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A.
Securities markets are highly regulated. Whenever money and securities are exchanged, regulatory bodies, such as the Securities and Exchange Commission, require that every aspect of the transaction be documented and verified. The process of completing and documenting the trade is known as execution and clearance.
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How are clearing functions different from brokerage activities?
A.
RBC Correspondent Services (“RBC CS”), handles the processing of your transactions. They do not provide investment advice, nor do they execute any order received directly from you. Neither are they responsible for determining the suitability of investment recommendations made by your Garden State Securities Financial Consultant. Your Financial Consultant is responsible for initiating transactions and investigating and resolving any inquiries you may have about your account.
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Is RBC CS an established firm?
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RBC CS is a division of RBC Capital Markets, LLC (“RBC CM”). RBC Capital Markets, LLC is one of the largest securities firms in the nation and is a member of the NYSE, AMEX, CHX, CBOE and PSE, and has execution capabilities on all principal exchanges. RBC CM is owned by Royal Bank of Canada, which trades under the symbol RY on the New York Stock Exchange.Operating since 1869, Royal Bank of Canada has more than $770 billion in assets and one of the highest credit ratings of any financial institution- Moody’s Aa1 and Standard and Poor’s AA-. By market capitalization, RBC is among the top 20 banks globally and is the 6th largest in North America.
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How long has RBC CS been providing these services?
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RBC Correspondent Services (RBC CS) has been servicing broker/dealer firms since 1979. They service over 150 brokerage firms nationally and internationally. Their experienced staff is well versed in the needs of our financial consultants and their clients. With RBC CS, you have a highly responsive support staff working to meet your needs of our customers promptly.
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How will I be interacting with RBC CS?
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RBC CS operates efficiently in a capacity that is almost totally behind the scenes. You will seldom, if ever, have any direct contact with them.
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Does RBC CS keep me informed of activity in my account?
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Although you do not directly place transactions and inquiries through RBC CS, a confirmation is generated for every securities transaction in your account. You will also receive statements of your account in a clear, easy-to-read format. For further information about your statement, please contact your Garden State Securities Financial Consultant.
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What other services does RBC CS provide?
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Through RBC Capital Markets, LLC, RBC CS provides execution capabilities on the New York Stock Exchange and all other major exchanges. They also offer an Over-the-Counter Trading Department and a Fixed-Income Trading Department specializing in government, corporate and municipal bonds; certificates of deposit (CDs); and collateralized mortgage obligations (CMOs).
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Does RBC CS provide features that benefit me directly?
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RBC CS have a variety of products.
Investment Access® features unlimited check writing, a VISA Gold® rewards card and a credit reserve that will loan you up to 50% of the value of marginable securities in your account
1. Their fee based products enable our clients to pay a simple fee based on the value of their account, rather than a commission for each transaction, while affording them access to top money managers or choices from more than 2,000 load and no-load mutual funds at net asset value. A host of retirement plans are available to fit our customers needs, view account information and market news 24-hours a day at
www.investor-connect.com. No matter what products you choose, you’ll receive a combined statement from RBC CS and a consolidated 1099 at the end of the year. Your Financial Consultant can provide you with more information about specific products and services RBC CS offers, along with a Tamarack™ Money Market Fund prospectus.
1. Purchasing securities on margin may not be suitable for all investors. 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 to issue a margin call and/or sell securities or other assets in any of your accounts held with the member, in order to maintain the required equity in the account. Before you sign a Margin Agreement, it is important that you read and fully understand the Margin Disclosure Statement, which describes additional risks involved in trading securities on margin.