IMPORTANT COMPLIANCE ALERT:
Securities Backed Line of Credit (SBLOC) Procedures
This Compliance Alert is a reminder of the firm’s SBLOC Policies and Procedures.
As a result of an SEC 2018 Examination of LFAS’s SBLOC business in mid-2019, the firm amended its SBLOC policies to include additional requirements as follows:
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Securities Baked Line of Credit Disclosure. This document must be provided to the client at the time paperwork is being completed for SBLOC. Note that this document will soon be available through the automated “Disclosure Document Delivery & Form CRS” process that will be deployed during the next few weeks.
Please note that Compliance will be conducting periodic audits for adherence to the firm’s policies and procedures on SBLOC accounts, including current accounts, and that compliance fines will be assessed for failure to follow firm policies and procedures.
It is important that all Advisors writing SBLOC business adhere to these policies and procedures.
If you have any questions about the firm’s policies and/or procedures, please reach out to your Branch Manager.
