Please read the information below carefully before investing with UnionBanc Investment Services, the brokerage and investment advisory subsidiary of MUFG Union Bank, N.A.
UnionBanc Investment Services is a member of SIPC (Securities Investor Protection Corporation) which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Customers may obtain information about SIPC, including the explanatory brochure, by accessing the SIPC website at www.sipc.org or upon request by telephone at 1-202-371-8300.
Brokerage or Advisor Account - Which is the best fit for you?
If you’ve been wondering whether a brokerage or an investment advisory account is the best choice for you, this piece should be helpful in making that determination. If you still have questions, please contact your Financial Advisor or call Client Services at 1-800-634-1100.
Qualified Plan Rollovers - Factors to Consider
If you have terminated your employment and have savings invested in an employer-sponsored retirement plan, such as a 401(k) plan or 403(b) plan, you may be eligible to roll those assets into an Individual Retirement Account (“IRA”) without paying taxes on the distribution. However, a rollover into an IRA is not your only option. This fact sheet can assist you in making the right choice for your individual needs. If you still have questions, please contact your Financial Advisor or call Client Services at 1-800-634-1100.
Money Market Funds
For those investments allocated to a money market fund, it is fundamental policy to use every effort to maintain a stable net asset value of $1.00. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. Please obtain a prospectus and read it carefully before you invest.
UBIS provides access to a wide number of mutual funds on its brokerage platform. There is no guarantee that the Funds will meet their stated objectives. Mutual fund investments are NOT insured by the FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any Bank affiliate, and MAY lose value, including possible loss of principal. Mutual fund investing involves risk, including possible loss of principal. Carefully consider a mutual fund’s investment objectives, risk, and charges and expenses before investing. This and other information can be found in the fund’s prospectus, which may be obtained from a UnionBanc Investment Services Financial Advisor or by calling 1-800-634-1100. Please be sure to read the prospectus carefully before investing.
Customer Access and System Response Time
System response and account access times may vary due to a variety of factors, including trading volumes, market conditions, system performance, and other factors. UnionBanc Investment Services and/or our clearing firm, National Financial Services, LLC (NFS), have an ongoing commitment to provide the highest level of service and technology to enable you to access your account, obtain market information, and enter your orders quickly, easily, and efficiently. However, during periods of extraordinary volatility and volume, customers using online or automated trading services may experience delays in accessing their account due to high Internet traffic or systems capacity limitations. Similarly, customers may experience delays in reaching telephone representatives. Please be aware that market conditions, including stock and bond prices, may change during these periods. Multiple channels are available through which you may place orders or access information, including the Web, and client services representatives, so you have alternative ways to do business. For more information on trading in fast-changing markets, contact your Financial Advisor.
The market data on Wealthscape Investor is prepared by independent information providers that are not affiliated with UnionBanc Investment Services. Neither UnionBanc Investment Services nor the information providers guarantee that the information supplied is accurate, complete, or timely. These materials are provided for informational purposes only and should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation of any security.
Trading in Fast-changing Markets
As today's investors know, the U.S. securities markets experience periods of extraordinary trading volumes and price volatility. While these conditions affect most segments of the markets, they can be especially acute in certain securities, such as Internet-related stocks and initial public offerings (IPOs). In addition, investors in rapidly increasing numbers are taking advantage of technological developments that enable them to obtain market information and personal account information and to initiate securities transactions through electronic channels such as the Internet, telephone, personal computer, and two-way paging devices. In light of these factors, it is essential for investors to understand what they are buying, the environment in which transactions take place, and the level of associated risk involved.
Potential Delays in Order Execution and Reporting
UnionBanc Investment Services routes its order flow through our clearing firm, National Financial Services, who transmits your orders for execution to various exchanges or market centers, based on a number of factors. These factors include: size of order, trading characteristics of the security, favorable execution prices (including opportunity for price improvement), access to reliable market data, availability of efficient automated transaction processing, and reduced execution costs through price concessions from the market centers. Market makers generally have their own procedures for handling orders (consistent with industry rules). In periods of heavy trading and price volatility, market makers may alter their procedures on individual stocks or groups of stocks. For example, they may execute orders manually rather than electronically or reduce the order size for which they guarantee execution. Changes in trading procedures and other circumstances may result in queues and backlogs of orders, both intraday and at the market opening, and corresponding delays in executions in the over-the-counter (OTC) and listed markets. In such cases, the execution price of a market order may be significantly higher or lower than the market price quoted or displayed at the time you entered your order. During such heavy trading periods, the quotes displayed on your computer screen as "real time" may not reflect the current trading price of the security. These conditions may also delay the transmission of order execution reports.
When you place a market order, UnionBanc Investment Services routes its order flow through our clearing firm, National Financial Services, who will transmit the order to a market center for full and prompt execution without regard to price. Therefore, in a volatile market, a market order may receive an execution price significantly different from the price of that security quoted when the order was entered. Furthermore, if you place a market order when the markets are closed (e.g., nights, weekends, or holidays), your order will be executed at the prevailing price when the market next opens. There can be substantial changes between the most recent closing price of a security and the next opening or available price. If you have limited assets to allocate to a transaction, you should consider placing a limit order, whether during the trading day or after hours. For example, your ability to make additional contributions to your retirement account is subject to certain requirements. Therefore, transactions in retirement accounts are generally limited to the assets available in the account. If your transaction price exceeds your available account balance and you cannot otherwise pay for the transaction, UnionBanc Investment Services and/or our clearing firm will be required to liquidate all or a portion of the transaction or other account assets to the extent necessary to satisfy your financial obligation. Any losses or costs of such liquidation will be your responsibility.
Since market orders are executed as promptly as possible, it is generally not feasible to cancel a market order even if you have not received an execution report. Your request to attempt to cancel a market order will be handled on a best-efforts basis. Although you may receive an electronic notice or verbal confirmation that we have received your request for the attempted cancellation, do not assume that it means that the trade was canceled. UnionBanc Investment Services and/or our clearing firm are not responsible in cases where a replacement order is placed and executed prior to your receiving confirmation of the cancellation of a prior order. In addition, due to the queuing of orders, if a market order is entered near the close of trading, it may not be eligible to receive an execution. There may be additional fees for limit and stop orders.
A limit order will be executed only at a specific price or better. With a limit order to buy, the stock is eligible to be purchased at or below your limit price, but never above it. Similarly, with a limit order to sell, the stock is eligible to be sold at or above your limit price, but never below it. By placing a limit order instead of a market order, you protect yourself from buying the stock at a price higher or selling at a price lower than you had expected. However, in volatile markets, although your limit order receives price protection, due to priority of other orders, your order may not be executed even if the security is trading at your limit or better after your order is entered. Similarly, the security price may move away from your limit after your order is entered, in which case your order will not be executed. There may be additional fees for limit and stop orders.
Stop orders are available on certain securities to buy or sell after a stock has reached a certain specified price. A buy-stop order is placed above the current market price and automatically becomes a market order to buy when the "stop" price is reached. A sell-stop order is placed below the current market price and automatically becomes a market order to sell when the "stop" price is reached. As with any market order in volatile markets, the market order triggered at the stop price may receive an execution price significantly different from the quoted price of that security when the order is triggered. Market makers' procedures vary with respect to the handling of stop orders that have already hit the stop price. In addition, some market makers may not be willing to accept stop orders under certain market conditions, and this practice varies among market makers. When this occurs, UnionBanc Investment Services and/or our clearing firm may not accept certain stop orders. There may be additional fees for limit and stop orders.
IPO Securities Trading in the Secondary Market
Due to the extreme volatility sometimes associated with trading an IPO in the secondary market (particularly one that is trading at a price much higher than the initial offering price), a customer who places a market order for such a security is at risk of receiving an execution price that is substantially different from the market price at the time the order was placed. As discussed above, this risk can be reduced by appropriate use of limit orders. The placement of a limit order in such situations would address the risk of receiving an execution that is substantially away from the market price that was quoted at the time the order was placed. However, as with any limit order in a volatile market, due to order imbalances and fast markets, a limit order may not receive an execution, even if the security is trading at your limit or better after your order was entered.
Important Information About Using Margin
Before trading securities in a margin account, you should understand some basic information about purchasing securities on margin and the risks involved with trading securities in a margin account. The following important information is helpful in understanding such risks, but you should also carefully review the margin terms in your account application and agreement. Please contact UnionBanc Investment Services regarding any questions or concerns you may have with your margin account.
When you purchase securities, you may pay for the securities in full or you may borrow all or part of the purchase price utilizing a margin account from our clearing firm, National Financial Services, LLC (“NFS”). If you choose to borrow funds from NFS, you will need to open a margin account with NFS through UnionBanc Investment Services. The securities in your accounts are NFS' 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, NFS and UnionBanc Investment Services can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held with NFS through UnionBanc Investment Services, in order to maintain the required equity in the account. NFS may also take action to sell securities or other assets in your accounts held with NFS and with certain NFS affiliates.
It is important that you fully understand the risks involved in trading securities on margin. These risks include the following:
Margin credit extended by National Financial Services LLC, member NYSE, SIPC.
Margin Requirements and Calls
Please note that margin requirements may be raised during periods of market volatility. Factors considered in raising the margin requirement for a particular stock include: price fluctuations, market capitalization, and volatility. Increasing the amount of equity that must be maintained in margin accounts protects you, UnionBanc Investment Services, and NFS, our clearing firm, in the event of a significant change in the value of the stock by decreasing the chance your account positions will be liquidated to meet a margin call. Some volatile securities may also be designated "not marginable" (100 percent of initial margin is required within three days of settlement) or "cash on hand" (100 percent of the purchase price must be in the account prior to execution of the trade).
Unsolicited Trade Disclosure
UBIS periodically accepts unsolicited purchases, sales or transfers in of equities, mutual funds, securities and other financial instruments. An unsolicited order will be identified as such on the confirmation provided by UBIS. The customer accepts full responsibility for ensuring such transactions are appropriate for their account given their financial situation and investment experience and objectives.
Transactions in Foreign Exchanges
UBIS will only execute individual equity transactions for equities on U.S. exchanges or electronic stock markets. UBIS prohibits transactions for individual equities on Foreign Exchanges (i.e. Global Depository Receipts, etc.).
Quarterly SEC Rule 606 (Best Execution) Report
Under the U.S. Securities and Exchange Commission’s (SEC) Rule 606, broker-dealers are required to disclose statistical reports with specific information about their order routing practices for non-directed orders in NMS stocks and option contracts in NMS securities on a quarterly basis and make these available on a free public website. UnionBanc Investment Services (“UBIS”) routes its order flow through our clearing firm, National Financial Services (NFS). NFS conducts regular and rigorous reviews of trading activity for the purpose of determining best execution. UBIS does not receive payment for order flow. Furthermore, UBIS does not have any material relationships with any of the venues identified within the reports.
Through UBIS’ Client Services, our customers can request details of NMS stock and option non-directed orders in NMS securities to obtain the identity of the market centers to which their orders were routed for execution up to six months prior to their request, and the time of the transactions (for example, order execution time), resulting from such orders, if any. If you would like to request a report, please contact UBIS Client Services at 800-634-1100.
UnionBanc Investment Services' Statement of Financial Condition
UnionBanc Investment Services LLC, a subsidiary of MUFG Union Bank N.A., has published its recent Statement of Financial Condition. Access information about MUFG Americas Holding Corporation, the parent bank holding company of MUFG Union Bank, N.A. This statement of financial condition is provided in accordance with Rule 17a-5 of the Securities Exchange Act of 1934 and is updated here annually.
Business Continuity Program
Click the following link for a copy of UnionBanc Investment Services' UnionBanc Investment Services Commission & Fee Schedule, Disclosures, and Services Agreements, which includes a copy of our Business Continuity Program. Alternatively, customers may request that UnionBanc Investment Services mail them a written copy by contacting 1-800-634-1100.
Payment by Product Sponsor Disclosure
Payment by Product Sponsor Disclosure UnionBanc Investment Services LLC and its Investment Representatives are compensated in different ways when you purchase or sell a mutual fund or an annuity contract, depending on the type of investment involved, amount invested, and share class purchased. This Disclosure describes certain compensation arrangements.
As of October 1, 2019, UnionBanc Investment Services includes the following mutual fund, unit investment trust (UIT), annuity, and life insurance sponsors on their product list (product sponsors):
AIG, American Funds, Banner, BlackRock, BNP, Brighthouse Financial, Covr, Crump, Equitable, Federated, Fidelity Advisors, First Trust, Franklin, Great American, Global Atlantic, Hartford, Highland Capital, HSBC, Invesco, Jackson National, John Hancock, JP Morgan, Lincoln Financial, Mainstay, MFS, Nationwide, New York Life, One America, Pacific Life, Paychex, PIMCO, Principal, Protective Life, Prudential, Putnam, Symetra, Transamerica, Wells Fargo, Western & Southern.
A. Customer Relationship Summary (Form CRS)
B. UnionBanc Investment Services® Commission & Fee Schedule
C. Investment Services Agreement
D. Portfolio Connection® Account & Services Disclosure and Supplemental Agreement
E. Bank Deposit Sweep Program (BDSP℠) Disclosure Document
F. UnionBanc Investment Services Business Continuity Plan Disclosure
G. Brokerage or Advisory Account: Which is the best fit for you?
H. Guide to Brokerage Services
Brokerage and investment advisory services offered by UnionBanc Investment Services LLC, an SEC-registered broker-dealer, investment adviser, member FINRA / SIPC, and subsidiary of MUFG Union Bank, N.A. Insurance services offered by UnionBanc Insurance Services, a division of MUFG Union Bank, N.A., having a California domicile and principal place of business at 1201 Camino Del Mar, Suite 208, Del Mar, CA 92014. California State Insurance License No. 0817733. Non-deposit investment and insurance products: • Are NOT deposits or other obligations of, or guaranteed by, the Bank or any Bank affiliate • Are NOT insured by the FDIC or by any other federal government agency • Are subject to investment risks, including possible loss of the principal amount invested • Insurance and annuities are products of the insurance carriers.