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Dear Client:
Arque Capital shares your concerns about privacy. We understand that you want to know how we handle personal information we secure from you or other sources in the course of providing you with investment products and services.
What kind of personal information do we have, and where did we get it?
Most, if not all, of the personal information that we have about you comes directly from you. Your Financial Advisor records information that you provide, such as your name and address, financial information, investment experience, occupation and address of employer, birth date, social security number, e-mail address, phone number, etc. We also keep and maintain records of any securities or money position held in your account. We may also collect personal information from outside sources, including consumer reporting agencies and CRD (Central Registration Depository) if you are, or were, associated with the securities industry.
What do we do with the personal information we have about you?
It is our policy not to disclose any personal information to non-affiliates that might use your personal information to contact you about their own products and services. We educate our employees to protect your personal information. Within Arque Capital, your personal information is available only to those individuals who are involved in servicing your financial needs or in supervisory activities. Your Financial Advisor will use your personal information to help evaluate your financial position and establish appropriate investment objectives. This information may be used, if appropriate, to make recommendations to you about specific products and services,
Under certain conditions, we may, as permitted by law and without your permission provide personal information to persons or servicing agents (securities clearing organizations such as National Financial Services LLC, a Fidelity Investments company), regulatory or law-enforcement authorities, and persons requesting information pursuant to a subpoena or court order.
Finally, should your relations with Arque Capital end, your personal information will remain protected in accordance with our privacy practices outlined in this notice.
How can you find out what information we have about you?
You may ask to see or obtain a copy of any personal information we have in our records. If any of the information is believed to be incomplete or inaccurate, you may request that we make any necessary and appropriate changes. Please send any request to Arque Capital Ltd., 411 North Central Boulevard, Suite 302, Glendale, CA 91203.
We hope you have found this communication helpful. If you have any questions or would like more information, please don’t hesitate to contact your Arque representative.
Sincerely,
Arque Capital Ltd.
Arque Capital Ltd. Business Continuity Plan
Arque Capital has developed a Business Continuity Plan on how we will respond to events that significantly disrupt our business. The timing and impact of natural and other disasters and disruptions are unpredictable. We will need to be flexible in responding to individual events as they may occur. To that end, we are providing you with this information on our Business Continuity Plan.
Contacting Us. Should a significant business disruption occur, and you cannot contact us as you usually do, please call us at (818) 500-0318 or email us at info@arquecapital.com or call our toll free number 877-544-7870 or go to our web site at www.arquecapital.com. If you cannot access us through any of these sources, you should contact our clearing firm National Financial Services LLC (“NFS”) at 617-556-5977 or fmr.com for instructions that will provide you access to funds and securities, the ability to enter orders and process other trade-related, cash and securities transfer transactions.
Our Business Continuity Plan. In the event of any business disruption, we plan to quickly recover and resume business operations and will take action to safeguard our employees and property, make financial and operational assessments, protect the firm’s books and records, and allow our clients to transact business. Our business continuity plan is designed to permit our firm to resume operations as quickly as possible, consistent with the scope and severity of business disruption.
Our business continuity plan addresses: data back up and recovery; all systems critical to our mission; financial and operational assessments; alternative communications with clients, employees and regulators; alternate physical location of employees; bank and counter-party impact; critical suppliers, contractors, reporting to regulators; and providing our clients access to their funds and securities if we are unable to continue our business.
Our clearing firm, NFS, backs up our important records in a geographically separate location. While every emergency situation poses unique problems based on external factors, such as time of day and the severity of the disruption, our clearing firm has advised us that its objective is to restore its own operations and be able to complete existing transactions and accept new transactions and payment within one or two business days. Your orders and requests for funds and securities could be delayed during this period.
Varying Disruptions. Significant business disruptions can vary in their scope, and may affect only our firm, a single building housing our firm, the business district where our firm or offices are located, the city where we are located or the whole region. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption confined to our firm or a building housing our firm or an office, we will transfer our operations to an alternate local site when needed and expect to recover and resume business within one day. In a disruption affecting our business district, city or region, we will transfer our operations to a site outside the affected area, and recover and resume business within one or two business days. In either situation, we plan to continue in business, transfer operations to our clearing firm if necessary and notify you though our web site www.arquecapital.com or our client emergency number 877-544-7870 on how to contact us. If the significant business disruption is so severe that it prevents us from remaining in business, we will assure our client’s access to their funds and securities.
For More Information. If you have questions about our business continuity planning, you can contact us at (310) 500-0318 or by email at info@arquecapital.com
ANTI-MONEY LAUNDERING REQURIEMENT
The USA PATRIOT Act
The USA PATRIOT Act, signed by President Bush, is designed to detect, deter and punish terrorists in the United States and abroad. The Act imposes new anti-money laundering requirements on brokerage firms and financial institutions. On April 24, 2002, all brokerage firms were required to have new, comprehensive anti-money laundering programs.
To help you understand these efforts, we want to provide you with some information about money laundering and our steps to implement the USA PATRIOT Act.
What is money laundering?
Money Laundering is the process of disguising illegally obtained money so that the funds appear to come from legitimate sources or activities. Money laundering occurs in connection with a wide variety of crimes, including illegal arms sales, drug trafficking, robbery, fraud, racketeering and terrorism.
How big is the problem and why is it important?
The use of the U.S. financial system by criminals to facilitate terrorism or other crimes could well taint our financial markets. According to the U.S. State Department, one recent estimate puts the amount of worldwide money laundering activity at $1 trillion a year.
What are we required to do to eliminate money laundering?
Under new rules required by the USA PATRIOT Act, our anti-money laundering program must designate a special compliance officer, set up employee training, conduct independent audits, and establish policies and procedures to detect and report suspicious transactions and ensure compliance with the new laws.
As part of our required program, we may ask you to provide various identification documents or other information. Until you provide the needed information or documents , we may not be able to open an account or effect transactions for you.
We thank you for your patience and hope that you will support us in our
efforts to deny terrorist groups access to America’s financial system.
Copywrite 2002 National Association of Securities Dealers, Inc. (NASD) - All rights reserved.
Margin Disclosure Statement
Arque Capital, Ltd. is furnishing this document 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 in a margin account, you should carefully review the margin agreement provided by your firm. Please consult Arque Capital regarding any questions or concerns you may have regarding your margin accounts.
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 chose to borrow funds from your firm, you will open a margin account with the firm. The securities purchased are the firm’s collateral for the loan to you. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and as a result, the firm can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held with the firm, in order to maintain the required equity in the account.
It is important that you fully understand the risks involved in trading securities on margin. These risks include the following.
- You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to provide additional funds to the firm that has made the loan to avoid the forced sale of those securities or other securities or assets in your account(s).
- The firm can force the sale of securities or other assets in your account. If the equity in your account falls below the maintenance margin requirements of the firm’s higher “house” requirements, the firm can sell the securities or other assets in any of your accounts held at the firm to cover the margin deficiency. You also will be responsible for any shortfall in the account after such a sale.
- The firm can sell your securities or other assets without contacting you. Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that the firm cannot liquidate securities or other assets in their account to meet the call unless the firm has contacted them first. This is not the case. Most firms will attempt to notify their clients of margin calls, but they are not required to do so. However, even if a firm has contacted a client and provided a specific date by which the client can meet a margin call, the firm can still take necessary steps to protect its financial interests, including immediately selling the securities without notice to the client.
- You are not entitled to choose which securities or other assets in your account(s) are liquidate or sold to meet a margin call. Because the securities are collateral for the margin loan, the firm has the right to decide which security to sell in order to protect its interests.
- The firm can increase its “house” maintenance margin requirements at any time and is not required to provide you advance written notice. These changes in firm policy often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the call may cause the member to liquidate or sell securities in your account(s).
- You are not entitled to an extension of time on a margin call. While an extension of time to meet margin requirement may be available to clients under certain conditions, a client does not have a right to the extension.
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