Good Faith Violation (“GFV”)

Regal Securities through its clearing agent Penson Financial Services, Inc. is required to implement policies concerning trading with unsettled funds. Effective immediately, your account can be charged with a Good Faith Violation if you purchase a security in a cash account with unsettled funds. Three (3) GFVs in any twelve (12) month rolling period will result in your account being restricted to “Funds in Advance” of trading for a period of 90 days. If an account trades through a 90-day restriction, any resulting loss in the account will be the responsibility of the client and your account may be coded for "no more business."

Example:

• On Monday customer sells “A” for $5,000, of a long, settled and fully paid for position.
• On Monday customer buys “B” for $5,000.
• On Monday, Tuesday or Wednesday customer sells “B”, the sale would result in a good faith violation and a 90 day restriction in the account, requiring funds up front prior to new purchases if the call is not met.

For questions contact Regal at 1-800-92-REGAL.

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The information on this web site is for discussion and information purposes only. All accounts accepted at the discretion of Regal which accepts customer orders only on an unsolicited basis, and does not make any recommendations regarding any security or securities product with the possible exception of orders executed by our full service bond desk. Nothing contained herein should be considered as an offer to buy or sell any security or securities product. Systems response and account times may vary due to market conditions, system performance, and other factors.