(January 1, 2012)
SAKL’s principal business is to act as a securities Broker/Dealer in accordance with all laws, rules and regulations applicable to Broker/Dealers and the business conducted by Broker/Dealers. As a securities Broker/Dealer, SAKL’s principal business is to provide investment related services to customers introduced to the Firm by Registered Representatives (“REPS”) associated with the Firm on an independent contractor basis. In addition, SAKL is a Registered Investment Advisor (“RIA”) overseen by the State of Colorado, Division of Securities. SAKL is an introducing Broker/Dealer and utilizes the services of National Financial Services, LLC (“NFS”) to act as its clearing agent. NFS's principal business is to act as a securities clearing firm in accordance with all laws, rules and regulations applicable to securities clearing firms and the business conducted by securities clearing firms. As a securities clearing firm, NFS's principal business is to provide, pursuant to a written clearing agreement that allocates roles, duties and responsibilities between the clearing or "carrying" firm (NFS) and the "introducing" or "correspondent" broker dealer (see, e.g., NYSE Rule 382 and FINRA Rule 3230), and on a "fully disclosed" basis, certain limited and defined "back office" securities clearing, custodial and processing services.
In its capacity as a securities Broker/Dealer and in its capacity as a RIA, SAKL receives and/or comes in contact with certain nonpublic personal information concerning its current and/or former customers for whom SAKL provides or has provided financial services, including, but not limited to certain nonpublic personal information related to customers securities accounts. Any and all such nonpublic personal information related to such customers and/or such customers’ securities account(s) is hereinafter referred to as “nonpublic personal information.” SAKL receives and/or comes into contact with the nonpublic personal information only for purposes of conducting its business as described above. For convenience herein, “you” or “your” refers to any and all customer(s) described above.
NO SALE OF YOUR NONPUBLIC, PERSONAL INFORMATION
SAKL DOES NOT SELL YOUR NONPUBLIC,
NONPUBLIC PERSONAL INFORMATION COLLECTED
In conducting its business as described above, SAKL collects (or may collect), for example, the following types of nonpublic personal information:
A) Information from you: (1) information you provide in connection with any securities account, margin loan, debit card or any other financial product or service, whether in writing, in person, by telephone, electronically or by any other means, such as your name, address, social security number, tax ID number, assets, income, investment objectives, financial situation and debt; and (2) information SAKL obtains (or may obtain) for the purpose of tax reporting to you and to the various agencies to which, through its clearing agent, NFS, reports as required by law, including disclosures on various Internal Revenue Service ("IRS") forms that NFS collects for tax reporting purposes.
B) Information about your securities and/or other transactions: (1) information SAKL and NFS collects and relates to account balance, payment history, trading activity and any other transactions which SAKL and NFS provide securities clearing services; (2) information SAKL and NFS collect as part of servicing your account(s), either as a securities Broker/Dealer or clearing firm and (3) information SAKL and NFS collect through an Internet “cookie” (an information collecting device from a web server).
C) Information about your transactions with nonaffiliated third parties: (1) information from nonaffiliated third parties pursuant to law, rules, regulations, standard securities industry practice and/or legal process, including information and/or documents received, shared, produced or provided in connection with a subpoena, discovery request or other legal process compelling production; and (2) information from nonaffiliated third parties related to servicing your account for purposes of providing financial services and/or securities clearing services.
D) Information from a consumer-reporting agency: (1) information from a consumer reporting agency regarding your creditworthiness or credit history or other information with regards to margin lending or other financial transactions; and (3) information from other outside sources regarding their employment of, credit to or other relationship with you, or verifying representations made by you, such as your employment history, loan or credit card balances.
NONPUBLIC PERSONAL INFORMATION DISCLOSED
NFS discloses to affiliates and nonaffiliated third parties nonpublic personal information only in connection with NFS providing securities clearing services or in respect of conducting Brokerage Service business. Such disclosures include, among other things, information related to transactions, settlement, billing, payment, processing, clearing, transferring, reconciling, collection and tax reporting. Such disclosures may be provided to affiliates and nonaffiliated third parties: (i) as required or necessary to carry out fully and properly the securities business conducted by NFS (such as, for example, disclosures to affiliated and nonaffiliated third party service providers supplying to NFS computer related, document processing and delivery, and data maintenance or processing services, and disclosures to nonaffiliated third parties such as securities clearing agencies and entities); (ii) as required by law or legal process; or (iii) with your consent.
NFS will disclose nonpublic personal information about the former customers of NFS's introducing securities broker dealers or of Brokerage Service only as permitted and/or required by law or legal process, or with your consent.
CONFIDENTIALITY AND SECURITY OF NONPUBLIC,
NFS is committed to implementing and maintaining commercially reasonable and appropriate measures to maintain your nonpublic personal information in a secure and confidential fashion. NFS’s information and security procedures include, but are not limited to, the following features:
Access controls on customer information systems, including controls to authenticate and permit access only to authorized individuals and controls to prevent NFS employees from providing nonpublic personal information to unauthorized individuals who may seek to obtain this information through fraudulent means.
Physical access restrictions at locations containing nonpublic personal information, such as buildings, computer facilities and record storage facilities to restrict access to unauthorized individuals.
Encryption, where appropriate, of electronic customer nonpublic personal information.
Stringent pre-employment screening, including fingerprinting, and segregation of duties for NFS employees with responsibilities for or access to nonpublic personal information.
Monitoring systems and procedures to detect actual and attempted attacks on or intrusions into information systems containing nonpublic personal information.
Response programs that specify actions to be taken when NFS suspects or detects that unauthorized individuals may have gained access to nonpublic personal information.
NFS regularly reviews, revises and updates its information security program to account for changes in technology.