Disclosures
B. RILEY CAPITAL MANAGEMENT LEGAL DISCLOSURES
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). Please notify the sender by email if you are not the intended recipient. If you are not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. B. Riley Capital Management, Inc. ("BRCM") 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. BRCM 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 BRCM 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 BRCM's formal written confirmation. This message is for information purposes only and is not an investment recommendation or a solicitation. Past performance is not indicative of future returns. All information is subject to change without notice. Unless indicated, these views are the author's and may differ from those of the firm or others in the firm. BRCM does not represent this is accurate or complete and may not update this information.
As a provider of services that
involve compiling personal and sometimes, sensitive information, protecting the
confidentiality of that information has been, and will continue to be, a top
priority for B. Riley Capital Management, LLC ("BRCM"). BRCM generally collects and uses information
about clients in order to deliver quality service to them and to comply with
legal and regulatory requirements.
Confidential information that BRCM receives from clients on subscription
agreements, account opening documentation and/or other forms, may include, but
is not limited to, the client's name, address, telephone number, occupation,
social security number or tax identification number, and information pertaining
to the client's financial status (i.e. net worth, annual income, etc.).
Other than as required or
permitted by law, BRCM will not disclose our clients' nonpublic personal
information except to any unaffiliated third parties unless BRCM has previously
informed the client in agreements, has provided disclosure to the client (with
the opportunity to "opt-out"), or has otherwise been authorized by the
client.
In the ordinary course of
business, BRCM may share information pertaining to a client's account with our affiliates
servicing the account, non-affiliated third parties that perform various
services for us related to a client's account, such as clearing firms,
custodians, fund administrators, auditors and attorneys, and other
non-affiliated third parties as required or permitted by law, such as
regulatory bodies. Access to client information within BRCM will be limited to
those employees and affiliated entities who are involved in offering or
administering client accounts. We maintain physical, electronic and procedural
safeguards that comply with federal standards to guard client nonpublic
information.
If you reside in California, you
can make the following requests with respect to your personal information:
- Access - You can request that we disclose to
you the categories of personal information collected about you, the
categories of sources from which the personal information is collected,
the categories of personal information sold (if applicable) or disclosed,
the business or commercial purpose for collecting and selling (if
applicable) the personal information, the categories of third parties with
whom we share the personal information, and/or the specific pieces of
personal information collected about you over the past 12 months.
- Deletion - You can request that we delete your
personal information that we maintain about you, subject to certain
exceptions.
- Opt-out - For purposes of this privacy policy,
"sell" means the sale, rental, release, disclosure, dissemination,
availability, transfer, or other oral, written, or electronic
communication of your personal information to an outside party for
monetary or other valuable consideration. Based on our understanding of
California law, we do not sell your personal information, so we do not
offer the opt-out right.
We will not discriminate against
you because you made any of these requests. California residents can make these
requests by emailing us at IACompliance@brileyam.com
or by calling us toll-free (866) 263-4867. We may deny certain requests, or
fulfill a request only in part, based on our legal rights and obligations. For
example, we may retain personal information as permitted by law, such as for
tax or other record keeping purposes, to maintain an active account, and to
process transactions and facilitate customer requests. We will take reasonable
steps to verify your identity prior to responding to your requests. The
verification steps will vary depending on the sensitivity of the personal
information and whether you have an account with us. California residents may
designate an authorized agent to make a request on their behalf. When
submitting the request, please ensure the authorized agent is identified as an
authorized agent. For purposes of these requests, please note the following
regarding how we collect and use your personal information as described in this
policy:
- We collect and use the following categories of
personal information as set forth in the California Consumer Privacy Act
of 2018: identifiers; personal information categories listed in Cal. Civ.
Code § 1798.80(e); commercial information; internet or other electronic
network activity information; and professional or employment-related
information.
- We collect these categories of personal information
from you, your devices, publicly available sources, our affiliates, our
service providers, and our business partners.
- We use these categories of personal information for
our business and commercial purposes described above of this Policy.
- We disclose these categories of personal information
to our affiliates, service providers, business and advertising partners,
law enforcement, and potential acquirers of our business, as described
above in this policy.
B. Riley Securities Legal Disclosures
B. Riley Securities provides you with access to the Bank Deposit Sweep Program ("BDSP") which is a core account investment vehicle used to hold a cash balance that is awaiting initial investment or reinvestment. If you choose to participate, cash balances in your account will be automatically swept into interest-bearing deposit accounts at one or more federally insured banking institutions that participate in B. Riley Security's BDSP. All deposits held at each bank will be eligible to be insured by the Federal Deposit Insurance Corporation (the "FDIC") generally up to a total of $250,000 principal and accrued interest per depositor. For more information about this program and a complete list of disclosures, please contact the Compliance Department.
B. Riley Securities seeks to execute its customers' orders at the most favorable terms reasonably available under prevailing market conditions. B. Riley Securities 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 our routing of U.S. equity and option orders are made publicly available, at no cost to you, on a quarterly basis. Please refer to the section entitled "SEC Rule 606: Quarterly Report on Routing of Customer Orders" for more information. B. Riley Securities conducts regular reviews to ensure that clients are getting the best executions on trades.
B. Riley Securities, Inc. ("B. Riley Securities") has a business continuity plan to protect the interests of our clients, shareholders and employees, and to facilitate the recovery of our core businesses in the event of a significant business interruption. The plan outlines core functions and the resources required to conduct them. It also details what we plan to do to recover them in the event of a disaster that affects our ability to function at our main locations. Our business continuity plan addresses: data backup and recovery; mission critical systems; financial and operational assessments; alternative communications with customers, employees and regulators; alternate physical locations of employees; critical supplier, contractor, bank and counter-party impacts; regulatory reporting; and customer assurance of prompt access to funds and securities if B. Riley Securities becomes unable to continue its business. B. Riley Securities is an introducing firm and does not perform its own or others' clearing functions. We do not hold customer's securities or funds. B. Riley Securities employs National Financial Services LLC ("NFS") as the clearing agent for its broker-dealer operations. In this capacity, NFS compares, allocates, clears and settles all B. Riley Securities transactions. NFS maintains our customers' accounts, and in the event of disaster, can grant customers access to them to deliver securities and funds. NFS has implemented a business continuity plan whose primary objectives are to meet the needs of customers. Each NFS department has developed the capabilities to recover both operations and systems. All continuity plans are designed to account for disruptions of various lengths and scopes, and to ensure that critical functions are recovered to meet their business objectives. Critical business groups operate from multiple sites. Dedicated teams within our technology organizations ensure that critical applications and data have sufficient redundancy and availability to minimize the impact of an event. In the event of a significant business interruption that prevents us from remaining in business, we will assure our customers' prompt access to any funds and securities custodied by our clearing agent. In such a catastrophic event, clients are directed to call NFS at (800) 801-9942 to inquire about their holdings and/or place orders. We intend to communicate with customers about the status of our disruptions through our website or by means of telephonic recordings.
Personal checks and wire transfers are the only form of monetary deposits that will be accepted into your account. All incoming checks or wires from third parties must be confirmed with the client at the time of deposit to determine the business reason behind the third-party deposit. B. Riley Securities reserves the right to refuse any deposit.
If you have granted discretionary trading over your account to a third party, you can revoke such discretionary authority for any of your accounts at any time. Should you wish to cancel such discretionary handling of your account, please contact the Compliance Department as listed above.
By transacting with B. Riley Securities, you consent to a pre-dispute arbitration clause in which you agree as follows:
- All parties have given up the right to sue each other in court, including the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed.
- Arbitration awards are generally final and binding; a party's ability to have a court reverse or modify an arbitration award is very limited.
- The ability of the parties to obtain documents, witness statements, and other discovery is generally more limited in arbitration than in court proceedings.
- The arbitrators do not have to explain the reason(s) for their award unless, in an eligible case, a joint request for an explained decision has been submitted by all parties to the panel at least 20 days prior to the first scheduled hearing date.
- The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry.
- The rules of some arbitration forums may impose time limits for bringing a claim in arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court.
- The rules of the arbitration forum in which the claim is filed, and any amendments thereto, have been incorporated into this agreement.
All controversies that may arise between you, B. Riley Securities and NFS, concerning any subject matter, issue or circumstance whatsoever (including, but not limited to, controversies concerning any account, order or transaction, or the continuation, performance, interpretation or breach of this or any other agreement between you, B. Riley Securities and NFS whether entered into or arising before, on or after the date this account is opened) shall be determined by arbitration in accordance with the rules then prevailing of FINRA or any United States securities self-regulatory organization or United States securities exchange of which the person, entity or entities against whom the claim is made is a member, as you may designate. If you designate the rules of a United States self-regulatory organization or United States securities exchange and those rules fail to be applied for any reason, then you shall designate the prevailing rules of any other United States securities self-regulatory organization or United States securities exchange of which the person, entity or entities against whom the claim is made is a member. If you do not notify B. Riley Securities in writing of your designation within five (5) days after such failure or after you receive from B. Riley Securities a written demand for arbitration, then you authorize B. Riley Securities and/or NFS to make such designation on your behalf. The designation of the rules of a United States self-regulatory organization or United States securities exchange is not integral to the underlying agreement to arbitrate. You understand that judgment upon any arbitration award may be entered in any court of competent jurisdiction. No person shall bring a putative or certified class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement against any person who has initiated in court a putative class action; or who is a member of a putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until: (i) the class certification is denied; or (ii) the class is decertified; or (iii) the customer is excluded from the class by the court. Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this agreement except to the extent stated herein.
Monthly account statements and physical trade confirmations for DVP/RVP accounts or master/sub-accounts can be suppressed upon receipt of authorization by the account owner or authorized individual. In order to elect this option, an NFS DVP/RVP Account Statement Mailing Suspension Consent Form is required to be completed, signed and returned to Operations-brs@brileyfin.com. This suspension shall remain in effect until such a time as B. Riley FBR is notified to reinstate the delivery of statements. Any suppressed statements are available to the account owner promptly upon request. For more information or to receive the required form, please email your request to Operations-brs@brileyfin.com.
All trades should be affirmed by the contra firm no later than the settlement date. In the event that a trade is not affirmed or is unknown (commonly called "dk'd" or "don't know"), post-settlement interest charges may be incurred and passed along to you as the customer. In the event that you or your firm is short a position and cannot deliver in a timely fashion, please notify Operations-brs@brileyfin.com. Should a potential buy-in occur we will make every attempt to notify you, the customer, at least 24 hours in advance.
Pursuant to the Securities Exchange Act of 1934 Release No. 36345 (Oct. 1995) and Release No. 37182 (May 1996) and the terms of your customer agreement, you have consented to receive prospectus delivery electronically. Generally, a prospectus will be sent via email with a hyperlink to the actual prospectus included in the body of the email. If you do not consent to the electronic delivery of prospectuses, please notify Operations-brs@brileyfin.com.
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). Please
notify the sender by email if you are not the intended recipient. If you are
not the intended recipient, you are hereby notified that any dissemination,
distribution or copying of this communication is strictly prohibited. B. Riley
Securities, Inc. ("BRS") 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 BRS accepts any liability
for any errors or omissions arising as a result of transmission. Any
information contained in this electronic message is for information purposes
only and is not an investment recommendation or a solicitation, an offer or
solicitation to buy or sell any security. While such information has been
obtained from sources believed to be reliable, its accuracy is not guaranteed.
All information is subject to change without notice.
Unless indicated, the views included in the
message are the author's and may differ from those of the firm or others in the
firm. BRS does not represent it is accurate or complete and may not update this
information. Any references to the terms of executed transactions should be
treated as preliminary only and subject to BRS's formal written confirmation.
BRS may make markets and effect transactions, including transactions contrary
to any recommendation herein, or have positions in the securities mentioned
herein, or derivatives thereof. BRS may also have performed investment banking
services for the issuers of such securities. In addition, employees of BRS or
its affiliates may have positions and effect transactions in the securities or
derivates thereof, and may serve as directors of such issuers.
This disclosure is provided to customers who will engage in trading outside normal market hours. 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 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, it 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, 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.
Created by FINRA in 1988, and formerly known as the Public Disclosure Program, FINRA BrokerCheck provides investors with an easy, free way to learn about the professional background, business practices, and conduct of FINRA-registered firms and their brokers. To request information under this program, visit the FINRA Web site at http://brokercheck.finra.org, or call (800) 289-9999. Through this internet site or hotline, you can request a public report of background information on FINRA registered firms and their brokers. This report reflects information provided by the broker, the firms, and regulators as part of the securities industry's registration and licensing process. Should you have any complaints or disputes relating to your account please contact ControlRoom@brileyfin.com.
Customers with a minimum of $250,000 in assets in their B. Riley Securities accounts may be eligible to participate in a fully-paid lending program offered by our clearing firm. In a "fully paid" transaction you can lend a specific security to our clearing firm and in return you will receive collateral in the form of cash and securities held at a custodial bank. In addition, you receive an interest rate-based fee. Participation in this program is optional and requires the completion of additional paperwork. Please note that there are risks associated with participation in this program some of which include:
- Fully-paid securities on loan are not covered under the provisions of the Securities Investor Protection Act of 1970.
- Under the securities lending agreement you relinquish your ability to exercise voting rights.
- Fully paid securities on loan are no longer eligible for margin treatment or buying power calculations.
- Securities that pay dividends will be paid as "cash-in-lieu" which may have different taxable consequences than receipt of actual dividends.
For a full list of disclosures or for more information on this program please contact the Compliance Department as listed above.
Personal checks and wire transfers are the only form of monetary deposits that will be accepted into your retail brokerage account. All incoming checks or wires from 3rd parties must be confirmed with the client at the time of deposit to determine the business reason behind the 3rd party deposit. B. Riley Securities reserves the right to refuse any deposit.
When you place an order with your sales representative, you may specify that your order is handled on either a "not held" or "held" basis. A "not held" order means that you have given B. Riley Securities discretion as to the price and time of execution of your order. If given a "held" order, B. Riley Securities will not have discretion on handling your order and must execute it at the prevailing market price; or, if it's a "held" limit order, any execution will take place at the limit price or better, if available. As "not held" orders give B. Riley Securities the flexibility to work your order to seek to obtain the best execution reasonably available under the prevailing circumstances, your orders will be treated as "not held" unless we are specifically instructed to treat the order differently. Please note that, under FINRA Rules, a "not held" order does not have price protection. Consequently, there is no Limit Order Protection (i.e. no Manning obligation) for these orders and B. Riley Securities is not required to match incoming market orders with unexecuted better-priced limit orders. Nonetheless, any purchase and sale transactions must be consistent with our efforts to provide best execution of your orders. Please notify your sales representative at the time you place your order if you wish your order to be treated other than "not held".
High yield debt securities (also known as "junk bonds") generally involve a higher degree of risk and are typically rated BB or less by Standard and Poor's or Ba or below by Moody's. The following disclosures apply to these securities:
- The bond may default resulting in loss of investment.
- Markets for such bonds may be relatively illiquid, impacting the investor's ability to sell and the price of the bond.
In a low-interest, low-yield environment, there may be a compression of risk premium resulting from investors bidding up prices and driving down yields while default rates remain high.
You agree to indemnify B. Riley Securities from, and hold B. Riley Securities harmless for, any losses (meaning claims, damages, actions, demands, investment losses, or other losses, as well as any costs, charges, attorneys' fees, or other fees and expenses) resulting from your actions or failures to act, whether intentional or not, including losses resulting from actions taken by third parties, except to the extent that any losses described above result solely from the gross negligence or willful misconduct of B. Riley Securities. Beyond taking reasonable steps to verify the authenticity of instructions, B. Riley Securities has no obligation to inquire into purpose, wisdom, or propriety of any instructions we receive.
Information is an asset. The Firm has a duty and responsibility to protect. The confidentiality, integrity and availability of complete and accurate information is essential to the Firm functioning in an efficient manner and providing products and services to clients. The Firm holds and processes confidential and personal information on private individuals, employees, partners and suppliers, and information relating to its own operations. In processing information, the Firm has a responsibility to safeguard information and prevent its misuse. The purpose and objective of the Information Security Policy is to set out a framework for the protection of the Firm's information assets:
- to protect the firm's information from threats, whether internal or external, deliberate or accidental,
- to enable secure information sharing,
- to encourage consistent and professional use of information,
- to ensure that everyone is clear about their roles in using and protecting information,
- to ensure business continuity and minimize business damage,
- to protect the firm from legal liability and the inappropriate use of information.
The Information Security Policy covers the following areas:
- Information Security Risk Management
- Information Classification and Handling
- Access Control
- Password Policy
- Hosted Services Security
- Network Security
- Server Security
- Application Security
- Database Security
- Endpoint Security
- Security Patching
- Cryptographic Controls
- Incident Response Management
- Compliance
Pursuant to FINRA Rules 5130 & 5131 (the Rules), B. Riley Securities may not sell or cause to be sold a new issue (as defined in the Rules; generally, initial public offerings ("IPOs") of equity securities) to any account in which a restricted person holds a beneficial interest unless the account qualifies for a general exemption under the Rule. In addition, there is a restriction that applies to sales to executive officers or directors of a public company or covered non-public company. B. Riley Securities requires that you sign and return an IPO Certification annually indicating whether or not your account is eligible to purchase IPO shares in accordance with the Rule. In addition, in connection with any new issue, you hereby represent that you will not act as a finder (i.e., a person who receives compensation for identifying potential investors in an offering) or in a fiduciary capacity to any managing underwriter of any new issue and that you shall notify B. Riley Securities immediately in the event that such representation ceases to be true and correct. IPO Certifications can be returned to Operations-brs@brileyfin.com.
Please note that any instant message sent from or received by B. Riley Securities personnel is subject to archiving, monitoring and production to third parties as required by applicable rules, regulations and law. Instant messages and emails may be reviewed by someone other than the intended recipient.
Institutional Suitability Certification: Affirmative Indication of Exercise of Independent Judgment (Pursuant to FINRA Rule 2111) In connection with any recommended (as defined in FINRA rules), transaction or investment strategy by B. Riley Securities, you have acknowledged on behalf of your Institution that:
- It is an Institutional Account as defined in FINRA Rule 4512(c);
- It (1) is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities; and (2) will exercise independent judgment in evaluating the recommendations of B. Riley FBR or its associated persons, unless it has otherwise notified B. Riley in writing;
- It will notify B. Riley Securities if anything in this Certification ceases to be true;
You have acknowledged that the above statements are accurate but do not waive any rights afforded under U.S. federal or state securities laws, including without limitation, any rights under Section 10(b) of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. This shall apply with respect to all recommended transactions and investment strategies involving securities that are entered into by your Institutional Account as named on the B. Riley Securities Institutional New Account Form, whether for the account of such Institutional Account or for the account of any beneficial owner that has delegated decision making authority to such Institutional Account.
Investment Advisors may request the establishment of certain subaccounts with B. Riley Securities for the purpose of executing transactions that will clear or settle at another financial institution. The limited information that is provided to B. Riley Securities is to be used primarily to assist the Investment Advisor with its recordkeeping and to hold positions for a limited duration to facilitate the transfer of assets to another financial institution. All transactions in these subaccounts will be initiated by individuals authorized to transact on behalf of the Investment Advisor, there will be no interaction with the beneficial owners of the accounts, and in fact the beneficial owners shall have no direct control over subaccounts opened with B. Riley Securities. Investment Advisors that maintain subaccounts with B. Riley Securities attest that they have in their files client authorizations to direct orders to B. Riley Securities, in a fully discretionary manner, or otherwise, for all accounts for whom they may place orders through B. Riley Securities. Investment Advisors are authorized to place orders with B. Riley Securities to purchase and sell securities, to deliver and receive securities and to request and receive payment of funds on behalf of each account. In lieu of furnishing B. Riley Securities with specific evidence of authority in connection with each account in which an order with respect to securities is given to B. Riley, the Investment Advisor agrees to indemnify and hold B. Riley Securities harmless in the event that any such account should make claim against B. Riley Securities that its execution of any order, on the basis of the Investment Advisor's instructions, was without authority. Furthermore, B. Riley Securities may rely upon the Investment Advisor's assurance that it has examined any trust instruments, corporate resolutions or other authorizing documents, and is satisfied that the person or persons who signed such document(s) were themselves properly authorized by the entity they represent. Moreover, based upon the review of such documents and other relevant information regarding its clients, the Investment Advisor is satisfied that any investment or investment decision executed through B. Riley Securities is suitable for the relevant client. Investment Advisor agrees to indemnify B. Riley Securities and hold B. Riley Securities harmless in the event that any such account should make claim against B. Riley Securities that any investment or investment decision was not suitable.
The Limit Order Display Rule obligates the Firm to reflect the price and full size of a customer's limit order (whether the Firm's customer or the customer of another broker-dealer) in the Firm's quote, if the order would improve the Firm's quote. The Rule applies to common stock, preferred stock, and convertible preferred stock. In addition, if the Firm's bid or offer is equal to the National Best Bid or Offer, the size of any customer limit order that equals the bid or offer and represents more than a de minimis change in size must be displayed. One exception to this Rule allows for customers to request that their limit orders not be displayed, either at the time of the order or prior thereto, pursuant to agreements with our customers. B. Riley Securities will treat your limit order as "not displayed" unless specifically told to display the order. Please notify your sales representative at the time you place your order if you wish your limit order to be displayed.
B. Riley Securities is furnishing this disclosure 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 this Margin Disclosure and the margin agreement provided to you by B. Riley Securities.
When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from your brokerage firm. If you choose to borrow funds in connection with your account, you will be required to open a margin account which will be carried by B. Riley Securities. Securities purchased on margin are collateral of B. Riley Securities and our clearing firm, NFS, for the loan to you. If the securities in your margin account decline in value, so does the value of the collateral supporting your loan. As a result, B. Riley Securities is required to take action, such as issue a margin call and/or sell securities or other assets in any of your accounts, in order to maintain the required level of equity in the account. It is important that you fully understand the risks involved in trading securities on margin. These risks include but are not limited to the following:
- You can lose more funds than you deposit in the margin account.
- The firm can force the sale of securities or other assets in your account(s).
- The firm can sell your securities or assets without contacting you.
- You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call.
- The firm can increase its "house" maintenance margin requirements at any time and is not required to provide you advance written notice.
- You are not entitled to an extension of time on a margin call.
- You can lose proxy voting rights for securities held in margin accounts.
- You can risk receiving payments-in-lieu of dividends where shares are lent past the ex-dividend date.
B. Riley Securities has entered into a fully disclosed clearing agreement with NFS pursuant to which NFS may perform certain processing, clearing, custodial, and financing functions for your brokerage firm with respect to your account. NFS extends the margin credit to you and carries your margin loan. NFS is a beneficiary of your representations, warranties, acknowledgments, and covenants in the margin agreement (including, without limitation, your authorizations, indemnifications, waivers, and releases) to the same extent as if they were made directly by you to NFS. NFS, in its own name and for its own benefit, is entitled to exercise and enforce directly against you the margin agreement, all other rights granted to your brokerage firm, and the rights of the "firm" and "brokerage firm" described in this disclosure statement.
B. Riley Securities is a market maker in a number of NASDAQ and OTC Markets securities; as such we have the capability to execute orders on a "net" basis. A "net" transaction is defined as a principal transaction in which a market maker, after having received an order to buy (sell) an equity security, purchases (sells) the equity security at one price (to/from another broker-dealer or another customer) and then sells to (buys from) the customer at a different price. Unless instructed otherwise at the time the order has been placed, B. Riley Securities may treat your order as a "net" transaction. Trades will be confirmed on a net basis with the following understanding: The price per share or other unit of trading will reflect a net price which includes the addition of any mark-up for purchase transactions or the deduction of any mark-down for sale transactions, where mark-ups or mark-downs apply. In the event a transaction includes a commission, the net price will reflect any added commission for purchases or deducted commissions for sales. If the above is not consistent with your desire for confirming trades on a net basis, please notify your sales representative at the time you place your order that you do not want your order to be transacted on a "net" basis.
Options involve risk and are not suitable for all investors. Prior to buying or selling an option, investors must read a copy of the Characteristics & Risks of Standardized Options, also known as the options disclosure document (ODD). It explains the characteristics and risks of exchange traded options. Copies of this document can be viewed at https://www.theocc.com/about/publications/character-risks.jsp, or may be requested by contacting your B. Riley Securities representative for physical delivery.
Remuneration in the form of cash, liquidity rebates, order swapping or other reciprocal arrangements may be received by B. Riley Securities for directing orders to specific brokers and dealers or market centers for execution. When such remuneration is received it is considered compensation to the firm. The source and amount of such remuneration, if any, will be furnished to you upon written request. Absent specific instructions from customers, all orders received that are the subject of payment for order flow are directed to the source that offers customers the best execution. Notwithstanding the previous paragraph regarding payment for order flow, B. Riley Securities selects certain market centers to provide execution of over-the-counter and exchange-listed securities transactions which agree to accept orders, transmitted electronically up to a specified size, and to execute them at or better than the national best bid or offer (NBBO). On certain larger orders, or if the designated market centers do not make a market in the subject security, B. Riley Securities directly contacts market centers to obtain an execution. The designated market centers to which orders are automatically routed are selected based on the consistent high quality of their executions in one or more market segments and their ability to provide opportunities for executions at prices superior to the NBBO.
Penny stocks are low-priced shares of small companies. Penny stocks may trade infrequently which means that it may be difficult to sell penny stock shares once you have them. Because it may also be difficult to find quotations for penny stocks, they may be impossible to accurately price. While penny stocks generally trade over-the-counter, they may also trade on U.S. securities exchanges, facilities of U.S. exchanges, or foreign exchanges. You should learn about the market in which the penny stock trades to determine how much demand there is for this stock and how difficult it will be to sell. Investors in penny stock should be prepared for the possibility that they may lose their whole investment. Additional information about low-priced securities-including penny stocks-is available on the SEC's Web site at https://www.sec.gov/reportspubs/investor-publications/investorpubsmicrocapstockhtm.html. B. Riley Securities will send you a copy of this information upon request.
In addition to the privacy policies of our clearing firm, NFS, (http://fiiscontent.fidelity.com/769536.pdf) B. Riley Securities has in place policies and procedures to ensure that our client's privacy is protected. It is the policy of B. Riley Securities not to disclose our clients' nonpublic personal information except to our affiliates servicing your account, to non-affiliated third-party service providers as allowable by law, or in response to inquiries from regulators or government authorities. Information is shared with our affiliates and vendors servicing your account only in the ordinary course of business. In all other cases where information is shared, express written consent must be acquired from the client. Any party that receives this information will use it only for the services required and as allowable under law and is not permitted to share this information for any other purpose.
In the normal course of business, information pertaining to your account may be shared with non-affiliated third parties that perform various services for us such as clearing firms, custodians, auditors and attorneys, and other non-affiliated third parties as required or permitted by law, such as regulatory bodies. Non-public information that B. Riley Securities receives from you on your new account documents and/or other forms, includes, but is not limited to, your name, address, telephone number, occupation, social security number or tax identification number, and information pertaining to your financial status (i.e. net worth, annual income, etc.). Access to client information within B. Riley Securities will be limited to those employees and service providers who are involved in offering or administering the products and services that we offer. We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic information. B. Riley Securities will adhere to these policies for both current and former clients and will notify customers of our policy at the time the relationship is established and annually thereafter. In the event that it becomes necessary to disclose any nonpublic information in a means inconsistent with this policy, we will provide you with advanced notice so that you will have the opportunity to opt out of such disclosure should you choose.
If you reside in California, you can make the following requests with respect to your personal information:
- Access - You can request that we disclose to you the categories of personal information collected about you, the categories of sources from which the personal information is collected, the categories of personal information sold (if applicable) or disclosed, the business or commercial purpose for collecting and selling (if applicable) the personal information, the categories of third parties with whom we share the personal information, and/or the specific pieces of personal information collected about you over the past 12 months.
- Deletion - You can request that we delete your personal information that we maintain about you, subject to certain exceptions.
- Opt-out - For purposes of this privacy policy, "sell" means the sale, rental, release, disclosure, dissemination, availability, transfer, or other oral, written, or electronic communication of your personal information to an outside party for monetary or other valuable consideration. Based on our understanding of California law, we do not sell your personal information, so we do not offer the opt-out right.
We will not discriminate against you because you made any of these requests. California residents can make these requests by emailing us at ControlRoom@brileyfin.com or by calling us toll-free (833) 774-0208. We may deny certain requests, or fulfill a request only in part, based on our legal rights and obligations. For example, we may retain personal information as permitted by law, such as for tax or other record keeping purposes, to maintain an active account, and to process transactions and facilitate customer requests. We will take reasonable steps to verify your identity prior to responding to your requests. The verification steps will vary depending on the sensitivity of the personal information and whether you have an account with us. California residents may designate an authorized agent to make a request on their behalf. When submitting the request, please ensure the authorized agent is identified as an authorized agent. For purposes of these requests, please note the following regarding how we collect and use your personal information as described in this policy:
- We collect and use the following categories of personal information as set forth in the California Consumer Privacy Act of 2018: identifiers; personal information categories listed in Cal. Civ. Code § 1798.80(e); commercial information; internet or other electronic network activity information; and professional or employment-related information.
- We collect these categories of personal information from you, your devices, publicly available sources, our affiliates, our service providers, and our business partners.
- We use these categories of personal information for our business and commercial purposes described above of this Policy.
- We disclose these categories of personal information to our affiliates, service providers, business and advertising partners, law enforcement, and potential acquirers of our business, as described above in this policy.
View important research disclosures here.
Pursuant to Securities Exchange Act Rule 15c3-5, broker-dealers with market access are obligated to establish, document, and maintain a system of risk management controls and supervisory procedures reasonably designed to manage financial, regulatory, and other risks of this business activity. This includes: preventing the entry of orders that exceed appropriate pre-set credit or capital thresholds in the aggregate for each customer. In order to set appropriate customer trading threshold, we may require certain information about your Firm's trading activities and Assets Under Management ("AUM"). This information may be requested at the time of account opening and annually thereafter.
As a market maker, B. Riley Securities is required to make publicly available reports that categorize order executions and include statistical data about execution quality for orders covered under Rule 605.
2024: July - B. Riley Securities has no covered orders for this month. June - B. Riley Securities has no covered orders for this month. May - B. Riley Securities has no covered orders for this month. April - B. Riley Securities has no covered orders for this month. March - B. Riley Securities has no covered orders for this month. February - B. Riley Securities has no covered orders for this month. January - B. Riley Securities has no covered orders for this month.
2023: December - B.
Riley Securities has no covered orders for this month.
November - B.
Riley Securities has no covered orders for this month.
October - B.
Riley Securities has no covered orders for this month.
September - B.
Riley Securities has no covered orders for this month.
August - B.
Riley Securities has no covered orders for this month.
June - B.
Riley Securities has no covered orders for this month.
May - B.
Riley Securities has no covered orders for this month.
April - B.
Riley Securities has no covered orders for this month.
March - B.
Riley Securities has no covered orders for this month.
February - B.
Riley Securities has no covered orders for this month.
January - B.
Riley Securities has no covered orders for this month.
2022: December - B. Riley Securities has no covered orders for this month. November - B. Riley Securities has no covered orders for this month. October - B. Riley Securities has no covered orders for this month. September - B. Riley Securities has no covered orders for this month. August - B. Riley Securities has no covered orders for this month. July - B. Riley Securities has no covered orders for this month. June - B. Riley Securities has no covered orders for this month. May - B. Riley Securities has no covered orders for this month. April - B. Riley Securities has no covered orders for this month. March - B. Riley Securities has no covered orders for this month. February - B. Riley Securities has no covered orders for this month. January - B. Riley Securities has no covered orders for this month.
2021: December - B. Riley Securities has no covered orders for this month. November - B. Riley Securities has no covered orders for this month. October - B. Riley Securities has no covered orders for this month. September - B. Riley Securities has no covered orders for this month. August - B. Riley Securities has no covered orders for this month. July - B. Riley Securities has no covered orders for this month. June - B. Riley Securities has no covered orders for this month. May - B. Riley Securities has no covered orders for this month. April - B. Riley Securities has no covered orders for this month. March - B. Riley Securities has no covered orders for this month. February - B. Riley Securities has no covered orders for this month. January - B. Riley Securities has no covered orders for this month.
2020: December - B. Riley Securities has no covered orders for this month. November - B. Riley Securities has no covered orders for this month. October - B. Riley Securities has no covered orders for this month. September - B. Riley Securities has no covered orders for this month. August - B. Riley Securities has no covered orders for this month. July - B. Riley Securities has no covered orders for this month. June - B. Riley Securities has no covered orders for this month. May - B. Riley Securities has no covered orders for this month. April - B. Riley Securities has no covered orders for this month. March - B. Riley Securities has no covered orders for this month. February - B. Riley Securities has no covered orders for this month. January - B. Riley Securities has no covered orders for this month.
2019: December - B. Riley Securities has no covered orders for this month. November - B. Riley Securities has no covered orders for this month. October - B. Riley Securities has no covered orders for this month. September - B. Riley Securities has no covered orders for this month. August - B. Riley Securities has no covered orders for this month. July - B. Riley Securities has no covered orders for this month. June - B. Riley Securities has no covered orders for this month. May - B. Riley Securities has no covered orders for this month. April - B. Riley Securities has no covered orders for this month. March - B. Riley Securities has no covered orders for this month. February - B. Riley Securities has no covered orders for this month. January - B. Riley Securities has no covered orders for this month.
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. Non-directed orders are any order that the client has not specifically instructed to be routed to a particular venue for execution and that B. Riley Securities will select the execution venue on your behalf. Broker-dealers also must disclose material aspects of the relationships they maintain with the identified execution venues. Prior to January 1, 2020, B. Riley Securities published quarterly reports pursuant to Rule 606. Effective January 1, 2020, Rule 606 (a) was amended to require disclosure only for held orders in NMS securities and both held and not held orders in option contracts in NMS securities. Beginning January 1, 2020, B. Riley Securities qualifies for an exemption from publishing Rule 606(a) quarterly routing reports as we route, on average 500 or fewer covered customer orders per month.
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 Securities. Please notify your sales representative if you wish to
request either of these reports.
THIS MESSAGE CONTAINS INSUFFICIENT INFORMATION TO MAKE AN INVESTMENT DECISION. This material is a product of the B. Riley Securities, Inc. ("B. Riley Securities") Equity Sales and Trading department. It is not a product of B. Riley's Research Department, and is not to be regarded as research or a research report. Unless otherwise specifically stated, any views or opinions expressed herein are solely those of the individual author and may differ from the views and opinions expressed by B. Riley's Research Department or other B. Riley Securities departments, divisions and affiliates. B. Riley Securities and/or its affiliates may trade or make markets for its own account on a principal basis in the securities referenced in this communication. B. Riley and/or its affiliates may engage is securities transactions that are inconsistent with this communication and may have long or short positions in such securities. The information and any opinions contained herein are as of the date of this material and B. Riley Securities does not undertake any obligation to update them. All market prices, data and other information are not warranted as to the completeness or accuracy and are subject to change without notice. Past performance is not indicative of future results, and no representation or warranty, express or implied, is made regarding any matter including future performance. This material does not constitute investment advice, does not take into account individual client circumstances, objectives, or needs, and is not intended as a recommendation to any particular clients. Information conveyed in this material, including references to strategies, securities or other financial instruments, may not be suitable for all investors. In reaching a determination as to the appropriateness of any proposed transaction or strategy, clients should undertake a thorough independent review of the legal, regulatory, credit, accounting and economic consequences of such transaction in relation to their particular circumstances and make their own independent decisions. B. Riley Securities does not provide tax advice. As such, any information contained in Equity Sales and Trading department communications relating to tax matters were neither written nor intended by B. Riley Securities to be used for tax reporting purposes. Recipients should seek tax advice based on their particular circumstances from an independent tax advisor.
Subject to certain limited exemptions, before placing a short sale, you are required to borrow, arrange to borrow, or otherwise have reasonable grounds to believe that the security sold short can be borrowed for delivery by settlement date. Prior to executing a short sale order on your behalf B. Riley Securities will require confirmation from you that a borrow has been secured and from whom. This process is commonly referred to as "obtaining a locate." A locate is an indication that, as of the time the locate is obtained, B. Riley Securities has reasonable grounds to believe that securities will be available for borrowing on the settlement date. A locate is not a guarantee that securities will actually be available for lending and delivery on the settlement date or that the lender will not thereafter require the return of the borrowed securities at any time. If a sufficient quantity of securities is not available from our clearing firm's inventory, B. Riley Securities or our clearing firm may, among other things, contact third-party lenders to ascertain whether they have securities available for lending. If B. Riley Securities or our clearing firm determines that there are reasonable grounds to believe that a sufficient quantity of securities is borrowable, B. Riley Securities may proceed to execute the short sale on behalf of your account. If B. Riley Securities or its clearing firm is unable to determine that the shares can be borrowed, the order will not proceed at that time. If the order is executed and the securities are not available for borrowing for any reason by the settlement date, you as the seller will "fail to deliver" to the purchaser. A purchaser or securities lender may, in addition to other remedies and at any time after the giving of any required notice, buy-in the securities that were not timely delivered, and you will be responsible for all losses and costs of the buy-in.
B. Riley Securities and NFS are members of the Securities Investor Protection Corporation (SIPC), a nonprofit, congressionally chartered, membership corporation created in 1970. SIPC plays an important role in the overall system of investor protection in the United States by, in certain specified situations, restoring funds to investors with assets in the hands of bankrupt and otherwise financially troubled brokerage firms. As a member of the SIPC, funds are available to meet customer claims up to a ceiling of $500,000, including a maximum of $250,000 for cash claims. Additionally, securities in accounts carried by NFS, a Fidelity Investments company, are protected in accordance with the SIPC up to $500,000 (including up to $250,000 for cash awaiting reinvestment). NFS also has arranged for coverage above these limits. Neither coverage protects against a decline in the market value of securities, nor does either coverage extend to certain securities that are considered ineligible for coverage. 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. For more details on SIPC, or to request a SIPC brochure, visit http://www.sipc.org or call 1-202-371-8300. You may visit www.fdic.gov for additional FDIC insurance information.
The material located on the B. Riley Securities website is for informational purposes only and is not intended as a solicitation to buy or sell any securities or other financial instrument or to provide any investment advice or service. Information included on our website is subject to change at any time. The firm does not guarantee the timeliness, sequence, accuracy or completeness of information included on this website. Past performance should not be taken as an indication of guarantee of future performance and no representation, express or implied, is made regarding future performance. The firm can only conduct business if registered in states where registration is required or if business is exempt under State requirements. Check with your representative or contact our Compliance Department to get a list of states we are currently registered in. B. Riley Securities is a member of Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). B. Riley Securities does not provide tax advice; clients should contact their attorney, accountant, or other tax adviser regarding tax matters. B. Riley Securities does not take responsibility for content contained at hyperlinked sites. B. Riley Securities may make markets and effect transactions, including transactions contrary to any recommendations herein, or have positions in the securities mentioned herein (or options with respect thereto) and may also have performed investment banking services for the issuers of such securities. In addition, employees of B. Riley Securities may have positions and effect transactions in the securities or options of the issuers mentioned herein and may serve as directors of such issuers. For additional information, please contact B. Riley Securities at (310) 966-1444.
Research Conflict Management Policy
This represents a summary of certain polices adopted by B.
Riley Securities, Inc. concerning conflicts in connection with the production
and/or dissemination of Investment Research.
Content and Integrity of Research
Our research is produced for the benefit of our clients, and
our policies were created to ensure that research is independent, objective,
fair, and clear.
Integrity
Research analysts are required to observe high ethical
standards to ensure the integrity of research opinion. Research opinion is
subject to content standards, including requirements that analyst have a
reasonable basis for any opinion, and that opinions be balanced and accurately
reflect the analyst viewpoint.
Our procedures require research analysts to immediately
report any potential conflict to Research management and Compliance, who will
review the potential conflict to ensure the independence and objectivity of
analyst opinion is not compromised.
Research analysts are required to certify the opinion
presented in reports and public appearances accurately reflect their views and
that no part of the analyst's remuneration was, is, or will be directly or
indirectly related to specific recommendations or views expressed in such
reports or appearances.
Identification of Conflicts
Our policies address the requirement to identify and manage
certain conflicts that may compromise the independence of our research
analysts, including potential conflicts involving Research and Investment
Banking, Research and Sales & Trading, and Research and other departments.
All our employees are provided copies of our policies and receive
training on them, including training addressing the obligation of a research
analyst to inform Research senior management and Compliance of any such
potential conflict so that it can be reviewed and addressed before research is
published.
Our policies include Information Barriers and other controls
to restrict the sharing of information between Research and other departments.
Contacts between research analysts and investment Bankers
generally require pre-approval by their supervisors and in certain
circumstances are monitored or chaperoned by Compliance or Legal.
Our policies also require restricting and/or monitoring of Research
during the period surrounding investment banking transactions and other
potential restricted periods.
Our policies require Research supervisory approval of all
research prior to its publication, with escalation to Compliance as
appropriate, as well as a preapproval process for all research analyst public
appearances.
Supervision and
Remuneration of Research Analysts
The reporting line for all Research personnel, including senior
management, is independent from Investment Banking.
Research has sole authority to determine which issuers will
receive coverage and the timing and content of coverage, including termination
of coverage.
Research analyst remuneration is determined by Research senior
management and reviewed by a Research Analyst Compensation Committee, which
includes members from outside the Research Department but does not include
anyone from Investment Banking. Research analyst remuneration is based on a
number of factors, including the quality, scope, and depth of analyst coverage.
Analysts are eligible to receive bonus compensation that is based on overall
operating revenues, including revenues generated by Investment Banking and
Sales & Trading. Investment Banking has no input to analyst compensation or
the Research Department's budget.
Research Analyst Activities
Research analysts are not permitted to engage in activities
that would compromise the objectivity or integrity of their research.
Considerations include:
Analysts are not permitted to engage in 'pitches' for new
business or 'road shows' for new issues of financial instruments, or otherwise
engage in marketing of investment banking transactions.
Analysts are not permitted to engage in joint appearances
with an issuer or Investment Banking to our Sales & Trading personnel or to
clients in connection with an investment banking transaction.
Analysts may engage in vetting or due diligence and certain
other activities as approved in connection with potential or actual Investment
Banking clients or transactions.
While research analysts are not permitted to engage in
solicitations or marketing of specific investment banking transactions to
clients, they may serve an educational role for both Sales & Trading and
clients in connection with an investment banking transaction.
Research analyst involvement in any activities in connection
with a potential or actual investment banking transaction, including vetting or
diligence, must be approved by Research senior management and Compliance.
Inducements and
Inappropriate Influences
Research analysts are prohibited from receiving any
inducement from an issuer or otherwise in connection with research opinion.
Research analysts are not permitted to disseminate proposed
initiations of coverage, research opinion, changes in research opinion, and
terminations of research opinion outside of the Research Department until
published, with certain exceptions specifically approved by senior management
and Compliance.
Research analysts are prohibited from directly or indirectly
offering favorable research, a specific rating, a specific price target, or
threatening to change the timing or content of research or threatening to drop
coverage in connection with or in exchange for investment banking and/or sales
& trading business.
Investment Banking personnel are prohibited from directing a
research analyst to engage in marketing efforts.
Research analysts are prohibited from agreeing to be
restricted by an issuer concerning the use of information received from an
issuer and must notify Research senior management and Compliance of any such
approach.
Research analysts are required to immediately report to
Research senior management and Compliance any retaliatory actions by employees
or issuers.
All employees are prohibited from engaging in retaliatory
action against a research analyst related to analyst opinion.
Research analysts are required to certify the opinions
expressed in reports and appearances represent their personal view and that no
part of their compensation was, is, or will be directly related to the specific
recommendation or viewpoint expressed by the analyst in the report or
appearance.
Research analysts are prohibited from engaging in any
conduct that would result in them being unable to provide the aforementioned
certification.
The Research Department is physically separated from all
other offices, including Investment Banking, Sales & Trading, and other
departments.
Method and Timing of
Publication
Information concerning the timing and content of unpublished
Research opinion is limited to Research and Compliance, with certain exceptions
specifically approved by Research senior management and Compliance.
Research is distributed to clients and employees
simultaneously through B. Riley Securities, Inc.'s usual distribution channels.
Prior to its distribution, research report content may not be communicated to
anyone except as specifically approved by senior management and Compliance.
When we are involved in particular investment banking or capital markets transactions, we may restrict the distribution of research opinion. Similarly, if research analysts are in possession of material non-public information concerning the issuer, they are required to notify Compliance and will be restricted from publishing or making appearances concerning that issuer. We may also restrict research for other reasons, including required regulatory quiet periods and other business or legal reasons.
Personal Account Trading
Research analysts are subject to personal trading procedures
that generally prohibit ownership of issuers they cover, as well as issuers in
the same industry, and analysts are generally prohibited from trading in the
securities of other issuers about which they possess knowledge of any pending
unpublished research opinion. Analysts
are required to make written representations concerning these conditions and
obtain pre-approval for all transactions prior to trading.
Research analysts' outside business activities must be
pre-approved by Research senior management and Compliance. Analysts are
prohibited from engaging in outside business activities with issuers they cover
and other outside business activities that would compromise their independence
and objectivity. Analysts are prohibited from serving as officers or directors
of public companies.
Disclosure of Interests
Our research reports provide disclosures as required by
applicable regulations and by our policies, including:
- a description of our rating system.
-
the distribution of our ratings.
When applicable, except where such disclosure would reveal
material non-public information:
- the research analyst owns shares of the subject issuer.
-
we or any of our affiliates own more than 1% of the issuer's
securities.
-
we or any of our affiliates served as a manager or
co-manager of an offering of the issuers securities within the past 12 months.
-
we or any of our affiliates received compensation for
investment banking services within the past 12 months from this issuer.
-
we or any of our affiliates expect to receive or intend to
seek compensation for investment banking transactions from the issuer within
the next three months.
- we or any of our affiliates have received compensation from the issuer for non-investment banking securities services within the past 12 months.
- we or any of our affiliates, currently or within the past 12 months, engaged in lending activity or similar services with the issuer for compensation.
- we or any of our affiliates, has acted as a placement agent on a private offering of the issuer's securities.
-
we are a market maker or liquidity provider in the issuer's
securities.
-
an employee serves as an officer or director of the issuer.
-
we and/or the research analyst are subject to any other
material conflict of interest of which we are aware at the time of publication.
We may not be required to provide and may elect not to
provide, certain disclosures concerning a business relationship with an issuer,
when such disclosure would reveal material non-public information regarding
specific banking transactions with the subject company.
We may include other disclosures as we consider appropriate.
Privacy Policies
Last Updated: September 11, 2020
Introduction: What This Privacy Policy Covers
GlassRatner Advisory & Capital Group, LLC, B. Riley Advisory & Valuation Services, LLC, Great American Group Intellectual Property, LLC, and Great American Group Machinery & Equipment, LLC, collectively dba B. Riley Advisory Services ("BRAS", "we" or "our") are committed to protecting your privacy. This privacy policy ("Policy") applies to your interactions with BRAS online and offline, including this website (the "Site") and BRAS services (the "Services"). The purpose of this Policy is to disclose BRAS practices related to information we collect from you and have about you. Please read this Policy carefully.
1. Collection of Your Information
2. Use, Sharing & Disclosure of Your Information
3. California Privacy Rights
4. Minors' Use of the Services
5. Changes to the Privacy Policy
6. International Users
7. Legal Basis for Processing Personal Information
This Policy applies to our Site and Services only. When you
visit websites to which we link, you will be interacting with another party
that operates under its own privacy and security policies. Personal information
you give to another party will be subject to that party's own terms,
conditions, and policies - not this Policy. You should review the other party's
privacy policy and terms of service before providing your information or using
their services. We encourage you to review the privacy policies of any other
website or application from which you request products or services.
We and our service providers may collect information about you when
you ask us to contact you, such as:
- your name;
- your address;
- your telephone
number;
- your company
affiliation, job title, and related information;
- the nature of your
request; and/or
- your email address
In addition, if you choose to correspond with us through email, we may retain the content of your email messages together with your email address and our responses.
We and our service providers may also collect information that
you provide to us when you apply for a job, such as:
- your work history;
- your resume; and/or
- your academic background
Please see Section II of this Policy to see how we use, share and disclose information you have provided to us.
B. Information we collect
through your interaction with our Site:
We and our service providers may automatically collect
information from your access device and browser, including:
- what type of browser you use;
- processor type;
- operating system; and
- IP address
As you browse and interact with our
Site, we and our service providers may automatically collect information
related to your use of the Site, including:
- how often you visit the Site; and
- how you navigate and conduct searches on our Site
Please see Section II of this Policy to see how we may use, share and disclose information we collect through your interaction with our Site or Services.
C. Information we receive from other parties:
We may collect information about you from other sources, including publicly available sources and our Affiliates or our partners, service providers or others, in order to update or supplement information we have collected directly from you. For example, we may use Google Analytics to measure and report statistics about your device, interests, location and interactions on the Site. An "Affiliate" is a company that controls, is controlled by or is under common control with BRAS.
D. Information collected
through technological methods:
In addition, we may use, and may allow our service providers to use, technological methods such as cookies or web beacons to collect information about you. Cookies are small pieces of data that may be stored on your computer, mobile device, or other similar device and are used to make the Site easier to use and to analyze use of the site.
E. Retention of Information:
BRAS retains the information we collect for as long as necessary
to (i) provide our services to you, (ii) comply with legal obligations, (iii)
resolve disputes, and (iv) enforce our agreements.
Please see Sections II and III of this Policy to see how we use, share and disclose information collected through technological methods.
2. Use, Sharing & Disclosure of Your Information
A. How we use your information:
We use the information we collect in a variety of ways,
including:
- to operate and improve the Site;
- to understand your use of the Site;
- to communicate with you;
- to notify you about important changes to our website, new services and special opportunities we think you will find valuable; and
- to develop research reporting for us, our Affiliates and third party market research partners.
B. How we share your information:
We may share your information, including in some cases information that specifically identifies, relates to, or could be associated with you, directly or indirectly, ("personal information") such as your name, your email address, your physical address or telephone number, with Affiliates and trusted partners and service providers in ways including the following:
- to help operate the Site and Services;
- to facilitate fulfillment of a transaction or request; and
- to provide research reporting for us, our Affiliates and our service providers.
Examples of service providers may
include providers who compile and analyze data collected by us (e.g., Google
Analytics), service providers who supplement or match information we have
collected with information from other parties, market research companies,
website hosts, and email support vendors.
In addition, we may share information in the following circumstances:
- without notice, to law enforcement or government agencies in response to subpoenas, court orders, or other legal process (including civil and criminal) or otherwise as required by law;
- in connection with the actual or potential sale of our business.
Please see Section I of this Policy to see the types of information we collect.
3. California Privacy Rights
If you reside in California, you can make the following requests with respect to your personal information:
- Access - You can
request that we disclose to you the categories of personal information
collected about you, the categories of sources from which the personal
information is collected, the categories of personal information sold (if
applicable) or disclosed, the business or commercial purpose for collecting and
selling (if applicable) the personal information, the categories of third
parties with whom we share the personal information, and/or the specific pieces
of personal information collected about you over the past 12 months.
- Deletion - You can
request that we delete your personal information that we maintain about you,
subject to certain exceptions.
- Opt-out - For
purposes of this privacy policy, "sell" means the
sale, rental, release, disclosure, dissemination, availability, transfer, or
other oral, written, or electronic communication of your personal information
to an outside party for monetary or other valuable consideration. Based on our
understanding of California law, we do not sell your personal information, so
we do not offer the opt-out right.
BRAS will not discriminate against
you because you made any of these requests. California residents can make these
requests online by emailing us at emailing us at ccpa@brileyadvisoryservices.com or by calling
us toll-free at 310-966-1444.
We may deny certain requests, or fulfill a request only in part,
based on our legal rights and obligations. For example, we may retain personal
information as permitted by law, such as for tax or other record keeping purposes,
to maintain an active account, and to process transactions and facilitate
customer requests.
We will take reasonable steps to verify your identity prior to
responding to your requests. The verification steps will vary depending on the
sensitivity of the personal information and whether you have an account with
us.
California residents may designate an authorized agent to make a
request on their behalf. When submitting the request, please ensure the
authorized agent is identified as an authorized agent.
For purposes of these requests, please note the following regarding how we collect and use your personal information as described in this Policy:
- We collect and use the following categories of personal information as set forth in the California Consumer Privacy Act of 2018: identifiers; personal information categories listed in Cal. Civ. Code § 1798.80(e); commercial information; internet or other electronic network activity information; and professional or employment-related information.
- We collect these categories of personal information from you, your devices, publicly available sources, our Affiliates, our service providers, and our business partners.
- We use these categories of personal information for our business and commercial purposes described in Section II of this Policy.
- We disclose these categories of personal information to our Affiliates, service providers, business and advertising partners, law enforcement, and potential acquirers of our business, as described in Section II of this Policy.
4. Minors' Use of the Services
BRAS offers a general audience Site. This Site is not intended for children under the age of 16.
5. Changes to the Privacy
Policy
By using the Site or Services, you signify your acceptance to
this Policy. If you do not agree to this Policy, please do not use any of the
Site or Services. We reserve the right to make changes in this Policy at any
time. Please check the Policy each time you use our Site or Services to ensure
you are aware of any changes in our privacy practices. Your continued use of
our Site or Services will signify your acceptance of the changes to this
Policy. Notification of any material changes to this Policy will be posted on
the BRAS home page.
If you have any questions about this Policy please contact us
at:
B. Riley Advisory Services
11100 Santa Monica Blvd.
Suite 800
Los Angeles, CA 90025
6. International Users
The information we collect from users is processed and maintained in the United States, where privacy laws may not be as protective as in your home country. If you are using our Site or Services from outside of the United States, by providing information to us you are consenting to the transfer of the information to the United States for processing in a manner consistent with this Policy. If you are accessing this website from a European Union member state, you have the right to object to the collection and processing of your personal data as set forth in this Privacy Policy, and if you wish to do so please notify us at the address above. Please bear in mind that if you object this may affect our ability to provide you with the Services.
7. Legal Basis for Processing
Personal Information
If you are a visitor from the European Union member state, our legal basis for collecting and using the personal information described above will depend on the personal information concerned and the specific context in which we collect it. We will normally collect personal information from you only where we have your consent to do so, where we need the personal information to perform a contract with you, or where the processing is in our legitimate interests and not overridden by your data protection interests or fundamental rights and freedoms. In some cases, we may also have a legal obligation to collect personal information from you. If we collect and use your personal information in reliance on our legitimate interests (or those of any third party), such legitimate interests include: (i) improving our Site and Services; (ii) responding to inquiries from you; (iii) measuring and improving the effectiveness of our marketing activities; and (iv) transmitting data internally within our company for administrative purposes.
In addition to the privacy policies of our clearing firm, NFS, (http://fiiscontent.fidelity.com/769536.pdf) B. Riley Securities has in place policies and procedures to ensure that our client's privacy is protected. It is the policy of B. Riley Securities not to disclose our clients' nonpublic personal information except to our affiliates servicing your account, to non-affiliated third-party service providers as allowable by law, or in response to inquiries from regulators or government authorities. Information is shared with our affiliates and vendors servicing your account only in the ordinary course of business. In all other cases where information is shared, express written consent must be acquired from the client. Any party that receives this information will use it only for the services required and as allowable under law and is not permitted to share this information for any other purpose.
In the normal course of business, information pertaining to your account may be shared with non-affiliated third parties that perform various services for us such as clearing firms, custodians, auditors and attorneys, and other non-affiliated third parties as required or permitted by law, such as regulatory bodies. Non-public information that B. Riley Securities receives from you on your new account documents and/or other forms, includes, but is not limited to, your name, address, telephone number, occupation, social security number or tax identification number, and information pertaining to your financial status (i.e. net worth, annual income, etc.). Access to client information within B. Riley Securities will be limited to those employees and service providers who are involved in offering or administering the products and services that we offer. We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic information. B. Riley Securities will adhere to these policies for both current and former clients and will notify customers of our policy at the time the relationship is established and annually thereafter. In the event that it becomes necessary to disclose any nonpublic information in a means inconsistent with this policy, we will provide you with advanced notice so that you will have the opportunity to opt out of such disclosure should you choose.
If you reside in California, you can make the following requests with respect to your personal information:
- Access - You can request that we disclose to you the categories of personal information collected about you, the categories of sources from which the personal information is collected, the categories of personal information sold (if applicable) or disclosed, the business or commercial purpose for collecting and selling (if applicable) the personal information, the categories of third parties with whom we share the personal information, and/or the specific pieces of personal information collected about you over the past 12 months.
- Deletion - You can request that we delete your personal information that we maintain about you, subject to certain exceptions.
- Opt-out - For purposes of this privacy policy, "sell" means the sale, rental, release, disclosure, dissemination, availability, transfer, or other oral, written, or electronic communication of your personal information to an outside party for monetary or other valuable consideration. Based on our understanding of California law, we do not sell your personal information, so we do not offer the opt-out right.
We will not discriminate against you because you made any of these requests. California residents can make these requests by emailing us at ControlRoom@brileyfin.com or by calling us toll-free (833) 774-0208. We may deny certain requests, or fulfill a request only in part, based on our legal rights and obligations. For example, we may retain personal information as permitted by law, such as for tax or other record keeping purposes, to maintain an active account, and to process transactions and facilitate customer requests. We will take reasonable steps to verify your identity prior to responding to your requests. The verification steps will vary depending on the sensitivity of the personal information and whether you have an account with us. California residents may designate an authorized agent to make a request on their behalf. When submitting the request, please ensure the authorized agent is identified as an authorized agent. For purposes of these requests, please note the following regarding how we collect and use your personal information as described in this policy:
- We collect and use the following categories of personal information as set forth in the California Consumer Privacy Act of 2018: identifiers; personal information categories listed in Cal. Civ. Code § 1798.80(e); commercial information; internet or other electronic network activity information; and professional or employment-related information.
- We collect these categories of personal information from you, your devices, publicly available sources, our affiliates, our service providers, and our business partners.
- We use these categories of personal information for our business and commercial purposes described above of this Policy.
- We disclose these categories of personal information to our affiliates, service providers, business and advertising partners, law enforcement, and potential acquirers of our business, as described above in this policy.
Review B. Riley Wealth Management's Privacy Notice to Clients.