Business
Continuity Statement
On April 7, 2004, the
Securities and Exchange Commission approved NASD Rule 3510, which requires
member firms to create and maintain business continuity plans. A business
continuity plan is one that will enable the firm to continue its business in
the event of a significant business disruption (SBD) or, alternatively, conduct
an orderly wind-down of operations.
CP Capital Securities, Inc.
(CP Capital) is an NASD member firm and conducts business in general
securities, including mutual funds. CP Capital is committed to protecting its
staff and ensuring the continuity of critical business functions in order to
mitigate risk, safeguard revenues and sustain customer confidence. The
development, and implementation of a Business Continuity Plan (BCP) would
assist in achieving these objectives. CP Capital has developed a BCP that
addresses advance preparations and actions to be taken in response to
disruptions of various magnitude.
The BCP, which is a
supplement to National Financial's BCP, has been developed to:
- Provide an organized approach to
managing response and recovery activities following an unplanned incident or
business interruption.
- Provide prompt and appropriate
responses to any unplanned incident, thereby reducing the effects resulting
from short term business interruptions.
- Recover essential business operations
in a timely manner and increase the ability of the firm to recover from a
damaging loss to the firm's facilities.
The BCP recognizes the
potential impact of varying levels of disruptions on CP Capital's employees,
equipment, computer and telecommunications systems, and office facilities.
While it is impossible to anticipate every type of business disruption that
could effect CP Capital's business, the incidents that the BCP covers include
but are not limited to, the following:
- Any incident causing physical damage
such as terrorist attacks, fire, smoke or water.
- Any incident which indirectly affects
employee access to CP Capital's facility such as closure due to storm, and
emergency building evacuation due to a threat, or external threat such as fire
to a nearby facility, gas leaks or explosions, power outages, suspicious mail,
bomb threats.
- Impending or unexpected disaster such
as hurricane, tornado, rainstorm or wild fires.
- Any external incident, which
potentially could cause a business interruption, such as loss of electrical or
telecommunication services, IT disruptions, or Cyber threats.
- Transportation related such as local
traffic events or street closures, public transportation accidents or strikes,
hazardous material spills, or interruptions in mail services.
For all SBDs described above,
the BCP in place will permit CP Capital to remain operational and to service
its customers. The duration of the disruption will depend on the nature and
extend of the SBD. In the event that an SBD, where it is not possible to
conduct business from CP Capital's Miami office, the firm will conduct
operation from an alternative site with sufficient resources to support
critical operations. Telephone services would be rerouted to, and contact with
the Clearing firm would be maintained from this site. The firm will restore
critical business functionality at the alternate site no later than 48 hours of
declaration of an SBD. Certain employees have been designated to work from home
during periods of major disruptions.
Please note that CP Capital's
BCP will be reviewed as necessary, and at least annually to ensure the Plan
accounts for technology, business and regulatory changes, operations, structure
or location.
Privacy
Policy Statement
At CP Capital Securities, we
recognize that privacy is a very sensitive and important matter. We are
providing the following information regarding our information practices to you
as required by federal law and regulation.
Where we get your
information.
The non-public personal
information that we collect about you comes primarily from the following
sources:
- Information we receive from you on
applications or other forms;
- Information about your transactions
with us or others; and
- Information we receive from a
consumer-reporting agency.
To whom we disclose the
information.
- We provide information about our
current or former customers from the sources described above to our clearing
firm, National Financial. This is necessary in order to transact your business.
The information transmitted will only be used for the purpose for which it was
provided.
- As required or authorized by law or
regulation. Examples include responses to a subpoena, court order or regulatory
demand.
- As authorized by you.
If you decide to close your
account(s) or become an inactive customer, we will adhere to the privacy
policies and practices as described in this notice.
CP Capital Securities
restricts access to your personal and account information to those employees
who need to know that information to provide products or services to you. CP
Capital Securities maintains physical, electronic, and procedural safeguards to
guard your nonpublic personal information. We continually review our policies
and practices to ensure the safety of our customer information.
Investor
Protection
At CP Capital Securities your
investments are protected by the Securities Investor Protection Corporation
(SIPC) that provides coverage when a broker becomes insolvent. SIPC covers a
maximum of $500,000 per account with $100,000 available to cover cash waiting
reinvestment in your account. Additional coverage is provided by Customer Asset
Protection Company (CAPCO). This additional insurance covers your total account
net equity in excess of the $500,000/$100,000 provided by SIPC.*
*Neither SIPC, CAPCO,
CP Capital Securities, nor National Financial Services can offer protection
against declines in account value based on market fluctuations.
Anti-Money
Laundering Disclaimer
USA Patriot Act
Signed by President Bush in
2001, The Patriot Act is intended to strengthen U.S. measures to prevent,
detect, and prosecute international money laundering and the financing of
terrorism. The Act imposes several anti-money laundering (AML) obligations on
brokerage firms as well as other financial institutions. Section 352 of the USA
PATRIOT ACT amended the BSA to require financial institutions, including
broker-dealers, to establish programs that include, but are not limited to AML
compliance programs; customer identification programs; monitoring, detecting,
and filing reports of suspicious activity; due diligence on foreign
correspondent accounts.
In an effort to assist our
clients' understanding of these efforts, CP Capital provides the following
information concerning money laundering as well as some of the activities and
programs the firm has implemented to not only comply with the USA Patriot Act,
but more importantly, to ensure that inappropriate access is not gained to the
US financial system.
What is Money
Laundering?
Money laundering is the process of, or acts involving,
disguising illegally obtained money so that the funds appear to come from
legitimate sources or activities. Essentially, it involves the transfer of
monies that are a product of criminal activity.
What is CP Capital Required to
Do to Eliminate Money Laundering?
In accordance with the USA Patriot
Act, CP Capital is required to maintain a well structured AML policy in writing
which includes the following primary components:
- the development of internal policies,
procedures, and controls;
- the designation of a compliance
officer;
- an ongoing employee training program;
and
- an independent audit function to test
programs.
CP Capital is very proactive
in the legal and regulatory environment in which our firm operates.
Accordingly, the firm has implemented a comprehensive AML program which
includes policies that have been vetted by financial compliance professionals.
As required by our AML Program, CP Capital will ask its clients to provide
necessary identification documentation as outlined by the policies and
procedures established by the firm. CP Capital will not be able to open
accounts for prospective clients or initiate specific transactions unless
required documents are submitted and identities appropriately verified.
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