Important Disclosures
Overview
Securities Investments
Financial Condition
Securities Investor Protection
BreakPoint Information
Privacy Policy
Business Continuity
529 Plans
Order Routing
Best Execution
Revenue Sharing/Compensation
Securities Investments  top
Are not deposits and are not FDIC insured;
- Are not insured by any federal government agency;
- Are not guaranteed by any bank or credit union or by Morgan Peabody Inc.;
- May fluctuate and/or decline in value; and
- May be illiquid in certain circumstances, which means that they cannot be readily sold.
Financial Condition top
Pursuant to FINRA Rule 2270, any customer of Morgan Peabody Inc. may request
information with regards to Morgan Peabody's financial condition. This request can be made by emailing
Customer Service
Securities Protection Corporation (SIPC) top
Morgan Peabody, Inc. is a FINRA Registered broker-dealer. Morgan Peabody is a member of the Securities Investor Protection
Corporation (SIPC). The protection of SIPC is in the event your securities are lost or stolen, but does not protect against any
loss in the value of your securities due to market action. For more information on SIPC, please see the website
www.sipc.org
Breakpoints are the amounts at which a mutual fund that has a front-end sales charge may offer a discount for a larger investment.
It is important to be aware that some mutual funds that have front-end sales charges may offer discounts for larger investments.
The discount is called a "breakpoint".
In order to research eligibility for a breakpoint discount, FINRA has created the Mutual Fund Breakpoint Search Tool. This tool
allows you to look up breakpoint schedules and linkage rules for mutual funds with sales charges to ensure discounts are given
where applicable.
Note: Mutual fund companies are not required to offer breakpoint discounts on front-end load funds.
The Breakpoint Search Tool was created in response to recommendations made by the Joint FINRA/Industry Task Force on Breakpoints.
It pulls information from a database created and provided by National Securities Clearing Corporation (NSCC), a subsidiary of The
Depository Trust & Clearing Corporation (DTCC).
The Mutual Fund Breakpoint Search tool may be found at
http://tools1.finra.org/nbst/ and the Mutual Fund and EFT Expense Analyzer at
http://apps.finra.org/investor_Information/ea/1/mfetf.aspx
For additional information regarding breakpoints, visit FINRA's Investor Information website at
http://www.finra.org/InvestorInformation/index.htm
You may also find a mutual fund's breakpoint schedule and the conditions through which the discounts are available in a fund's
prospectus or "Statement of Additional Information." Typically, you will find this information in the "sales charges" section of
these documents. You can obtain these documents by: calling your broker or financial advisor; calling or writing the mutual fund company.
Privacy Policy top
Your privacy and information is important to us. We at Morgan Peabody restrict access to nonpublic, personal information about you to those employees
and agents who need to know that information to provide products and services to you. We maintain physical, electronic and procedure
safeguards to protect your nonpublic, personal information. We do not disclose any nonpublic, personal information about our customers
or former customer to anyone, except as permitted by law.
Information that We Disclose and to Whom
We do not disclose any nonpublic, personal information about our customers or former customer to anyone, except as permitted by law.
We collect nonpublic, personal information about you from the following sources:
1. Information we receive from you on applications or other forms,
2. Information about your transactions with us, our affiliates, or others; and
3. Information we receive from a consumer reporting agency.
Business Continuity top
Morgan Peabody, Inc. (“Morgan Peabody”) understands the importance of ensuring our customers have continued access to their funds
and securities in the event our office operations are impacted as a result of a disaster. We have developed and
maintain a business continuity plan that describes the means by which Morgan Peabody will respond to significant business
disruptions of varying degrees of severity. Our business continuity plan is reviewed, tested and updated throughout the year.
You may obtain the most current version of this summary by sending a request to Morgan Peabody at 15303 Ventura Blvd., Bldg C Suite 1600 Sherman Oaks, CA 91403.
An updated summary will be sent to you.
529 Plans top
Section 529 College Savings Plans are named after IRS code Section 529(b). 529 plans were developed to help save for college and other
post education programs. 529 plans include interest in pooled investment funds under trust by state or local government entities.
529 plans allows one to save for higher education at a tax advantaged basis. Information regarding a 529 plan,
including a description of fees and expenses, can be found on the plans website, by
requesting an offering circular from the plan sponsor or your financial consultant, or by linking to The National Association of State
Treasurers' College Savings Plan Network Web site.
While 529 plans offer a tax-advantage, you should also consider that certain states offer tax benefits and fee savings to in-state residents.
For information on whether a state tax deduction and/or application fee savings applies to you, consult your financial consultant or tax
advisor.
For more information regarding 529 plans see FINRA's Investors Information site at
http://www.finra.org/InvestorInformation/index.htm
Order Routing top
The US. Securities and Exchange Commission Act Rule 606 requires broker-dealers to make public quarterly reports containing certain
information on their order routing practices. To help clients obtain information on order of nondirected orders in equity and option
securities through our clearing relationship with National Financial, Morgan Peabody Inc., offers the following attachment.
Best Execution top
The SEC's customer disclosure rule, SEC Rule 605, requires exchange market makers, specialists, OTC market makers, national security
exchanges, national securities associations or alternative trading systems to disclose monthly data about the quality of their trade
executions. For information regarding trade execution through our clearing firm, National Financial, please click the following link:
http://www.nationalfinancial.com/legal/trade_exe.html
Revenue Sharing/Compensation top
Direct Participation Programs Real Estate Investment Trusts and Mutual Funds
Subject to regulatory requirements limiting compensation, direct participation programs,
non-traded real estate investment trusts and Mutual Fund companies may pay Morgan Peabody a marketing allowance.
Clearing Relationship
National Financial Securities Corp is the clearing firm for Morgan Peabody’s brokerage business. As a part of this business
relationship, National Financial shares a portion of the commission and fees you pay with Morgan Peabody. Morgan Peabody may
also participate in other revenue sharing on assets held in your account.
Seminars
From time to time, Morgan Peabody representatives may hold seminars. As part of the seminar and
subject to regulatory requirements limiting compensation, a sponsor, such as a mutual fund
company or real estate investment trust company, may pay in full or part of the seminar.
The sponsor payment is made through a reimbursement of costs to Morgan Peabody, who, in turn,
will reimburse the representative.
Transaction-Based Compensation
When you purchase an investment, you may pay a sales charge. This sales charge is paid at the time of purchase or the sales charge
is built into the expense of the product and/or charged to you when you sell your investment. A portion of the payment goes to
your financial consultant. Your sales charge, expenses and/or commissions are different from product to product and investment to
investment and may depend on the amount of money you invest.
In addition, Morgan Peabody may receive continuing compensation service fees, trailing commissions or trails. Morgan Peabody may
retain a portion of these fees and/or pass all of the fees on to your financial consultant. You do not pay these fees directly.
They are deducted from the total assets in the fund and therefore may reduce investment returns. The amount of trail commissions
is set by the mutual fund company and is typically set forth in the mutual fund prospectus and/or SAI.
Margin Disclosure
It is important to be aware of the basic facts about purchasing securities on margin, and to alert you to the risks involved with
trading securities in a margin account. Before trading stocks in a margin account, you should carefully review the margin agreement.
Consult your representative/firm regarding any questions or concerns you may have with 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 choose to borrow funds 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 Morgan Peabody or its clearing firm can take action, such as issue a margin call and/or sell securities or other assets
in any of your accounts held with us, 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
- The firm can force the sale of securities or other assets in your account(s).
- The firm can sell your securities or other assets without contacting you.
- You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call.
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The firm can increase its ‘‘house’’ maintenance margin requirements at any time and is not required to provide you advance
written notice.
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You are not entitled to an extension of time on a margin call. Note: While an extension of time to meet margin requirements
may be available to customers under certain conditions, a customer does not have a right to the extension.
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