Disclosure Required By New York Stock Exchange Rule 382
RBC Capital Markets, LLC ("RBC") is the New York Stock Exchange member carrying organization for Marc J. Lane & Company with which you opened your securities account. Marc J. Lane & Company is independent of RBC and retained RBC to provide certain record keeping and operational services, which may include execution and settlement of securities transactions, custody of securities and cash balances, and extension of credit on margin transactions. These services are provided under a written Clearing Agreement between RBC and Marc J. Lane & Company. It is important that you understand the responsibilities of Marc J. Lane & Company and RBC under the Clearing Agreement as outlined below.
Responsibilities of Marc J. Lane & Company
Marc J. Lane & Company has general responsibility for servicing and supervising your securities account through its own personnel in accordance with its own policies and applicable laws and regulations.
Marc J. Lane & Company is responsible for approving the opening of your account and obtaining necessary account documentation.
Marc J. Lane & Company is responsible for any investment advice, investment recommendations, or investment management services that may be provided to you. It is also responsible for determining whether particular kinds of transactions, which may be recommended to you (for instance, margin, options, and short sales), are appropriate for you.
Marc J. Lane & Company is responsible for the acceptance and, in certain instances, execution of securities orders.
Marc J. Lane & Company is responsible for knowing the facts about any orders for the purchase or sale of securities for your account.
If Marc J. Lane & Company is a market maker in any securities or otherwise trades as principal with you, it is responsible for compliance with fair pricing and disclosure responsibilities to you.
If Marc J. Lane & Company obtains possession of any cash or securities intended for your account, it is responsible for correctly identifying and promptly forwarding the same to RBC.
Marc J. Lane & Company is responsible for supervising the activities of the individual (if any) who services your account, for resolving any complaints regarding the handling of your account, and, in general, for the ongoing relationship that it has with you.
In all of the above matters relating to the servicing of your account, RBC has no involvement and assumes no responsibility.
Responsibilities of RBC
In general, RBC is only responsible for those services provided at the request or direction of Marc J. Lane & Company as contemplated by the Clearing Agreement.
RBC will create computer-based account records on your behalf in such name(s) and with such address(es) as Marc J. Lane & Company directs.
RBC will process orders for the purchase, sale, or transfer of securities for your account as Marc J. Lane & Company directs. RBC is not obligated to accept orders for securities transactions for your account directly from you and will do so only in exceptional circumstances.
RBC will receive and deliver cash and securities for your account and will record such receipts and deliveries according to information provided either by Marc J. Lane & Company or directly, in writing, by you.
RBC will hold in custody securities and cash received for your account, and will collect and disburse dividends and interest and process reorganization and voting instructions with respect to securities held in custody. RBC is responsible for the custody of your cash and securities only after it comes into RBC's physical possession or control.
RBC will prepare and transmit to you or provide facilities to Marc J. Lane & Company for the preparation and transmission of confirmations of trades. RBC will prepare and transmit periodic account statements summarizing transactions processed for your account to you.
If Marc J. Lane & Company opens a margin account for you, RBC will loan you money for the purpose of purchasing or holding securities subject to the terms of RBC's written Margin Agreement and RBC margin policies and applicable margin regulations. Marc J. Lane & Company is responsible for obtaining the initial margin as required by Regulation T. Thereafter, RBC will calculate the amount of maintenance margin required. RBC will advise you of those requirements, usually through Marc J. Lane & Company. RBC will also calculate the interest charged on your debit balance, if any.
In connection with all of the functions that RBC performs, RBC maintains the books and records required by law and by business practice.
RBC will provide Marc J. Lane & Company with written reports of all transactions processed for your account to enable it to carry out its responsibilities under the Clearing Agreement.
RBC will assist you and Marc J. Lane & Company with any discrepancies or errors that may occur in the processing of transactions for your account.
RBC DOES NOT CONTROL, AUDIT, OR OTHERWISE SUPERVISE THE ACTIVITIES OF MARC J. LANE & COMPANY OR ITS EMPLOYEES. RBC DOES NOT VERIFY INFORMATION PROVIDED BY MARC J. LANE & COMPANY REGARDING YOUR ACCOUNT OR TRANSACTIONS PROCESSED FOR YOUR ACCOUNT NOR UNDERTAKE RESPONSIBILITY FOR REVIEWING THE APPROPRIATENESS OF TRANSACTIONS ENTERED BY MARC J. LANE & COMPANY ON YOUR BEHALF.
The Clearing Agreement does not encompass transactions in commodities futures contracts or investments other than marketable securities, which RBC normally processes on recognized exchanges and over-the-counter markets.
In furnishing its services under the Clearing Agreement, RBC may use and rely upon the services of clearing agencies, automatic data processing vendors, proxy processing, transfer agents, securities pricing services, and other similar organizations.
This statement addresses the basic allocation of functions regarding the handling of your account. It is not meant as a definite enumeration of every possible circumstance, but only as a general disclosure.
For More Information
Please email us or call Marc J. Lane & Company at (312) 372-5000.