Legal and Compliance Disclosures
Legal & Compliance Disclosures: Important information about our firm & client protection
Firm Registrations:
Abraham & Co., Inc. is a Washington State registered Investment Adviser and Broker Dealer. The Firm is also registered in the states of CA, IL and ID.
The registration status of the Firm and its representatives may, and does, change from time to time. Interested parties are directed to consult FINRA’s BrokerCheck for current registration status. The Firm may not conduct business in states in which it is not registered.
Client Account Protection:
As member of the “Securities Investor Protection Corporation” (SiPC) Abraham & Co. client accounts are covered against loss of cash and/or securities in the event of theft or firm insolvency up to a ceiling of $500,000, including a maximum of $250,000 for cash claims. (See terms of SiPC Coverage below). Our custodial firm, TD Ameritrade Institutional, which holds all of our advisory clients’ cash and securities, is also covered by the same SiPC protection.
Excess Account Insurance
TD Ameritrade provides each client $149.5 million worth of protection for securities and $2 million of protection for cash through supplemental coverage provided by London insurers. In the event of a brokerage insolvency, a client may receive amounts due from the trustee in bankruptcy and then SiPC. Supplemental coverage is paid out after the trustee and SiPC payouts and under such coverage each client is limited to a combined return of $152 million from a trustee, SiPC and London insurers. The TD Ameritrade supplemental coverage has an aggregate limit of $500 million over all customers. This policy provides coverage following brokerage insolvency and does not protect against loss in market value of securities., our clearing firm maintains private insurance coverage through underwriting syndicates at Lloyd’s of London to supplement SiPC protection for client accounts up to $200 million.
Terms of SiPC Coverage:
Customers of a failed brokerage firm get back all securities (such as stocks and bonds) that already are registered in their name or are in the process of being registered. After this first step, the firm’s remaining customer assets are then divided on a pro rata basis with funds shared in proportion to the size of claims. If sufficient funds are not available in the firm’s customer accounts to satisfy claims within these limits, the reserve funds of SiPC are used to supplement the distribution, up to a ceiling of $500,000 per customer, including a maximum of $250,000 for cash claims. Additional funds may be available to satisfy the remainder of customer claims after the cost of liquidating the brokerage firm is taken into account.
Client Privacy Protection:
We consider discretion a fundamental part of our relationship with our customers and clients. We have taken substantial measures to ensure that personal and account information remains private. For details of our Privacy Policy click on the following link: Privacy Policy
Routing of Client Orders:
To avoid conflicts-of-interest and obtain best execution of orders for our brokerage customers and advisory clients, Abraham & Co. routes all trades through its clearing agent, Hilltop Securities, Inc., with the goal of obtaining the best available execution and price. We make no markets in securities and receive no compensation for order flow. Hilltop routes equity and option orders to a diverse group of market centers and regularly monitors the quality of the executions received.
In Case of Business Disruption:
FINRA Rule 3510 requires each member firm to create and maintain detailed a business continuity plan. Accordingly, we have developed a plan to ensure that business continues to run with minimal interruption during times of emergency or systems failure. The following is a summary of that plan: Business Continuity Plan Summary
Customer Information Brochure:
Form ADV Part 2
Anti Money Laundering Procedures & Patriot Act Disclosures:
AML Program
Patriot Act Customer Identification
Reg BI Conflict Disclosure
Client Relationship Summary
Conflict Disclosure Summary
Potential Conflicts of Interest With Our Clients:
Where appropriate, Abraham & Co. representatives or investment adviser representatives may recommend to certain of the our brokerage customers and advisory clients, the securities of companies or entities that may be affiliated with management through common ownership. Historically these securities were issued through private placements in limited partnerships and some (equities) through publicly traded companies. While these recommendations have been made only to clients who’ve demonstrated specific suitability requirements, this may present a significant conflict-of-interest when advising brokerage customers or advisory clients. In some cases a Penny Stock Disclosure Statement & Agreement which can be found on the Client Resources page of this website is required before making purchases in certain speculative securities.
Website Disclaimer:
This web site is offered to you, the user, conditioned on your acceptance without modification of the terms, conditions and notices contained herein. Your use of this website constitutes your agreement to all such terms, conditions and notices. Abraham & Co. Inc. or ClearPath Financial and Insurance Solutions, LLC may at any time change or modify the terms and conditions applicable to your use of this website, or to any aspect or feature of the website itself. The information provided in this website is intended for your personal and non-commercial use. You may not modify, copy, distribute, transmit, display, perform, reproduce, publish, license, create derivative works from, transfer, or sell any information, products or services obtained from this website. Neither Abraham & Co, ClearPath Financial and Insurance Solutions, LLC, its affiliates, information providers nor content providers shall have any liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this website, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. You should always consult your authorized financial advisor or representative to establish actual stock prices before making any stock trades or other financial decisions. Abraham & Co., its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this website. The information available on this website is provided on an “as is” basis without warranties of any kind, either express or implied, including (but not limited to) warranties of merchantability or fitness for a particular purpose, title or non-infringement. In no event will Abraham & Co., its affiliates, information providers or content providers be liable to you or any third party for any direct, indirect, consequential, incidental, punitive or special damages (including but not limited to lost profits) arising out of or in any way connected with the use of this website, or with the delay or inability to use this Web site, or for any information, products or services obtained through this website, whether based in contract, tort, strict liability, or otherwise, even if Abraham & Co., and/or ClearPath Financial and Insurance Solutions, LLC, its affiliates, information providers and/or content providers has been advised of the possibilities of damages. Some states do not allow certain limitations on implied warranties, or the exclusion or limitation of incidental, consequential or other damages, so that these disclaimers and limitations may not apply to you. This information is intended for U.S. residents only.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.