Responsibilities of Moreton Capital Markets (“MCM”)

MCM is obligated to communicate its responsibilities as an Introducing broker-dealer to all new clients. 

Responsibilities of MCM

MCM has the responsibility to:

  • Approve the opening of your account

  • Obtain necessary documentation to help fight the funding of terrorism and money laundering activities

  • Service and supervise your account through its own personnel in accordance with its own policies, procedures, applicable laws, and regulators

  • Know you and your stated investment objectives

  • Provide appropriate investment advice, recommendations, or management services based on your investment objectives

  • Determine whether particular kinds of transactions such as margin, option, and short sale are appropriate for you

  • Obtain the initial margin as required by Regulation T if a margin account is opened for you

  • Accept and, in certain instances, execute securities orders

  • Know the facts about any orders for the purpose or sales of securities in your account

  • Comply with fair pricing and disclosure responsibilities (if your firm is a market maker in any securities or otherwise trades as principal with you)

  • Correctly identify and promptly forward funds or securities intended for your account to The Clearing Firms

  • Supervise the activities of any individual who services your account

  • Resolve any complaints regarding the handling of your account

  • Manage the ongoing relationship that it has with you

Our clearing firm, RBC Custody & Clearing (“RBC”) has no involvement and assumes no responsibility in all of the above matters relating to the servicing of your account.

Responsibilities of RBC

In general, the RBC is only responsible for the services within the scope of the Agreement between MCM and RBC ("Fully Disclosed Clearing Agreement") and contains specific direction regarding your account. As such, RBC may fulfill the following responsibilities on behalf of your account:

  • Create computer based account records

  • Process orders for the purchase, sale or transfer of securities (RBC is not obligated to accept orders directly from you and will do so only at its discretion in exceptional circumstances, for example during a significant business disruption impacting MCM)

  • Receive and deliver funds and securities

  • Record such receipts and deliveries according to information provided either by MCM or directly, in writing, by you

  • Hold securities and cash in custody (after it comes into RBC’s physical possession or control)

  • Collect and disburse dividends and interest

  • Process reorganization and voting instructions with respect to securities held in custody

  • Prepare and transmit confirmations of trades to you with the exception of the following transaction which will alternatively appear on account statements:

    • Transactions in money market funds that have no purchase or redemption fees

    • Dividend reinvestments

  • Prepare and transmit periodic account statements summarizing transactions

  • Provide MCM with written reports of all transactions processed for your account to enable MCM to carry out its responsibilities under the Fully Disclosed Clearing Agreement

  • Assist you and MCM with any discrepancies or errors that may occur in the processing of transactions

If at any time, MCM approves a Margin account for you, RBC may:

  • Loan you money for the purpose of purchasing or holding securities (subject to the terms of RBC’s margin agreement, margin policies and applicable margin regulations)

  • Calculate the amount of maintenance margin required and advise you of those requirements (usually through MCM)

  • Calculate any interest charged on your debit balance

RBC maintains the books and records required by law and business practice. The Fully Disclosed Clearing Agreement does not encompass transactions in investments other than marketable securities, which are normally processed on recognized exchanges, electronic market venues and over-the-counter ("OTC") markets. In furnishing its services under the Fully Disclosed Clearing Agreement, RBC may use and rely upon, the services of clearing agencies, automatic data processing vendors, proxy processing, transfer agents, securities pricing services and other similar organizations.

This document addresses the basic allocation of functions regarding the handling of your account. It is not meant as a definite enumeration of every possible circumstance, but only as a general disclosure.

RBC does not control, audit, or otherwise supervise the activities of MCM or its employees. RBC does not verify information provided by MCM in regards to your account or transactions processed for your account. RBC does not undertake responsibilities for reviewing the appropriateness of transactions entered by MCM on your behalf.