forms than payments received on the underlying securities and may be subject to different tax consequences and rates. You are advised to contact your tax advisor to discuss the tax treatment of substitute payments.
To satisfy the requirements of MSRB rule G-10, you are hereby notified that B. Riley Wealth Management is registered with the U.S. Securities and Exchange Commission and the Municipal Securities Rulemaking Board ("MSRB"). For more information about the MSRB please visit their website at www.msrb.org Additionally, customers may access the MSRB Investor Brochure, which describes the protections that may be provided by the MSRB rules and how to file a complaint with an appropriate regulatory authority, by accessing the following web page: http://msrb.org/msrb1/pdfs/MSRB-Investor-Brochure.pdf.
Before investing in mutual funds, it is important that you understand the sales charges, expenses, and management fees that you will be charged, as well as the breakpoint discounts to which you may be entitled. Understanding these charges and breakpoint discounts will assist you in identifying the best investment for your particular needs and may help you reduce the cost of your investment. This disclosure will give you general background information about these charges and discounts. However, sales charges, expenses, management fees, and breakpoint discounts vary from mutual fund to mutual fund. Therefore, you should discuss these issues with your Financial Professional and review each mutual fund's prospectus and statement of additional information, which are available from your Financial Professional, to get the specific information regarding the charges and breakpoint discounts associated with a particular mutual fund. To learn more about the impact of fees and potentially available discounts on mutual funds, visit FINRA's Fund Analyzer at: https://www.finra.org/investors/tools-and-calculators/using-finra-fund-analyzer
- Breakpoint Discounts - Most mutual funds offer investors a
variety of ways to qualify for breakpoint discounts on the sales charge
associated with the purchase of Class A shares. In general, most mutual funds
provide breakpoint discounts to investors who make large purchases at one time.
The extent of the discount depends upon the size of the purchase. Generally, as
the amount of the purchase increases, the percentage used to determine the
sales load decreases. In fact, the entire sales charge may be waived for
investors that make very large purchases of Class A shares. Mutual fund
prospectuses contain tables that illustrate the available breakpoint discounts
and the investment levels at which breakpoint discounts apply. Additionally,
most mutual funds allow investors to qualify for breakpoint discounts based
upon current holdings from prior purchases through "Rights of
Accumulation," and future purchases, based upon "Letters of
Intent." This document provides general information regarding Rights of
Accumulation and Letters of Intent. However, mutual funds have different rules
regarding the availability of Rights of Accumulation and Letters of Intent.
Therefore, you should discuss these issues with your Financial Professional and
review the mutual fund prospectus to determine the specific terms upon which a
mutual fund offers Rights of Accumulation or Letters of Intent.
- Letters of Intent - Most mutual funds allow investors
to qualify for breakpoint discounts by signing a Letter of Intent, which
commits the investor to purchasing a specified amount of Class A shares within
a defined period of time, usually 13 months. For example, if an investor plans
to purchase $50,000 worth of Class A shares over a period of 13 months, but
each individual purchase would not qualify for a breakpoint discount, the
investor could sign a Letter of Intent at the time of the first purchase and
receive the breakpoint discount associated with $50,000 investments on the
first and all subsequent purchases. Additionally, some funds offer retroactive
Letters of Intent that allow investors to rely upon purchases in the recent
past to qualify for a breakpoint discount. However, if an investor fails to
invest the amount required by the Letter of Intent, the fund is entitled to
retroactively deduct the correct sales charges based upon the amount that the
investor actually invested. If you intend to make several purchases within a 13
month period, you should consult your Financial Professional and the mutual
fund prospectus to determine if it would be beneficial for you to sign a Letter
of Intent. Understanding the availability of breakpoint discounts is important
because it may allow you to purchase Class A shares at a lower price. The
availability of breakpoint discounts may save you money and may also affect
your decision regarding the appropriate share class in which to invest.
Therefore, you should discuss the availability of breakpoint discounts with
your Financial Professional and carefully review the mutual fund prospectus and
its statement of additional information, which you can get from your Financial
Professional, when choosing among the share classes offered by a mutual fund.
If you wish to learn more about mutual fund share classes or mutual fund
breakpoints, you may wish to review the investor alerts available on the FINRA
website. See www.finra.org or
visit the public website of the applicable mutual fund company.
- Rights of Accumulation - Many mutual funds allow investors
to count the value of previous purchases of the same fund, or another fund
within the same fund family, with the value of the current purchase, to qualify
for breakpoint discounts. Moreover, mutual funds allow investors to count
existing holdings in multiple accounts, such as IRAs or accounts at other
broker-dealers, to qualify for breakpoint discounts. Therefore, if you have
accounts at other broker-dealers and wish to take advantage of the balances in
these accounts to qualify for a breakpoint discount, you must advise your Financial
Professional about those balances. You may need to provide documentation
establishing the holdings in those other accounts to your Financial
Professional if you wish to rely upon balances in accounts at another firm. In
addition, many mutual funds allow investors to count the value of holdings in
accounts of certain related parties, such as spouses or children, to qualify
for breakpoint discounts. Each mutual fund has different rules that govern when
relatives may rely upon each other's holdings to qualify for breakpoint discounts.
You should consult with your Financial Professional or review the mutual fund's
prospectus or statement of additional information to determine what these rules
are for the fund family in which you are investing. If you wish to rely upon
the holdings of related parties to qualify for a breakpoint discount, you
should advise your Financial Professional about these accounts. You may need to
provide documentation to your Financial Professional if you wish to rely upon
balances in accounts at another firm. Mutual funds also follow different rules
to determine the value of existing holdings. Some funds use the current net
asset value (NAV) of existing investments in determining whether an investor
qualifies for a breakpoint discount. However, a small number of funds use the
historical cost, which is the cost of the initial purchase, to determine
eligibility for breakpoint discounts. If the mutual fund uses historical costs,
you may need to provide account records, such as confirmation statements or monthly
statements, to qualify for a breakpoint discount based upon previous purchases.
You should consult with your Financial Professional and review the mutual
fund's prospectus to determine whether the mutual fund uses either NAV or
historical costs to determine breakpoint eligibility.
- Sales Charges -
Investors that purchase mutual funds must make certain choices, including which funds to purchase and which class share is most advantageous. Each mutual fund has a specified investment strategy. You need to consider whether the mutual fund's investment strategy is compatible with your investment objectives. Additionally, most mutual funds offer different share classes. Although each share class represents a similar interest in the mutual fund's portfolio, the mutual fund will charge you different fees and expenses depending upon your choice of share class. As a general rule, Class A shares carry a "front-end" sales charge or "load" that is deducted from your investment at the time you buy fund shares. This sales charge is a percentage of your total purchase. As explained below, many mutual funds offer volume discounts to the front-end sales charge assessed on Class A shares at certain pre-determined levels of investment, which are called "breakpoint discounts." In contrast, Class B and C shares usually do not carry any front-end sales charges. Instead, investors that purchase Class B or C shares pay asset-based sales charges, which may be higher than the charges associated with Class A shares. Investors that purchase Class B and C shares may also be required to pay a sales charge known as a contingent deferred sales charge when they sell their shares, depending upon the rules of the particular mutual fund.
The Chicago Board Options Exchange regularly publishes educational materials for investors regarding options. Prior to buying or selling an option, investors must read a copy of this disclosure document. It explains the characteristics and risks of exchange traded options.
The latest "Characteristics and Risks of Standardized Options," as well as all supplements to the original 1994 pamphlet, can be viewed at https://www.theocc.com/about/publications/character-risks.jsp or may be requested from your Financial Professional for physical delivery.
B. Riley Wealth Management is required by the U.S. Securities and Exchange Commission ("SEC") to provide the following disclosure statement: http://www.sec.gov/investor/schedule15g.htm. It explains some of the risks of investing in penny stocks. Please read it carefully before you agree to purchase or sell a penny stock.
Rule 605 of SEC Regulation NMS requires "market centers" to publicly disclose, on a monthly basis, certain statistical information relating to the quality of executions provided to eligible client orders. The information generally depicts how orders of various sizes are executed relative to public quotes existing at the time of order receipt, and also attempts to measure speed of execution. B. Riley Wealth Management does not act as a market center as defined by Rule 605 of SEC Regulation NMS and does not have a Rule 605 reporting obligation.
Rule 606(a) of SEC Regulation NMS requires broker-dealers receiving non-directed client orders to publicly disclose, on a quarterly basis, the top execution venues to which such orders are routed for execution. Broker-dealers also must disclose material aspects of the relationships they maintain with the identified execution venues. For customer orders transmitted to Wells Fargo Clearing Services, LLC, Wells Fargo Clearing Services makes the routing decisions concerning these orders without regard to the identity of the introducing broker and routes orders to selected market makers and exchanges for execution. As such, B. Riley Wealth Management has adopted by reference Wells Fargo Clearing Services' Rule 606 disclosure report with respect to customer orders transmitted to Wells Fargo Clearing Services. B. Riley Wealth Management has reviewed Wells Fargo Clearing Services' 606 disclosure report and believes it accurately represents, in all material respects, the order routing practices for B. Riley Wealth Management's customer orders transmitted to Wells Fargo Clearing Services. B. Riley Wealth Management does not receive any payment for order flow from Wells Fargo Clearing Services. Wells Fargo Clearing Services' 606 disclosure report is available for public review online here.
For customer orders handled by our internal trading desk or transmitted to National Financial Services, Rule 606 disclosures can be found here.
Pursuant to SEC Rules 606(b)(1) and 606(b)(3), customers may request, free of charge, reports detailing the routing and executions of their orders placed with B. Riley Wealth Management. Please notify your financial professional if you wish to request either of these reports.
B. Riley Wealth Management, Inc., and its Clearing Firms are members of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request at www.sipc.org, or by calling (202) 371-8300.
Note that SIPC coverage is not the same as, nor is it a substitute for, FDIC deposit insurance. Securities purchased through our brokerage firm are not FDIC-insured; however, cash in some account types may be covered by FDIC insurance and not by SIPC coverage. You may visit www.fdic.gov for additional FDIC insurance information.
Above and beyond SIPC coverage, the Clearing Firms may maintain additional insurance coverage. The additional protection does not protect against losses from the failure of a security, ensure the quality of investments, or protect against losses from fluctuating market value. All coverage is subject to the specific policy terms and conditions. Information on your specific coverage is located in the documentation provided at account opening.
B. Riley Wealth Management, Inc. and B. Riley Wealth Advisors, Inc. ("B. Riley Wealth") financial professionals may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site.
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