ccorrespondents.corclearing.com/private/training/manual/03newaccts.pdfprocedures to be followed when...

CHAPTER 3

OPENING NEW ACCOUNTS

Chapter Index:

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General Information ----------------------------------------------------------------------------------------------- 2

Account Documentation ------------------------------------------------------------------------------------------ 3

Opening DVP Accounts ------------------------------------------------------------------------------------------- 4

Opening TOD Accounts ------------------------------------------------------------------------------------------- 5-6

Exhibit A : Standard Formats for Account Titles ----------------------------------------------------------------- 7-10

Opening New Accounts - Add/Update - Retail Account --------------------------------------------------------- 11-33

Opening New Accounts - Add/Update - Retail Account Procedures ------------------------------------------- 34-40

Opening New Accounts - Add/Update - Special Foreign Account Procedures -------------------------------- 41-50

Opening New Accounts - Add/Update - IRA Account ---------------------------------------------------------- 51-75

Opening New Accounts - Exhibit B Account Category Codes ---------------- --------------------------------- 76

Opening New Accounts - Add/Update Contact Tab ------------------------------------------------------------ 77-78

Opening New Accounts - Add/Update Account Tab ----------------------------------------------------------- 79-81

Opening New Accounts - Add/Update Financial Tab----------------------------------------------------------- 82-84

Opening New Accounts - Add/Update Details Tab ------------------------------------------------------------- 85-88

Opening New Accounts - Add/Update Special Handling Tab ------------------------------------------------- 89-90

Opening New Accounts - Add/Update Documents Tab --------------------------------------------------------- 91-92

Opening New Accounts - Add/Updated - Relationships Tab -------------------------------------------------- 93

Opening New Accounts - Add/Update Associated People Tab ------------------------------------------------- 94-97

Opening New Accounts - BORA Back Office Function --------------------------------------------------------- 98-103

Opening New Accounts - DAML Back Office Function -------------------------------------------------------- 104-107

Opening New Accounts - DOCA Back Office Function -------------------------------------------------------- 108-109

Opening New Accounts - BACT Back Office Function --------------------------------------------------------- 110-115

Opening New Accounts - SHIP Function ------------------------------------------------------------------------ 116-117

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OPENING NEW ACCOUNTS – GENERAL INFORMATION

GENERAL INFORMATION

The New Account Department at COR Clearing monitors new securities accounts opened at the firm, along with processing some data change requests and monitoring those changes made by the firms. Outlined below are basic procedures to be followed when opening a securities account.

If you have any questions, contact the COR New Account Department at (402) 384-2052 or email [email protected]

PROCEDURE

The following steps should be taken to open a new securities account:

1. The New Account Application Form should be completed in accordance with your firm’s compliancerequirements.

2. Using the New Account Form & Exhibit A - Standard Formats For Account Titles as a reference, the ThomsonOne Add/Update Add New Account section should be accessed and appropriate information entered. AdditionalBETA/Network Gateway screens are mandatory and will be required for certain types of accounts.

3. After the new account data has been entered and accepted, the permanent account number will be displayed on theterminal.

4. COR Clearing New Accounts Department will examine all new accounts. Account registrations, supportingaccount documentation, and all required fields will be reviewed. COR will contact your firm if additionalinformation or documents are required.

5. The Account Executive (Rep) should be advised of the permanent account number to include with his/her records.

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mailto:[email protected]

OPENING NEW ACCOUNTS – ACCOUNT DOCUMENTATION

ACCOUNT DOCUMENTATION

All documentation should be obtained in accordance with your firm’s requirements. It is the responsibility of your own Compliance Department to design, obtain, and maintain new account documentation (e.g. option suitability form and agreement, joint agreement, etc.).

COR Clearing will require that ALL documentation be submitted to the appropriate department for verification. Please see Exhibit B for account types and required documents.

Please send to [email protected] the following items:

It is your firm’s responsibility to obtain any required forms; COR Clearing does reserve the right to take the following actions if the documents are not received by your firm and coded in DOCA.

• Regulator withholding (as defined by the IRS and applicable state laws) will be deducted from the account if a signedW-9/W-8 Certification (Tax ID and status verification) has not been received.

• An account may be restricted to “liquidating orders only” if the firm fails to record new account documents received within30 calendar days of opening the account.

• The Forms Required Report (P321810DxxA) is provided to all firms via the sFTP site on a weekly basis(in the Saturday folder). This report should be used to track any missing documents.

• Retail Applications and supporting new account documentation as needed

• TOD (Transfer on Death) Agreements

• Margin Agreements

Please send to [email protected] the following items:

• IRA Application and appropriate IRA adoption agreement

• QRP Disclosure

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OPENING NEW ACCOUNTS – OPENING DVP ACCOUNTS

EMAIL INSTRUCTIONS FOR OPENING DELIVERY VS. PAYMENT ACCOUNTS

The following steps should be taken to open a DVP Account (Institutional), often called a "5B" account due to the standing instruction codes assigned.

New Account information should be emailed to the COR New Account Department at [email protected]. Please use the institutional account application that can be found on the COR website under the Forms tab, and include the following information:

Account Name Address, City, State and ZIP REP # SS# or TIN # Signature of Principal from your firm

DTC INSTRUCTIONS: ____________________________ DTC# ____________________________ AGENT # ____________________________ INST. I. D. # ____________________________ CCA (AGENT BANK INTERNAL #) ____________________________ CONTACT/PHONE #

FED WIRE INSTRUCTIONS (U. S. GOV'T ISSUES): ______________________________ ABA # ______________________________ N/O INSTITUTION ______________________________ ATTN: ______________________________ CITY AND STATE

PHYSICAL INSTRUCTIONS: ______________________________ NAME OF INSTITUTION ______________________________ ATTN: ______________________________ STREET ADDRESS ______________________________ CITY, STATE, ZIP CODE

The ICON and SPHD Functions may be checked to verify that the DVP and ID confirm instructions have been set up properly in the system. Detailed information on the ICON and SPHD Functions is located in Chapter 13.

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OPENING NEW ACCOUNTS –OPENING TOD ACCOUNTS

OPENING TRANSFER ON DEATH ACCOUNTS

Procedures for Registration of Account in Beneficiary Form Transfer On Death (TOD) Direction

Transfer on Death (TOD) registration enables a client to designate an individual(s) or entity that will automatically become the owner of eligible assets in the account on the death of the client. The ownership of the eligible assets passes to the designated beneficiary(ies) outside of probate. During the lifetime of the account owner(s), no beneficiary named by the owner(s) has any rights with respect to the account or any assets in the account.

Eligible for TOD

Only accounts registered in the name of a natural person or jointly by more than one natural persons with right of survivorship (“JT TEN" or “JTWROS”) are eligible for TOD registration.

Not Eligible for TOD

Accounts not eligible for TOD registration are accounts registered in the names of non-natural entities, such as trusts, corporations, custodians, partnerships or others, as well as natural persons as tenants in common, “TEN COM.” (TOD registrations are not permitted on foreign accounts and for residents of Texas and Louisiana. Texas and Louisiana do not recognize TOD registrations and cannot be added to accounts in those states.)

Eligible Securities

“Street name” securities are the only assets that can be considered to be distributed to beneficiaries pursuant to TOD

registration. This includes networked Level “3” Mutual Funds.

Non-Eligible Securities

The following securities are not subject to TOD registration, even if those assets are shown on the Account Owner(s) Account Statement: Securities held by COR Clearing in certificate form, as well as limited partnerships, certified shares of mutual fund companies, commodities, precious metals, annuities, life insurance policies and any other securities or instruments as may be designated by COR Clearing from time to time.

Therefore, any mutual funds held on deposit at the fund (Type M, Level 4) will need to be changed to “Street Name,” Type 1, Level 3.

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OPENING NEW ACCOUNTS –OPENING TOD ACCOUNTS

Eligible Beneficiaries

Specifically named persons or entities, such as natural person(s), trusts (including trusts that may be established by the client’s will). Custodial accounts including those established under a state Uniform Transfer to Minors Act but NOT those established under a state Uniform Gift to Minors Act. See Not Eligible For Beneficiaries.

Not Eligible for Beneficiaries

Non-specific designations such as “all my heirs at law,” “all my surviving children” or “any children not yet born” and “no per stirpes.” Also, Custodial accounts that are established under a state Uniform GIFT to Minors Act.

Clients should always consult with their own legal and tax advisors before electing or revoking a TOD account registration.

Opening Fee $ (see clearing contract for schedule of fees) Change/Revocation of TOD Registration $ (see clearing contract for schedule of fees) Processing Fee for Distribution of Assets* $ (see clearing contract for schedule of fees)

* The $ Processing Fee may be waived if all the beneficiaries elect to keep all the assets subject to the TODregistration in an account with COR Clearing for at least 12 months after the transfer to the beneficiaries.

1. Complete the Transfer on Death Agreement.a. Complete the “Primary Beneficiary Designation” section.

2. Open the TOD account on the system by accessing the Thomson One Add/Update Add New Account section.

3. Please forward the completed and signed Transfer on Death Agreement to COR Clearing’s New AccountDepartment.

To Revoke/Change Beneficiary:

1. To revoke TOD, complete an LOA to revoke the TOD agreement.

2. Forward completed LOA to the COR Clearing New Account Department.

The following steps should be taken to open a Transfer on Death Account:

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OPENING NEW ACCOUNTS – STANDARD FORMATS FOR ACCOUNT TITLES

EXHIBIT A STANDARD FORMATS FOR ACCOUNT TITLES

Type of Account Definition Format for Account Titles ____________________________________________________________________________________________

Individual Account of one person only. JOHN BROWN ____________________________________________________________________________________________

Joint - With Rights of Survivorship

Account of two or more people JOHN BROWN which will pass in full without MARY BROWN JTWROS probate to survivors upon death of one owner.

____________________________________________________________________________________________

Joint - Tenants in Common Account of two or more people where JOHN BROWN upon death, the deceased's share is MARY BROWN TEN COM payable to his/her estate, and the other share(s) to the account survivor(s).

____________________________________________________________________________________________

Joint - Tenants by Entirety Account of wife and husband which JOHN BROWN will pass in full to the survivor upon the MARY BROWN TEN ENT death of one owner. Allowable in certain states only.

____________________________________________________________________________________________

Joint - Community Property Account of husband and wife in states with community property laws.

JOHN BROWN MARY BROWN COM PROP

____________________________________________________________________________________________

Life Tenants Account of life tenancy is established JOHN BROWN LIFE TR by a will for a life tenant. There is U/W MARY BROWN always a remainder man.

____________________________________________________________________________________________

Corporation Account of a corporation. XYZ CO INC ATTN JOHN SMITH

____________________________________________________________________________________________

Partnership Account of a non-corporate partnership, XYZ AND CO which has an executed partnership ATTN JOHN SMITH agreement.

_______ _____________________________________________________________________________________

Investment Club Account of a non-corporate club XYZ INVESTMENT CLUB represented by a Manager, which has ATTN JOHN SMITH an executed investment club agreement.

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Type of Account Definition Format for Account Titles

Transfer on Death Enables client to designate an individual JOHN BROWN Or entity that will automatically become TOD BENEFICIARY ACCOUNT owner of eligible assets upon death.

_______________________________________________________________________________________________

Sole Proprietor Account of a non-corporate JOHN BROWN CO company owned by one person.

_______________________________________________________________________________________________

Association Account of a non-corporate association. XYZ ASSOCIATION (Unincorporated) _______________________________________________________________________________________________

Foundation Account of a foundation as a corporation XYZ FOUNDATION or an association.

_______________________________________________________________________________________________

IRA Individual Retirement Account. JOHN SMITH are held at COR Clearing IRA COR CLEARING CUST

_______________________________________________________________________________________________

IRA Rollover A rollover account from a qualified plan JOHN BROWN or an IRA from a prior custodian. R/O IRA COR CLEARING CUST

_______________________________________________________________________________________________

Beneficiary IRA An individual retirement account inherited from the deceased owner.

JOHN BROWN BENE JOHN SMITH DECEASED IRA COR CLEARING CUST

_______________________________________________________________________________________________

SEP Simplified employee pension plan. JOHN SMITH SEP IRA COR CLEARING CUST

_______________________________________________________________________________________________

IRA ROTH An individual retirement account in JOHN SMITH which post- tax contributions are made ROTH IRA COR CLEARING CUST

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Type of Account Definition Format for Account Titles _______________________________________________________________________________________________

IRA SIMPLE Savings Incentive Match Plan for JOHN SMITH employees. The SIMPLE IRA SIMPLE COR CLEARING CUST allows employee deferrals and employer non-elective contributions or matches to be held in a separate IRA. Plan does not require non-

discrimination testing or extensive reporting.

_______________________________________________________________________________________________

401k Account established that allows JOHN SMITH employees to save for retirement INDV 401K XYZ TRUSTEE and have savings invested while deferring income taxes until withdrawn. *

_______________________________________________________________________________________________

INDIVIDUAL PSP Individual Profit Sharing Plan * JOHN SMITH INDV PSP XYZ TRUSTEE

_______________________________________________________________________________________________

COVERDELL ESA Now called Coverdell ESA, allows TIM SMITH MINOR for tax-free savings for a child’s JOHN SMITH CUST college education ESA COR CLEARING CUST

_______________________________________________________________________________________________

Custodian Account established for a gift made JOHN A BROWN CUST under the Uniform Gift to Minors FOR MARY BROWN Act. NOTE: Format the title based UTMA/STATE CODE on the state residency of child.

_______ ________________________________________________________________________________________

Administrator/Estate Account with court appointed individual ESTATE OF MARY BROWN or bank overseeing an estate, usually JOHN BROWN ADM appointed when a person dies without a will.

____________________________________________________________________________________________

Administrator with Will Account with court appointed individual ESTATE OF MARY BROWN Annexed or bank overseeing an estate when the u/w JOHN BROWN ADM

named executor cannot or will not serve. ____________________________________________________________________________________________

Executor Account with a designated person or bank ESTATE OF MARY BROWNnamed in decedent's will to carry out JOHN BROWN EX wishes expressed in will.

____________________________________________________________________________________________

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Type of Account Definition Format for Account Titles _______________________________________________________________________________________________

Conservator Court appointed fiduciary to handle ESTATE OF MARY BROWN assets for individual who is incompetent. JOHN BROWN CONSERVATOR

____________________________________________________________________________________________ Bank Account where bank trades for a trust ABC FEDERAL BK

or for the account of an individual. Trust # 1234 ____________________________________________________________________________________________

Church Account of a church. ST JOHN CATHOLIC CHURCH ____________________________________________________________________________________________

College Account of a college. STATE STREET COLLEGE ____________________________________________________________________________________________

Trust Account where trustees have power. JOHN BROWN TTEE WILLIAM BROWN ETAL TR U/A 10/2/90

______________________________________________________________________________________________

Testamentary Trust Account created by the last will and JOHN BROWN TTEE testament of trustor. (TRUST NAME IF ESTABLISHED)

UW MARY BROWN FBO WILLIAM BROWN ______________________________________________________________________________________________

Corporate Pension Trust account set up by corporation XYZ CORP or Profit Sharing Trust for benefit of employees. Trustees PENSION TRUST U/A 10/2/88

appointed to supervise investments. ______________________________________________________________________________________________

Trustee in Bankruptcy Account where trustee is appointed by JOHN BROWN TTEE court to oversee assets or person in IN BANKRUPTCY bankruptcy. MARY BROWN

______________________________________________________________________________________________

Guardian Account where guardian is appointed by JOHN BROWN GDN FOR court for a minor. MARY BROWN A MINOR

*These accounts require a third party administrator. COR Clearing will serve as custodian onlywith limited responsibility. Please reference the COR Clearing Custodial Services Disclosure located on the Correspondent Connection under Forms & Documents/Retirement Forms/Qualified Retirement Plan Forms.

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OPENING NEW ACCOUNTS – ADD / UPDATE – RETAIL ACCOUNT

The Thomson One Add/Update Add New Account section is used to open new accounts.

ACCESS PROCEDURE

• In the Account Workbook, click on any existing account

• Click on the Add/Update tab

• Click on the Add New Account icon to access the New Account Wizard

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• Chose the type of account you wish to open

• Enter the Rep Code

• Click Next

Screen Explanation:

ACCT-TYPE Select the appropriate account category type. Please see Exhibit B – Account Category Type, at the end of this chapter for a complete list of

account types.

REP# The four-character account executive code assigned to the account


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• Enter the accountholder’s name, personal information, and contact information

• Click Next

• Please note that the “Back” button will change your account type. If used, you must

go back to the first screen and select the correct account type.

Screen Explanation:

FIRST NAME Primary Clients First Name

MIDDLE NAME Primary Clients Middle Name

LAST NAME Primary Clients Last Name

TAX ID Enter the client’s social security number or tax identification number

without a dash. Use the drop down to indicate if this number is a Social

Security number or Tax Identification Number. These are required fields.

BIRTHDAY Enter the client’s birthdate in the field as MM/DD/CCYY. Actual date of birth is the default and should be used. If the actual birthdate is not provided, the Estimated drop down option may be used.


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GENDER Enter the appropriate gender code. This is a required field. Note: For accounts opened using the name of a corporation and Institutional Accounts as the first alpha key, this field must be coded as N (not applicable).

M – Male F – Female N – Not Applicable

ANNUAL-INCOME Indicates the annual income range for this account. This field is required

A Under $25,000 B $25,001 to $50,000 C $50,001 to $100,000 D $100,001 to $200,000 E $200,001 to $500,000 F $500,001 to $1,000,000 G Over $1,000,000

NET-WORTH Indicates the estimated net worth for this account. This field is required

A Under $50,000 B $50,001 to $100,000 C $100,001 to $500,000 D $500,001 to $1,000,000 E $1,000,001 to $3,000,000 F Over $3,000,000

LIQ-WORTH Indicates the estimated liquid net worth for this account. This field is required

A Under $25,000 B $25,001 to $50,000 C $50,001 to $100,000 D $100,001 to $200,000 E $200,001 to $500,000 F $500,001 to $1,000,000 G $1,000,001 to $3,000,000 H Over $3,000,000

HOME PHONE Client’s home phone number

BUSINESS PHONE Client’s business phone number

FAX PHONE Client’s fax number

OTHER PHONE Client’s other phone number

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• Enter the required account information

• Click Next

Screen Explanation:

MMF

MMF SWEEP Automatic money market fund sweep indicator used to identify customer

participation in the automatic sweep program. An X – Sweep Purchases

and Sales is required in this field if the MMF field is coded. Cash

Standing Instructions must be 4C

Money Fund codes: COR Insured Deposit Fund (Code DLD) is the only option

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CASH STANDING INS. Cash standing instruction codes are used to designate the disposition of stock and money on cash accounts. The default is 4C. Please contact the New Accounts department to adjust the account if a coding other than 4C is required.

Standing instruction codes consist of two characters: The first character is a numeric code designating the disposition of securities:

1 – Register in client name and mail to client 4 – Register in street name and hold

The second character is an alphabetic code designating the disposition of credit balances from the sale, tender, redemption, etc. of securities:

A – Pay net credit balances C – HOLD all balances in the account

DIV STANDING INS. Enter the Dividend Standing Instruction Code. Use one of the following: (an IRAaccount can only select “1”)

1 – Dividends Directed Into Free Credit 3 – Dividends sent weekly 4 – Dividends sent semi-monthly 5 – Dividends sent monthly

CLASS CODE If the account is FINRA classified, enter the classification code:

A – Held by Firm Director B – Held by Firm Board Member C – Firm Inventory for short sale reporting D – Held by a Broker Dealer G – Repurchase Accounts M – Held by MAP Customers (Material Associated Persons) N – Firm Defined P – Accounts held by politically exposed persons (e.g. diplomat, govt official) R – Restricted from MSRB Reporting S – Accounts are restricted from both MSRB and TRACE reporting U – Held by Employees, Reps, Voting Stockholders (and allied family members) V – Beneficial to Accounts coded U W – Held by Employees, Reps, Voting Stockholders (and allied family members) of Other Securities firms X – Beneficial to Accounts Coded W Y – Held by security department employees, insurance companies, RIA firms,

general institutions (and allied family members) Z – Beneficial to Accounts Coded Y

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OPTION LEVEL Option Investment Level

1 – Covered Call Writing 2 – Covered Call Writing / Buying Puts & Calls 3 – Covered Call Writing / Buying Puts & Calls / Combinations Spreads & Straddles 4 – Covered Call Writing / Buying Puts & Calls / Combinations Spreads & Straddles / Selling Uncovered Puts 5 – Covered Call Writing / Buying Puts & Calls / Combinations Spreads & Straddles / Selling Uncovered Equity Puts & Calls 6 - Covered Call Writing / Buying Puts & Calls / Combinations Spreads & Straddles / Selling Uncovered Equity/Index Puts & Calls

ACCT REINVEST Dividend reinvestment code. Indicates whether dividends from a dividend reinvestment eligible security should be reinvested. If no code is entered at the time an account is opened, the system will default to N.

A – Dividends Reinvested For New Trades & R&D Activity C – Cash Dividends Paid For New Trades & R&D Activity unless the Security is coded for Reinvest Dividend N – Cash Dividends Paid for New Trades and R&D Activity R – Dividends Reinvested For New Trades and R&D Activity unless the Security is coded for Cash Dividend

DISCLOSURE This field designates the transmission of essential and non-essential proxy information and the disclosure of customer name.

L – Standard Transmission of all proxy information. Account information will be transmitted to the proxy vendor. X – Transmission of all proxy information and non-disclosure of customer name. A – Non-essential proxy information will not be transmitted to the proxy vendor. Account information will be transmitted to the proxy vendor. Y – Non-essential proxy information will not be transmitted to the proxy vendor and non-disclosure of customer name.

CRINT NPOST Credit interest rate

NETWORK ELIG TYPE System generated field. Enter P – Positive Response Letter Rec

OLD ACCT Up to 12-digit account number used on the previous system.

DOC TRAN LEVEL Enter the appropriate transaction level code: IRA’s can only select 001 or 003

001-Cash 002-Cash/Margin 003-Cash/Option 004-Cash/Margin/Option

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RISK TOLERANCE This field is used to identify the amount of risk the customer allows for investments within this account.

A – Low B – Moderate C – AggressiveD – Speculative

INV OBJECTIVE Enter the investment objective

A – CURRENT INCOME F – BALANCEDG – GROWTH AND INCOME H – GROWTHI – MAXIMUM GROWTH J – SPECULATION

PRINCIPAL Select X – Principal Payments Directed into Customer Free Credit Balance if a direct principal payment (return of capital) should be added to the credit balance and be held in the account rather than be paid out to the client. This is only required if your Dividend Standing Instructions are set up to mail out dividend proceeds.

EMP. CLASS CODE Employee classification code (firm defined)

EQTY DISC. MAX Percent of commission discount to be given on equity trades

BOND DISC. MAX Percent of commission discount to be given on bond trades

OPT DISC. MAX Percent of commission discount to be given on option trades

ALPHA KEYS Field heading for the following three lines. The names appearing in these fields are used as cross-references for accessing the account.

FIRST LINE – Primary last name, first name and middle initial used to access the account. At least the first name key line (LAST and FIRST MI) is required.

SECOND LINE – Secondary last name, first name and middle initial used to access the account.

THIRD LINE – Corporate name used as the third name to access the account. If the first and second name-key lines are completed in addition to this field, the CORPORATE line will take precedence and remain the first alpha key on the account; the first and second name-key lines will become the second and third alpha keys respectively.

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•

• Click Next

• Notice that if you ignore one of your firm’s required fields, you will receive an error message

• Complete the required information if applicable and click Next

Screen Explanation:

NAME LINE 1 - 4 Account Registration. See Exhibit A – Account Titles

ADDRESS LINE 1 - 2 Address

CITY Client’s city or residence. This is a required field

STATE Enter the two digit state code

ZIP Zip code and zip + 4

CNTRY OF CIT. Two-character country code identifying the country in which the

account holder has citizenship. See the NFTA Function for a list of

valid codes.

OPENING NEW ACCOUNTS – ADD / UPDATE – RETAIL ACCOUNT _________________________________________________________________________

Enter name and address information for the account title

No punctuation is permitted in Name Lines. Do Not include the following: periods, comas, ampersands (&) or any other form of punctuation.

•

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COUNTRY OF RES. Two-character country code identifying the foreign country in which the account holder currently resides. See NFTA Function for a list of valid codes.

Foreign Zip code FOREIGN ZIP

PRIMARY IRS Line number of client name whose social security or tax identification number is being used to open account. This is a required field. If the IRS registration is located on more than one line click the SECONDARY IRS checkbox and click the up and down arrows to select the lines containing the IRS registration.

* PLEASE NOTE, THERE IS NO BYPASS FUNCTIONALITY FOR AN UNRECOGNIZED ADDRESS IN THOMSON ONE.TO OVERRIDE, USE THE BACT FUNCTION IN NETWORK GATEWAY.

SDAFDS

PLACE AN "N" IN THE USE Z-4 FIELD.

Canadian Province code. Please note the IBD must adhere to proper provincial registration requirements to hold Canadian accounts.

PROV

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“Sending account information to host” message should display

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If the client's address is a P.O. Box, uncheck the box and click Next.

If the client's address is a physical mailing address, leave the box checked and click Next.

Associated People cannot have a P.O. Box as their address in DAML.

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• Enter the Associated Person (Or Entity’s) information• Click Next

Screen Explanation:

RELATIONSHIP Enter one of the following codes which represent the relationship to the account.

PRIMARY – Primary Owner (A Primary record is required for each account)

SECONDRY – Secondary Owner ASSOCIATE – Associated Party

Examples: • Individual Accounts – Primary person would be a “P”• Joint Accounts – Primary owner is a “P”, All secondary owners are “O”.• Custodial accounts for minors – The Custodian is the primary and coded “P”.

The minor is the associated person until the age of majority and coded “A” as anassociated person.

• Corporation or other business entities – Primary is the entity and coded “P”,all authorized persons for the corporation are coded “A” as an associated person.

• Sole proprietorship - Primary person is coded a “P”

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TYPE Enter INDV (Individual) or NONI (Non Individual)

SOURCE OF FUND Source of funds for the account

A – Investments B – Compensation C – Retirement Assets D – Other E – Gift F – Donations G – Insurance Payout H – Inheritance I – Social Security Benefits J – Legal Settlement K – Spouse / Parent L – Lottery / Gaming M – Business Revenue N – Sale Of Business Or Property

NASD AFFIL Enter “Y” if the person has any affiliation with FINRA Enter “N” if the person has no affiliation with the FINRA

TAX ID Enter the client’s social security number or tax identification number without a dash. Use the drop down to indicate if this number is a Social Security number of Tax Identification Number. These are required fields. When opening an IRA use the client's Social Security Number in this field.

ID TYPE Type the two digit government ID code

D1 - Driver's License OT - Other PP - Passport ST - State ID FT - Foreign Tax ID

PLACE OF ISSUE Enter the two digit state code for the issue place of the government ID

ISSUED Enter the issue date for the government ID

EXPIRES Enter the expiration date for the government ID

ID NUM Enter the government ID number

BIRTH Enter the client’s birthdate if not already populated

FIRST Enter the client’s first name if not already populated

MIDDLE Enter the client’s middle name if not already populated

LAST Enter the client’s last name if not already populated

ADDL Enter additional address information if needed

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ADDR 1 Enter the client’s address if not already populated


CITY Enter the City if not already populated

STATE Enter the two digit state code if not already populated

ZIP + 4 Enter the zip code if not already populated

FOREIGN ZIP Foreign ZIP

PROV Canadian Province code. Please note the IBD must adhere to proper provincial registration requirements to hold Canadian accounts.

CITIZEN Two-character country code identifying the country in which the account holder has citizenship. See the NFTA Function for a list of valid codes.

RESIDE Two-character country code identifying the foreign country in which the account holder currently resides. See NFTA Function for a list of valid codes.

VERIFY Verify address

*PLEASE NOTE, THERE IS NO BYPASS FUNCTIONALITY FOR AN UNRECOGNIZED ADDRESS IN THOMSON ONE. TO OVERRIDE, USE THE DAML FUNCTION IN NETWORK GATEWAY. PLACE AN "N" IN THE USE Z-4 FIELD.

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HOME

BUSINESS

FAX

OTHER

OCCUP

EMP NAME

Years EMPL

PHONE

ADDR1

• Enter the Associated Person’s phone number(s) and employment information• Click Next

Client’s home phone number

Client’s business phone number

Client’s fax number

Client’s other phone number

Enter occupation

Enter employer’s name

Enter number of years employed

Employer’s phone number

Employer’s Address

Screen Explanation:

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jason.rosales

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Marked set by jason.rosales


ADDR2 Employer’s Address

CITY Employer’s City

STATE Employer’s State

ZIP Employer’s Zip

FOREIGN ZIP Employer’s foreign Zip


RESIDE Two-character country code identifying the foreign country in which the business currently resides. See NFTA Function for a list of valid codes.

PROV Canadian Province code. Please note the IBD must adhere to proper provincialregistration requirements to hold Canadian accounts.

*PLEASE NOTE, THERE IS NO BYPASS FUNCTIONALITY FOR AN UNRECOGNIZED ADDRESS IN THOMSON ONE.TO OVERRIDE, USE THE DAML FUNCTION IN NETWORK GATEWAY. PLACE AN "N" IN THE USE Z-4 FIELD.

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You should see a screen which asks whether or not you want to add another Associated Person to the account

• Click Yes or No• Click Next if you are entering another Associated Person

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Complete additional client demographic information.

Screen Explanation:

BUSINESS NATURE Select appropriate designation from the drop down menu.

OCCUPATION Select appropriate designation from the drop down menu.

YEARS EMPLOYED

EMP NAME

EMPLOYERS ADDRESS

EMPLOYERS CITY

EMPLOYERS STATE

EMPLOYERS ZIP

MARITAL STATUS

EDUCATION LEVEL

OPENING NEW ACCOUNTS – ADD / UPDATE – RETAIL ACCOUNTO ____________________________________________________________________________________________________________________


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HOME OWN/RENT Choose from the drop down menu (OWNS/RENTS)

RETIRED Choose from the drop down menu (YES/NO)

E-MAIL ADDRESS

SECONDARY E-MAIL ADDRESS

Complete SPOUSAL INFORMATION (if applicable) in the same manner as primary account

holder.

Continue with additional account holder information. Complete screen as follows.

DEPENDENTS

INCOME TAX BRACKET

INITIAL TRANSACTION

ESTIMATED VALUE OF INVESTMENT

PLANNED INVESTMENT AMOUNT

ACQUIRED

CORPORATE OFFICER

CLIENT PERSONALLY MET

POLICY OWNER


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Special Handling record is used to request duplicate statements, confirmations & tax documents. These are typically sent to Tax Advisors, Financial Consultants or any related third party per the client's instructions. A "Yes" in the "Dup" fields (Confirm/Statements/1099) will send a copy to the address listed on the left (Special Handling record). The "Copies" fields (Confirm/Statements/1099) should be left blank to avoid sending additional unnecessary copies. Please remember, the account will automatically receive these documents sent to the address of record.

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The optional ACRE record is used for documenting account relationship management (i.e. referrals or business partner contacts).

At this point, you are ready to click Finish and view the 8 digit account number assigned by BETA.

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If you have completed all the required screens and fields, you should see the account added to the Account Workbook with an account number assigned to it.

Final processing for the account must include the completion of a DEMI record in the Network/Gateway BETA to comply with FATCA legislature. This requirement is now mandatory for ALL account types with the exception of domestic qualified retirement accounts (Traditional IRA, Roth, SIMPLE, SEP, 401K, etc). Please complete the following instructions. Failure to do so could result in unnecessary withholding for your client. Please contact the Tax Department at 402-384-2048 for further information regarding FATCA legislature.

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Follow the procedures below to add, update, or void FATCA records associated with an account on the DEMI

screen.

Procedures:

Only one FATCA DEMI record can be added to an account.

At minimum, a FATCA DEMI record must have the CLASS, STATUS and RECEIPT date fields populated. For ForeignFinancial Institutions (FFI); the Global Intermediary Identification Number (GIIN) is also required.

COR Clearing will be responsible for verifying the GIIN number and populating the VALIDATION field.

STEPS TO ADD A FATCA RECORD 1. Access the DEMI screen for the account.

2. Type ADD in the FUNC field.

3. Type your security code in the WHO field.4. Type FTCA in the CATEGORY field.5. Press ENTER.

6. Type the FATCA class code in the CLASS field. FORMAT: Two digits (SEEFLOWCHART ON FOLLOWING PAGE)

7. Type the status code of the FATCA information in the STATUS field.

VALID STATUS CODES:

A – Applied (for GIIN) X - Received (In Good Order)

8. Press ENTER to complete the record.

OPENING NEW ACCOUNTS – ADD / UPDATE - RETAIL ACCOUNT PROCEDURES

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DEMI Account Categories

DomesticAccounts Foreign Accounts

Fore

ign

En

titi

es

Foreign Entity Classifications

Domestic account: Entity or

Individual or Joint

Foreign account:

Individual or Joint

Two digits required: 23 - Individual.

Two digits required:01 - U.S. withholding agent - Fl.02 - U.S. withholding agent - other. 04 - Territory Fl - treated as U.S. person. 33 - U.S. reportable account. 34 - Non-consenting U.S. account.45 - Recalcitrant pool - U.S. persons 48 - U.S. payees pool.

IRS FATCA Account Classifications Updated for 2016

Two digits required:03 - Territory Fl - not treated as U.S. person.05 - Participating FFI - other.06 - Participating FFI - reporting model 2 FFI.07 - Registered deemed-compliant FFI - reporting model 1 FFI.08 - Registered deemed-compliant FFI - sponsored entity.09 - Registered deemed-compliant FFI - other.10 - Certified deemed-compliant FFI - other.11 - Certified deemed-compliant FFI - FFI with low value accounts. 12 - Certified deemed-compliant FFI - non-registering local bank. 13- Certified deemed-compliant FFI - sponsored entity.14 - Certified deemed-compliant FFI - investment advisor or manager. 15 - Non-participating FFI.16 - Owner-documented FFI.17 - Limited branch treated as non-participating FFI. 18 - Limited FFI treated as non-participating FFI.19 - Passive NFFE identifying Substantial U.S. Owners.20 - Passive NFFE with no Substantial U.S. owners.21 - Publicly traded NFEE or affiliate of publicly traded NFEE.22 - Active NFFE.24 - Section 501(c) entities.25 - Excepted territory NFFE.26 - Expected NFEE - other.27 - Exempt beneficial owner.28 - Entity wholly owned by exempt beneficial owners.29 - Unknown recipient.30 - Recalcitrant account holder.31 - Non-reporting IGA FFI.32 - Direct reporting NFFE.35 - Sponsored direct reporting NFFE. 36 - Excepted inter-affiliate FFI. 37 - Undocumented preexisting obligation. 38 - U.S. Branch - ECI presumption applied.39 - Account Holder of Excluded Financial Account.40 - Passive NFFE reported by FFI.41 - NFFE subject to 1472 withholding.42 - Recalcitrant pool - no U.S. indicia. 43 - Recalcitrant pool - U.S. indicia.44 - Recalcitrant pool - dormant account.46 - Recalcitrant pool - passive NFFE's.47 - Nonparticipating FFI pool .

CONFIDENTIAL - FOR OPERATIONAL PROCESSING - NOT TO BE DISTRIBUTED - INTERNAL USE ONLY

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IRS FATCA Account Classifications Defined Updated for 2016

01‐ U.S. withholding agent ‐ Fl: A U.S. financial institution that has control, receipt, custody, disposal, or payment of any item of income that is subject to withholding.

02‐ U.S. withholding agent – other: A U.S. person or non‐financial entity that has control, receipt, custody, disposal, or payment of any item of income that is subject to withholding. This may include but is not limited to an individual, corporation, partnership, trust, association, or any other entity.

03‐ Territory Fl ‐ not treated as U.S. person: A financial institution that is formed under the laws of any possession of the United States and is not treated as a U.S. person.

04‐ Territory Fl ‐ treated as U.S. person: A financial institution that is formed under the laws of any possession of the United States and is treated as a U.S. person.

05‐ Participating FFI – other: A Foreign Financial Institution (FFI) that has agreed to comply with the requirements of an FFI agreement.

06‐ Participating FFI ‐ reporting model 2 FFI: A Foreign Financial Institution (FFI) that has agreed to comply with the requirements of an FFI agreement, including an FFI described in Model 2 IGA (Intergovernmental Agreement).

07‐ Registered deemed‐compliant FFI ‐ reporting model 1 FFI: A Foreign Financial Institution (FFI) that falls under a Model 1 IGA (Intergovernmental Agreement) and has complied with its account holder due diligence obligation, certified that is has complied with all obligations of a deemed compliant FFI, obtained an FFI‐EIN, renews its certification every 3 years and notifies the IRS of a change in circumstances that would make it ineligible and is a (1) Local FFI, (2) non‐reporting member of a participating FFI group, (3) qualified collective investment vehicle or (4) a restricted fund.

08‐ Registered deemed‐compliant FFI ‐ sponsored entity: A Foreign Financial Institution (FFI) whose sponsor has complied with all requirements of a registered deemed‐compliant FFI.

09‐ Registered deemed‐compliant FFI – other: A Foreign Financial Institution (FFI) that has complied with its account holder due diligence obligation, certified that is has complied with all obligations of a deemed compliant FFI, obtained an FFI‐EIN, renews its certification every 3 years and notifies the IRS of a change in circumstances that would make it ineligible and is a (1) Local FFI, (2) non‐reporting member of a participating FFI group, (3) qualified collective investment vehicle or (4) a restricted fund.

10‐ Certified deemed‐compliant FFI – other: Certain types of Foreign Financial Institutions (FFI) that have provided withholding agents with relevant documentation certifying their FATCA status. These entities are not required to register as FFIs and will not obtain GIINs.


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11‐ Certified deemed‐compliant FFI ‐ FFI with low value accounts: Foreign Financial Institutions (FFI) with only accounts valued at less than $50,000 aggregate that have provided withholding agents with relevant documentation certifying their FATCA status. These entities are not required to register as FFIs and will not obtain GIINs.

12‐ Certified deemed‐compliant FFI ‐ non‐registering local bank: Foreign Financial Institutions (FFI) classified as a local banks that have provided withholding agents with relevant documentation certifying their FATCA status. These entities are not required to register as FFIs and will not obtain GIINs.

13‐ Certified deemed‐compliant FFI ‐ sponsored entity: Foreign Financial Institutions (FFI) that are sponsored entities and have provided withholding agents with relevant documentation certifying their FATCA status. These entities are not required to register as FFIs and will not obtain GIINs.

14‐ Certified deemed‐compliant FFI ‐ investment advisor or manager: Foreign Financial Institutions (FFI) who are investment advisors or managers and have provided withholding agents with relevant documentation certifying their FATCA status. These entities are not required to register as FFIs and will not obtain GIINs.

15‐ Non‐participating FFI: A Foreign Financial Institution (FFI) other than a participating FFI, a deemed compliant FFI or an exempt beneficial owner.

16‐ Owner‐documented FFI: (1) A Foreign Financial Institution (FFI) solely because it is an investment company. (2) Is not owned by or in an expanded affiliated group with any FFI that is a depository institution, custodial institution or specified insurance company. (3) Does not maintain an account for any Nonparticipating Foreign Financial Institution (NPFFI). (4) Provides its withholding agent with all necessary documentation and agrees to notify the withholding agent of any changes in circumstances. (5) Requires its withholding agent to undertake FATCA reporting.

17‐ Limited branch treated as non‐participating FFI: A branch of a Foreign Financial Institution (FFI) that, under the laws of the jurisdiction cannot become FATCA compliant.

18‐ Limited FFI treated as non‐participating FFI: A Foreign Financial Institutions (FFI) which is prohibited by local law from becoming FATCA compliant but must register as such with the IRS and become FATCA compliant to the extent permitted under local law.

19‐ Passive NFFE identifying Substantial U.S. owners: A Nonfinancial Foreign Entity (NFFE) who has U.S. beneficial owners who own 10% or more of: (1) the equity (by vote or value), (2) the profits or capital interest or (3) the beneficial interest in a trust, or any interest in grantor trust associated with the entity.


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20‐ Passive NFFE with no Substantial U.S. owners: A Nonfinancial Foreign Entity (NFFE) who has no U.S. beneficial owners or U.S. beneficial owners who own less than 10% of: (1) the equity (by vote or value), (2) the profits or capital interest or (3) the beneficial interest in a trust, or any interest in grantor trust associated with the entity.

21‐ Publicly traded NFFE or affiliate of publicly traded NFFE: A Nonfinancial Foreign Entity (NFFE) or subsidiary whose stock is traded on an established securities market.

22‐ Active NFFE: A nonfinancial foreign entity (NFFE) for which less than 50% of its income from the previous calendar year is considered passive income, or less than 50% of its assets generate passive income.

23– Individual: An account held by one or more foreign persons (non‐entities).

24– Section 501(c) entities: A tax‐exempt nonprofit organization in the U.S. excluded from withholding.

25‐ Excepted territory NFFE: A Nonfinancial Foreign Entity (NFFE) that is wholly owned by residents of the territory and formed under the laws of any possession of the United States which is exclude from withholding.

26‐ Excepted NFEE – other: A Nonfinancial Foreign Entity (NFFE) which is excluded from withholding and includes: Foreign Governments, International Organizations and Foreign Central Banks.

27‐ Exempt beneficial owner: Foreign Financial Institutions exempt from withholding. These entities include: (1) Foreign governments, their political subdivisions and wholly owned agencies. (2) International organizations and wholly owned agencies. (3) Foreign Central Banks. (4) Governments of U.S. possessions. (5) Foreign Retirement Funds.

28‐ Entity wholly owned by exempt beneficial owners: Foreign investment entities wholly owned by one or more exempt beneficial owners.

29‐ Unknown recipient: An unknown person or entity that receives a payment from an intermediary who has failed to provide sufficient information to the Withholding Agent.

30‐ Recalcitrant account holder: An account holder that (1) fails to comply with reasonable requests for information necessary to determine if the account is a United States account, (2) fails to provide the name, address and TIN of each “specified United States person” and each substantial United States owner of a United States owned foreign entity or (3) fails to provide a waiver of any foreign law that would prevent a foreign financial institution from reporting information required under FATCA.

31‐ Non‐reporting IGA FFI: A Foreign Financial Institution (FFI) that is not a registered deemed compliant FFI and has not reported in accordance with the Model 1 or Model 2 IGA (Intergovernmental Agreement).


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32‐ Direct reporting NFFE: A Nonfinancial Foreign Entity (NFFE) that directly reports information via Form 8966 to the IRS annually regarding substantial U.S. owners. A direct‐reporting NFFE must obtain a GIIN (Global Intermediary Identification Number) and disclose it to the Withholding Agent to avoid withholding.

33‐ U.S. reportable account: An account held by one or more U.S. persons or entities.

34‐ Non‐consenting U.S. account: A preexisting account that has determined: (1) Is a U.S. account in accordance with the due diligence procedures. (2) The laws of the FATCA Partner prohibit the reporting required under a Foreign Financial Institution (FFI) Agreement absent consent of the Account Holder. (3) The reporting FATCA Partner Financial Institution has sought, but was unable to obtain, the required consent to report the Account Holder's U.S. TIN and (4) the Reporting FATCA Partner Financial Institution has reported, or was required to report, aggregate account information to the IRS as prescribed under the FATCA regulations.

35‐ Sponsored direct reporting NFFE: A Nonfinancial Foreign Entity (NFFE) whose sponsor directly reports information via Form 8966 to the IRS annually regarding substantial U.S. owners. A direct reporting NFFE’s sponsor will obtain a GIIN (Global Intermediary Identification Number) for the entity to provide the Withholding Agent.

36‐ Excepted inter‐affiliate FFI: A Foreign Financial Institution (FFI) that is part of an expanded affiliated group. The entity: (1) Maintains financial accounts only for members of its expanded affiliated group, (2) Makes withholdable payments to only members of its expanded affiliated group that are not limited FFIs or limited branches, (3) Does not own an account with or receive payments from a withholding agent outside of its expanded affiliated group (a depository account is permitted in the country the entity is operating to pay for expenses), (4) Will not report or act as an agent for the benefit of any financial institution for chapter 4 purposes, including those within its expanded affiliated group.

37‐ Undocumented preexisting obligation: An account that has certified its Chapter 3 status but has an unknown FATCA (Chapter 4) status due to the preexisting account documentation grace period (ends January 1, 2016).

38‐ U.S. branch – ECI presumption applied: A U.S. branch of a regulated foreign bank or insurance company that receives income effectively connected to a U.S. trade or business (ECI).

39‐ Account Holder of Excluded Financial Account: An account not subject to FATCA review or reporting due to it being excluded under an Intergovernmental Agreement (IGA).

40‐ Passive NFFE reported by FFI: A Nonfinancial Foreign Entity (NFFE) that is not an excepted NFFE and whose FATCA requirements are administered by a Foreign Financial Institution (FFI).

41‐ NFFE subject to 1472 withholding: A Nonfinancial Foreign Entity (NFFE) that has failed to provide FATCA information to the Withholding Agent.


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42‐ Recalcitrant pool ‐ no U.S. indicia: A grouping of payees that receive withholdable payments made thru a Foreign Financial Institution (FFI) that exhibit no U.S. indicia and have failed to comply with the FFI’s request for documentation.

43‐ Recalcitrant pool ‐ U.S. indicia: A grouping of payees that receive withholdable payments made thru a Foreign Financial Institution (FFI) that exhibit U.S. indicia and have failed to comply with the FFI’s request for documentation.

44‐ Recalcitrant pool ‐ dormant account: A grouping of payees that receive withholdable payments made thru a Foreign Financial Institution (FFI) that exhibit inactivity or appear idol and have failed to comply with the FFI’s request for documentation.

45‐ Recalcitrant pool – U.S. persons: A grouping of payees that receive withholdable payments made thru a Foreign Financial Institution (FFI) that are deemed U.S. persons and have failed to comply with the FFI’s request for documentation.

46‐ Recalcitrant pool ‐ passive NFFEs: A grouping of payees that receive withholdable payments made thru a Foreign Financial Institution (FFI) that are deemed Nonfinancial Foreign Entities (NFFE) and have failed to comply with the FFI’s request for documentation.

47‐ Nonparticipating FFI pool: A grouping of payees deemed Foreign Financial Institutions (FFI) that receive withholdable payments.

48‐ U.S. payees pool: A grouping of payees deemed U.S. reportable that receive withholdable payments.


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OPENING NEW ACCOUNTS – ADD / UPDATE - SPECIAL FOREIGN ACCOUNT PROCEDURES

Chose the appropriate foreign account type you wish to open

Enter the Rep Code

•

•

• Click Next

The following fields must be populated for foreign account opening:

• RESID – this is the country in which the client is a resident

• CTRY – this is the country where the account is located

• FORGN-ZIP – zip code for the address on the account

• ALT CITY in AIRE screen – this records the city the account is located in for reportingpurposes

Please Note: All foreign accounts must have the correctly formatted country code and the zip code must be

populated in the Foreign Zip code field in both ACCT and DAML.

Add a DEMI record for Foreign Account Tax Compliance Act (FATCA)Records

•

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In BETA, you will use both BACT and the DAML functions to populate Foreign Zip codes

In Thomson ONE, you will use the Contact and Associated People tabs in the Account Workbook/Add Update to populate Foreign Zip codes.

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Associated People tab:

To ensure you have proper zip code formatting for your foreign accounts, please reference this link: http://www.upu.int/uploads/tx_sbdownloader/manualAddressingKnowledgeCentreGeneralIssuesEn.pdf

The AIRE function in BETA must be completed for ALL foreign accounts.

Foreign accounts need an additional screen populated to accommodate correct reporting of the city in which the client resides. Procedures for completing this screen are:

Type “AIRE (account number)” and hit enter, which will take you to a screen that looks like the below:

Type “add” in the function field and then enter your WHO code and press enter.

Now, under “SUPP-FIELD” type “alt city” and under “VALUE” type the name of the city in which the client lives. Once complete press enter.

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Follow the procedures below to add, update, or void FATCA records associated with an account on the DEMI screen.

Procedures:

Only one FATCA DEMI record can be added to an account. At minimum, a FATCA DEMI record must have the CLASS, STATUS and RECEIPT date fields populated. For Foreign

Financial Institutions (FFI); the Global Intermediary Identification Number (GIIN) is also required. COR

Clearing will be responsible for verifying the GIIN number and populating the VALIDATION field.

STEPS TO ADD A FATCA RECORD 1. Access the DEMI screen for the account.

2. Type ADD in the FUNC field.

3. Type your security code in the WHO field.4. Type FTCA in the CATEGORY field.5. Press ENTER.

6. Type the FATCA class code in the CLASS field. FORMAT: Two digits (SEEFLOWCHART ON FOLLOWING PAGE)

7. Type the status code of the FATCA information in the STATUS field.

VALID STATUS CODES:

A – Applied (for GIIN) X - Received (In Good Order)

8. Press ENTER to complete the record.


Final processing for the account must include the completion of a DEMI record in the Network/Gateway BETA to comply with FATCA legislature. This requirement is now mandatory for ALL account types with the exception of domestic qualified retirement accounts (Traditional IRA, Roth, SIMPLE, SEP, 401K, etc). Please complete the following instructions. Failure to do so could result in unnecessary withholding for your client. Please contact the Tax Department at 402-384-2048 for further information regarding FATCA legislature.

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DEMI Account Categories

DomesticAccounts Foreign Accounts

Fore

ign

En

titi

es

Foreign Entity Classifications

Domestic account: Entity or

Individual or Joint

Foreign account:

Individual or Joint

Two digits required: 23 - Individual.

Two digits required:01 - U.S. withholding agent - Fl.02 - U.S. withholding agent - other. 04 - Territory Fl - treated as U.S. person. 33 - U.S. reportable account. 34 - Non-consenting U.S. account.45 - Recalcitrant pool - U.S. persons 48 - U.S. payees pool.

IRS FATCA Account Classifications Updated for 2016

Two digits required:03 - Territory Fl - not treated as U.S. person.05 - Participating FFI - other.06 - Participating FFI - reporting model 2 FFI.07 - Registered deemed-compliant FFI - reporting model 1 FFI.08 - Registered deemed-compliant FFI - sponsored entity.09 - Registered deemed-compliant FFI - other.10 - Certified deemed-compliant FFI - other.11 - Certified deemed-compliant FFI - FFI with low value accounts. 12 - Certified deemed-compliant FFI - non-registering local bank. 13- Certified deemed-compliant FFI - sponsored entity.14 - Certified deemed-compliant FFI - investment advisor or manager. 15 - Non-participating FFI.16 - Owner-documented FFI.17 - Limited branch treated as non-participating FFI. 18 - Limited FFI treated as non-participating FFI.19 - Passive NFFE identifying Substantial U.S. Owners.20 - Passive NFFE with no Substantial U.S. owners.21 - Publicly traded NFEE or affiliate of publicly traded NFEE.22 - Active NFFE.24 - Section 501(c) entities.25 - Excepted territory NFFE.26 - Expected NFEE - other.27 - Exempt beneficial owner.28 - Entity wholly owned by exempt beneficial owners.29 - Unknown recipient.30 - Recalcitrant account holder.31 - Non-reporting IGA FFI.32 - Direct reporting NFFE.35 - Sponsored direct reporting NFFE. 36 - Excepted inter-affiliate FFI. 37 - Undocumented preexisting obligation. 38 - U.S. Branch - ECI presumption applied.39 - Account Holder of Excluded Financial Account.40 - Passive NFFE reported by FFI.41 - NFFE subject to 1472 withholding.42 - Recalcitrant pool - no U.S. indicia. 43 - Recalcitrant pool - U.S. indicia.44 - Recalcitrant pool - dormant account.46 - Recalcitrant pool - passive NFFE's.47 - Nonparticipating FFI pool .


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IRS FATCA Account Classifications Defined Updated for 2016

01‐ U.S. withholding agent ‐ Fl: A U.S. financial institution that has control, receipt, custody, disposal, or payment of any item of income that is subject to withholding.

02‐ U.S. withholding agent – other: A U.S. person or non‐financial entity that has control, receipt, custody, disposal, or payment of any item of income that is subject to withholding. This may include but is not limited to an individual, corporation, partnership, trust, association, or any other entity.

03‐ Territory Fl ‐ not treated as U.S. person: A financial institution that is formed under the laws of any possession of the United States and is not treated as a U.S. person.

04‐ Territory Fl ‐ treated as U.S. person: A financial institution that is formed under the laws of any possession of the United States and is treated as a U.S. person.

05‐ Participating FFI – other: A Foreign Financial Institution (FFI) that has agreed to comply with the requirements of an FFI agreement.

06‐ Participating FFI ‐ reporting model 2 FFI: A Foreign Financial Institution (FFI) that has agreed to comply with the requirements of an FFI agreement, including an FFI described in Model 2 IGA (Intergovernmental Agreement).

07‐ Registered deemed‐compliant FFI ‐ reporting model 1 FFI: A Foreign Financial Institution (FFI) that falls under a Model 1 IGA (Intergovernmental Agreement) and has complied with its account holder due diligence obligation, certified that is has complied with all obligations of a deemed compliant FFI, obtained an FFI‐EIN, renews its certification every 3 years and notifies the IRS of a change in circumstances that would make it ineligible and is a (1) Local FFI, (2) non‐reporting member of a participating FFI group, (3) qualified collective investment vehicle or (4) a restricted fund.

08‐ Registered deemed‐compliant FFI ‐ sponsored entity: A Foreign Financial Institution (FFI) whose sponsor has complied with all requirements of a registered deemed‐compliant FFI.

09‐ Registered deemed‐compliant FFI – other: A Foreign Financial Institution (FFI) that has complied with its account holder due diligence obligation, certified that is has complied with all obligations of a deemed compliant FFI, obtained an FFI‐EIN, renews its certification every 3 years and notifies the IRS of a change in circumstances that would make it ineligible and is a (1) Local FFI, (2) non‐reporting member of a participating FFI group, (3) qualified collective investment vehicle or (4) a restricted fund.

10‐ Certified deemed‐compliant FFI – other: Certain types of Foreign Financial Institutions (FFI) that have provided withholding agents with relevant documentation certifying their FATCA status. These entities are not required to register as FFIs and will not obtain GIINs.


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11‐ Certified deemed‐compliant FFI ‐ FFI with low value accounts: Foreign Financial Institutions (FFI) with only accounts valued at less than $50,000 aggregate that have provided withholding agents with relevant documentation certifying their FATCA status. These entities are not required to register as FFIs and will not obtain GIINs.

12‐ Certified deemed‐compliant FFI ‐ non‐registering local bank: Foreign Financial Institutions (FFI) classified as a local banks that have provided withholding agents with relevant documentation certifying their FATCA status. These entities are not required to register as FFIs and will not obtain GIINs.

13‐ Certified deemed‐compliant FFI ‐ sponsored entity: Foreign Financial Institutions (FFI) that are sponsored entities and have provided withholding agents with relevant documentation certifying their FATCA status. These entities are not required to register as FFIs and will not obtain GIINs.

14‐ Certified deemed‐compliant FFI ‐ investment advisor or manager: Foreign Financial Institutions (FFI) who are investment advisors or managers and have provided withholding agents with relevant documentation certifying their FATCA status. These entities are not required to register as FFIs and will not obtain GIINs.

15‐ Non‐participating FFI: A Foreign Financial Institution (FFI) other than a participating FFI, a deemed compliant FFI or an exempt beneficial owner.

16‐ Owner‐documented FFI: (1) A Foreign Financial Institution (FFI) solely because it is an investment company. (2) Is not owned by or in an expanded affiliated group with any FFI that is a depository institution, custodial institution or specified insurance company. (3) Does not maintain an account for any Nonparticipating Foreign Financial Institution (NPFFI). (4) Provides its withholding agent with all necessary documentation and agrees to notify the withholding agent of any changes in circumstances. (5) Requires its withholding agent to undertake FATCA reporting.

17‐ Limited branch treated as non‐participating FFI: A branch of a Foreign Financial Institution (FFI) that, under the laws of the jurisdiction cannot become FATCA compliant.

18‐ Limited FFI treated as non‐participating FFI: A Foreign Financial Institutions (FFI) which is prohibited by local law from becoming FATCA compliant but must register as such with the IRS and become FATCA compliant to the extent permitted under local law.

19‐ Passive NFFE identifying Substantial U.S. owners: A Nonfinancial Foreign Entity (NFFE) who has U.S. beneficial owners who own 10% or more of: (1) the equity (by vote or value), (2) the profits or capital interest or (3) the beneficial interest in a trust, or any interest in grantor trust associated with the entity.


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20‐ Passive NFFE with no Substantial U.S. owners: A Nonfinancial Foreign Entity (NFFE) who has no U.S. beneficial owners or U.S. beneficial owners who own less than 10% of: (1) the equity (by vote or value), (2) the profits or capital interest or (3) the beneficial interest in a trust, or any interest in grantor trust associated with the entity.

21‐ Publicly traded NFFE or affiliate of publicly traded NFFE: A Nonfinancial Foreign Entity (NFFE) or subsidiary whose stock is traded on an established securities market.

22‐ Active NFFE: A nonfinancial foreign entity (NFFE) for which less than 50% of its income from the previous calendar year is considered passive income, or less than 50% of its assets generate passive income.

23– Individual: An account held by one or more foreign persons (non‐entities).

24– Section 501(c) entities: A tax‐exempt nonprofit organization in the U.S. excluded from withholding.

25‐ Excepted territory NFFE: A Nonfinancial Foreign Entity (NFFE) that is wholly owned by residents of the territory and formed under the laws of any possession of the United States which is exclude from withholding.

26‐ Excepted NFEE – other: A Nonfinancial Foreign Entity (NFFE) which is excluded from withholding and includes: Foreign Governments, International Organizations and Foreign Central Banks.

27‐ Exempt beneficial owner: Foreign Financial Institutions exempt from withholding. These entities include: (1) Foreign governments, their political subdivisions and wholly owned agencies. (2) International organizations and wholly owned agencies. (3) Foreign Central Banks. (4) Governments of U.S. possessions. (5) Foreign Retirement Funds.

28‐ Entity wholly owned by exempt beneficial owners: Foreign investment entities wholly owned by one or more exempt beneficial owners.

29‐ Unknown recipient: An unknown person or entity that receives a payment from an intermediary who has failed to provide sufficient information to the Withholding Agent.

30‐ Recalcitrant account holder: An account holder that (1) fails to comply with reasonable requests for information necessary to determine if the account is a United States account, (2) fails to provide the name, address and TIN of each “specified United States person” and each substantial United States owner of a United States owned foreign entity or (3) fails to provide a waiver of any foreign law that would prevent a foreign financial institution from reporting information required under FATCA.

31‐ Non‐reporting IGA FFI: A Foreign Financial Institution (FFI) that is not a registered deemed compliant FFI and has not reported in accordance with the Model 1 or Model 2 IGA (Intergovernmental Agreement).


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32‐ Direct reporting NFFE: A Nonfinancial Foreign Entity (NFFE) that directly reports information via Form 8966 to the IRS annually regarding substantial U.S. owners. A direct‐reporting NFFE must obtain a GIIN (Global Intermediary Identification Number) and disclose it to the Withholding Agent to avoid withholding.

33‐ U.S. reportable account: An account held by one or more U.S. persons or entities.

34‐ Non‐consenting U.S. account: A preexisting account that has determined: (1) Is a U.S. account in accordance with the due diligence procedures. (2) The laws of the FATCA Partner prohibit the reporting required under a Foreign Financial Institution (FFI) Agreement absent consent of the Account Holder. (3) The reporting FATCA Partner Financial Institution has sought, but was unable to obtain, the required consent to report the Account Holder's U.S. TIN and (4) the Reporting FATCA Partner Financial Institution has reported, or was required to report, aggregate account information to the IRS as prescribed under the FATCA regulations.

35‐ Sponsored direct reporting NFFE: A Nonfinancial Foreign Entity (NFFE) whose sponsor directly reports information via Form 8966 to the IRS annually regarding substantial U.S. owners. A direct reporting NFFE’s sponsor will obtain a GIIN (Global Intermediary Identification Number) for the entity to provide the Withholding Agent.

36‐ Excepted inter‐affiliate FFI: A Foreign Financial Institution (FFI) that is part of an expanded affiliated group. The entity: (1) Maintains financial accounts only for members of its expanded affiliated group, (2) Makes withholdable payments to only members of its expanded affiliated group that are not limited FFIs or limited branches, (3) Does not own an account with or receive payments from a withholding agent outside of its expanded affiliated group (a depository account is permitted in the country the entity is operating to pay for expenses), (4) Will not report or act as an agent for the benefit of any financial institution for chapter 4 purposes, including those within its expanded affiliated group.

37‐ Undocumented preexisting obligation: An account that has certified its Chapter 3 status but has an unknown FATCA (Chapter 4) status due to the preexisting account documentation grace period (ends January 1, 2016).

38‐ U.S. branch – ECI presumption applied: A U.S. branch of a regulated foreign bank or insurance company that receives income effectively connected to a U.S. trade or business (ECI).

39‐ Account Holder of Excluded Financial Account: An account not subject to FATCA review or reporting due to it being excluded under an Intergovernmental Agreement (IGA).

40‐ Passive NFFE reported by FFI: A Nonfinancial Foreign Entity (NFFE) that is not an excepted NFFE and whose FATCA requirements are administered by a Foreign Financial Institution (FFI).

41‐ NFFE subject to 1472 withholding: A Nonfinancial Foreign Entity (NFFE) that has failed to provide FATCA information to the Withholding Agent.


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42‐ Recalcitrant pool ‐ no U.S. indicia: A grouping of payees that receive withholdable payments made thru a Foreign Financial Institution (FFI) that exhibit no U.S. indicia and have failed to comply with the FFI’s request for documentation.

43‐ Recalcitrant pool ‐ U.S. indicia: A grouping of payees that receive withholdable payments made thru a Foreign Financial Institution (FFI) that exhibit U.S. indicia and have failed to comply with the FFI’s request for documentation.

44‐ Recalcitrant pool ‐ dormant account: A grouping of payees that receive withholdable payments made thru a Foreign Financial Institution (FFI) that exhibit inactivity or appear idol and have failed to comply with the FFI’s request for documentation.

45‐ Recalcitrant pool – U.S. persons: A grouping of payees that receive withholdable payments made thru a Foreign Financial Institution (FFI) that are deemed U.S. persons and have failed to comply with the FFI’s request for documentation.

46‐ Recalcitrant pool ‐ passive NFFEs: A grouping of payees that receive withholdable payments made thru a Foreign Financial Institution (FFI) that are deemed Nonfinancial Foreign Entities (NFFE) and have failed to comply with the FFI’s request for documentation.

47‐ Nonparticipating FFI pool: A grouping of payees deemed Foreign Financial Institutions (FFI) that receive withholdable payments.

48‐ U.S. payees pool: A grouping of payees deemed U.S. reportable that receive withholdable payments.


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OPENING NEW ACCOUNTS – ADD / UPDATE – IRA ACCOUNT

OPENING IRA ACCOUNTS

The Thomson One Add/Update Add New Account section is used to open new accounts at the firm level.

ACCESS PROCEDURE

• In the Account Workbook, click on any existing account• Click on the Add/Update tab• Click on the Add New Account icon to access the New Account Wizard

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• Chose the type of account you wish to open• Enter the Rep Code• Click Next

Screen Explanation:

ACCT-TYPE Select the appropriate account category type. Please see Exhibit B – Account Category Type, at the end of this chapter for a complete list of account types.

REP# The four-character account executive code assigned to the account

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• Enter the accountholder’s name, personal information, and contact information• Click Next

Screen Explanation:

FIRST NAME Primary Clients First Name

MIDDLE NAME Primary Clients Middle Name

LAST NAME Primary Clients Last Name

TAX ID Enter the client’s social security number or tax identification number without a dash. Use the drop down to indicate if this number is a Social Security number or Tax Identification Number. These are required fields.

BIRTHDAY Enter the client’s birthdate in the field as MM/DD/CCYY. Actual date of birth is the default and should be used. If the actual birthdate is not provided, the Estimated drop down option may be used.

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GENDER Enter the appropriate gender code. This is a required field. Note: For accounts opened using the name of a corporation and Institutional Accounts as the first alpha key, this field must be coded as N (not applicable).






LIQWORTH Indicates the estimated liquid net worth for this account. This field is required


HOME PHONE Client’s home phone number

BUSINESS PHONE Client’s business phone number

FAX PHONE Client’s fax number

OTHER PHONE Client’s other phone number

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IRA TYPE Retirement Plan Type Code. Enter one of the following codes below:

BN – Beneficiary IRA CK – INDV 401K COR CLEARING CUST CP – MPP COR CLEARING CUST CS – PSP COR CLEARING CUSTED – ESA Coverdell IR – Traditional IRA IS – Sep IRA RH – Roth IRA RO – Rollover IRA XI – Simple IRA ZH – 403b (7)

IRA PRIME/SECOND Retirement Plan Primary. When opening a COR Clearing Cust IRA , the following code

must be used.

P – Primary

RR - Roth Rollover RB - Roth Beneficiary

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• Enter the required account information• Click Next

Screen Explanation:

MMF Money Fund codes: COR Insured Deposit Fund (Code DLD) is the only option

MMF SWEEP Automatic money market fund sweep indicator used to identify customer participation in the automatic sweep program. An X – Sweep Purchases and Sales is required in this field if the MMF field is coded. Cash Standing Instructions must be 4C

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DIV STANDING INS. Enter the Dividend Standing Instruction Code. Use one of the following: (an IRAaccount can only select “1”)



A – Held by Firm Director B – Held by Firm Board Member C – Firm Inventory for short sale reporting D – Held by a Broker Dealer G – Repurchase Accounts M – Held by MAP Customers (Material Associated Persons) N – Firm Defined P – Accounts held by politically exposed persons (e.g. diplomat, govn official) R – Restricted from MSRB Reporting S – Accounts are restricted from both MSRB and TRACE reporting U – Held by Employees, Reps, Voting Stockholders (and allied family members) V – Beneficial to Accounts coded U W – Held by Employees, Reps, Voting Stockholders (and allied family members) of Other Securities firms

X – Beneficial to Accounts Coded W Y – Held by security department employees, insurance companies, RIA firms,


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A – Dividends Reinvested For New Trades & R&D Activity C – Cash Dividends Paid For New Trades & R&D Activity unless the Security is coded for Reinvest Dividend N – Cash Dividends Paid for New Trades and R&D Activity R – Dividends Reinvested For New Trades and R&D Activity unless the Security is coded for Cash Dividend

DISCLOSURE This field designates the transmission of essential and non-essential proxy information and the disclosure of customer name.

L – Standard Transmission of all proxy information. Account information will be transmitted to the proxy vendor. X – Transmission of all proxy information and non-disclosure of customer name. A – Non-essential proxy information will not be transmitted to the proxy vendor. Account information will be transmitted to the proxy vendor. Y – Non-essential proxy information will not be transmitted to the proxy vendor and non-disclosure of customer name.

CRINT NPOST Credit interest rate



DOC TRAN LEVEL Enter the appropriate transaction level code: IRA’s can only select 001 or 003

001-Cash

003-Cash/Option

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Risk Tolerance This field is used to identify the amount of risk the customer allows for investments within this account

A – Low B – Moderate C – AggressiveD – Speculative

INV OBJECTIVE Enter the investment objective

A – CURRENT INCOME F – BALANCEDG – GROWTH AND INCOME H – GROWTHI – MAXIMUM GROWTH J – SPECULATION

PRINCIPAL Select X – Principal Payments Directed into Customer Free Credit Balance if a direct principal payment (return of capital) should be added to the credit balance and be held in the account rather than be paid out to the client. This is only required if your Dividend Standing Instructions are set up to mail out dividend proceeds.

EMP CLASS CODE Employee classification code (firm defined)

EQTY DISC. MAX Percent of commission discount to be given on equity trades

BOND DISC. MAX Percent of commission discount to be given on bond trades


ALPHA KEYS Field heading for the following three lines. The names appearing in these fields are used as cross-references for accessing the account.

FIRST LINE – Primary last name, first name and middle initial used to access the account. At least the first name key line (LAST and FIRST MI) is required.

SECOND LINE – Secondary last name, first name and middle initial used to access the account.

THIRD LINE – Corporate name used as the third name to access the account. If the first and second name-key lines are completed in addition to this field, the CORPORATE line will take precedence and remain the first alpha key on the account; the first and second name-key lines will become the second and third alpha keys respectively.

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•

• Click Next

• Notice that if you ignore one of your firm’s required fields, you will receive an error message

• Complete the required information and click Next

Screen Explanation:

NAME LINE 1 - 4 Account Registration. See Exhibit A – Account Titles

ADDRESS LINE 1 - 2 Address

CITY Client’s city or residence. This is a required field

STATE Enter the two digit state code


CNTRY OF CIT. Two-character country code identifying the country in which the account holder has

citizenship. See the NFTA Function for a list of valid codes.


Enter name and address information for the account titleNo punctuation is permitted in Name Lines. Do Not include the following: periods, comas, ampersands (&) or any other form of punctuation.

•

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PROV Canadian Province code. Please note the IBD must adhere to proper provincialregistration requirements to hold Canadian accounts.

FOREIGN ZIP Foreign Zip code

PRIMARY IRS Line number of client name whose social security or tax identification number is being used to open account. This is a required field. If the IRS registration is located on more than one line click the SECONDARY IRS checkbox and click the up and down arrows to select the lines containing the IRS registration.

fix

“Sending account information to host” message should display

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• Enter the Associated Person (Or Entity’s) information• Click Next

Screen Explanation:




Examples: • Individual Accounts – Primary person would be a “P”• Joint Accounts – Primary owner is a “P”, All secondary owners are “O”.• Custodial accounts for minors – The Custodian is the primary and coded “P”,


• Corporation – Primary is the Corporation and coded “P”, all authorized personsfor the corporation are coded “A” as an associated person.


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NASD AFFIL Enter “Y” if the person has any affiliation with FINRA Enter “N” if the person has no affiliation with the FINRA

TAX ID Enter the client’s social security number or tax identification number without a dash. Use the drop down to indicate if this number is a Social Security number of Tax Identification Number. These are required fields. When opening an IRA use the clients Social Security Number in this field.


D1 - Driver's License OT - Other PP - Passport ST - State IDFT - Foreign Tax ID

PLACE OF ISSUE Enter the two digit state code for the issue place of the government ID

ISSUED Enter the issue date for the government ID

EXPIRES Enter the expiration date for the government ID

ID NUM Enter the government ID number

BIRTH Enter the client’s birthdate if not already populated




ADDL Enter additional address information if needed


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STATE Enter the two digit state code if not already populated


FOREIGN ZIP Foreign ZIP

CITIZEN Two-character country code identifying the country in which the account holder has citizenship. See the NFTA Function for a list of valid codes.

RESIDE Two-character country code identifying the foreign country in which the account holder currently resides. See NFTA Function for a list of valid codes.


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• Enter the Associated Person’s phone number(s) and employment information• Click Next

Screen Explanation:

HOME Client’s home phone number

BUSINESS Client’s business phone number

FAX Client’s fax number

OTHER Client’s other phone number

OCCUP Enter occupation

EMP NAME Enter employer name

Years EMPL Enter number of years employed

PHONE Employer’s phone number


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CITY Employer’s City

STATE Employer’s State

ZIP Employer’s Zip

FOREIGN ZIP Employer’s foreign Zip


RESIDE Two-character country code identifying the foreign country in which the business currently

resides. See NFTA Function for a list of valid codes.

PROV Canadian Province code. Please note the IBD must adhere to proper

provincial registration requirements to hold Canadian accounts.

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Since this is an Individual Retirement Account, select "No" and click Next.

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Complete additional client demographic information.

Screen Explanation:

BUSINESS NATURE Select appropriate designation from the drop down menu.

OCCUPATION Select appropriate designation from the drop down menu.

YEARS EMPLOYED

EMP NAME

EMPLOYERS ADDRESS

EMPLOYERS CITY

EMPLOYERS STATE

EMPLOYERS ZIP

MARITAL STATUS

EDUCATION LEVEL

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HOME OWN/RENT Choose from the drop down menu (OWNS/RENTS)

RETIRED Choose from the drop down menu (YES/NO)

E-MAIL ADDRESS

SECONDARY E-MAIL ADDRESS

Complete SPOUSAL INFORMATION (if applicable) in the same manner as primary account

holder.

Continue with additional account holder information. Complete screen as follows.

DEPENDENTS

INCOME TAX BRACKET

INITIAL TRANSACTION

ESTIMATED VALUE OF INVESTMENT

PLANNED INVESTMENT AMOUNT

ACQUIRED

CORPORATE OFFICER

CLIENT PERSONALLY MET

POLICY OWNER


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The optional ACRE record is used for documenting account relationship management (i.e. referrals or business partner contacts).

At this point, you are ready to click Finish and view the 8 digit account number assigned by BETA.


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Once you have your eight digit account number, you will need to access Network Gateway to complete the following function for IRA Beneficiaries.

A record will need to be created for the IRA account holder as well as any beneficiaries on the account. The following are step-by-step instructions for completing this requirement.

MDRO - Adding Beneficiary Information for IRA accounts

1. Type MDRO space IRA account number and hit enter2. Type ADD in the function field hit enter

3. Type your WHO code4. Type the account owner’s social security # in the TAX-ID field (No Dashes needed)5. Beneficiary Name - Enter the owner’s name (address optional)6. B-DATE field – Enter the owner’s birthdate in the field (01011901 format)

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9. PCT = Percentage – enter the amount each beneficiary will receive in the PCT field (Owner’s willbe 100). The total for each designation must equal 10010. Hit Enter.

Once you’ve entered the Owner’s info go back and repeat the above steps for each beneficiary.If you need to add or update info on a beneficiary after you’ve already exited the MDRO screen, type MDRO space the account number and a “summary” screen will appear with the info that has already been entered. You can tab to the item field and enter the item you wish to change and hit enter. Once in the MDRO screen again type CORR in the function field and your WHO code. You can update any info in RED and then press enter for the info to be saved. If you need to add additional beneficiaries you will want to enter ADD in the function field on the Summary screen and hit enter to get into a blank MDRO screen.

8. DESIG = used to determine the hierarchy of beneficiaries:

• 000 = owner• 001 = primary beneficiary• 002 = contingent beneficiary• 999 = decedent record

7. REL = Relationship – The following are acceptable entries:

• O - for owner or non-spouse beneficiary• S - for spouse of the account holder• Y - If Spouse is 10 years younger than the owner• B – Beneficiary taking distributions of a deceased account holder• F – Beneficiary that has elected the 5 year distribution option

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BENEFICIARY IRAS INSTRUCTIONSFor a Beneficiary IRA there is a slight modification to the above instructions. They are as follows.

o The account owner REL should equal “B” – unless they elected the 5 year option then it is “F”.o BEG-DATE – This date (MMDDYYYY format) will be the Decedent’s (Original IRA account

holders) date of death.


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EXHIBIT B COR CLEARING ACCOUNT CATEGORY CODES

OPENING NEW ACCOUNTS – EXHIBIT B ACCOUNT CATEGORY CODES

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OPENING NEW ACCOUNTS – ADD / UPDATE CONTACT TAB

ADD / UPDATE CONTACT TAB

The Contact sub tab allows users to add and change client address information, phone numbers, and email addresses. The Primary IRS designation represents the information transmitted to the IRS for tax reporting purposes.

Please note the Contact tab represents the mailing address in ACCT for the account. In addition, title/registration lines cannot be modified once the account is established. Please contact [email protected] for any changes to titles and/or registration fields.

Updating Contact Information

• Access the Account Add / Update Contact sub tab• Make any necessary changes• Click on the Apply Changes Icon

Screen Explanation:

NAME LINE Account Registration. See Exhibit A – Account Titles

ADDRESS LINE Address

STATE The two digit state code


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OPENING NEW ACCOUNTS – ADD / UPDATE CONTACT TAB


CNTRY OF CIT. Two-character country code identifying the country in which the account

holder has citizenship. See the NFTA Function for a list of valid codes.

Canadian Province code. Please note the IBD must adhere to proper


Foreign Zip code

Client’s home phone number

Client’s business phone number

Client’s fax number

Client’s other phone number

Client’s primary e-mail address

Client’s secondary e-mail address

FOREIGN ZIP

HOME PHONE

BUSINESS PHONE

FAX

PHONE

OTHER PHONE

E-MAIL ADDRESS SEC.

E-MAIL ADDRESS

NOTES Free form notepad

Client’s phone number

PROV

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OPENING NEW ACCOUNTS – ADD / UPDATE ACCOUNT TAB

ADD / UPDATE ACCOUNT TAB

The Account sub tab allows users to view, add, and amend demographic information concerning the primary account holder or spouse.

Updating Account Information

• Access the Account Add / Update Account sub tab• Make any necessary changes• Click on the Apply Changes Icon

Screen Explanation:

MARITIAL STATUS Marital status of the primary account holder

D – Divorced W – Widow M – Married S – Single

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EDUCATION LEVEL Education attained by the primary account holder

A – High School B – Post Secondary School C – Two-year degree D – College graduate E – Post graduate study F – Advanced degree G – Other

HOME OWN/RENT Indicates whether the primary account holder owns or rents his/her home

O – Own R – Rent

RETIRED Indicates if the primary account holder is retired

TAX ID The client’s social security number or tax identification number

GENDER The gender code on the primary account holder


BIRTHDATE The primary account holder’s birthdate. Actual date of birth must be used for IRA accounts.

BUSINESS NATURE The business nature of the primary account holder

A – Finance B – Manufacturing C – Wholesale D – Retail F – Other

OCCUPATION The occupation of the primary account holder

A – Professional, technical and kindred workers B – Managers, proprietors and public officials C – Craftsmen, and other skilled workers D – Sales, clerical and white collar workers E – Operative and other semi-skilled workers F – Farm related G – Other H - No answer

YEARS EMPLOYED The number of years employed

EMP NAME Primary account holder’s employer name

EMPLOYER ADDRESS Primary account holder’s employer address

RISK TOLERANCE The primary account holder’s risk tolerance

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EMPLOYER STATE Primary account holder’s employer state

EMPLOYER ZIP Primary account holder’s employer zip

SPOUSE BIRTHDATE Birthdate of spouse

SPOUSE NET INCOME Indicates the annual income range for the spouse


SPOUSE BUS NATURE The business nature of the spouse

A – Finance B – Manufacturing C – Wholesale D – Retail F – Other

SPOUSE OCCUPATION The occupation of the spouse

A – Professional, technical and kindred workers B – Managers, proprietors and public officials C – Craftsmen, and other skilled workers D – Sales, clerical and white collar workers E – Operative and other semi-skilled workers F – Farm related G – Other H - No answer

SPOUSE YEARS EMP The number of years employed for the spouse

SPOUSE EMP NAME Spouse’s employer name

SPOUSE EMP ADDRS Spouse’s employer address

SPOUSE EMP CITY Spouse’s employer city

SPOUSE EMP STATE Spouse’s employer state

SPOUSE EMP ZIP Spouse’s employer zip

SPOUSE BUS PHONE Spouse’s business phone

EMPLOYER CITY Primary account holder’s employer city

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OPENING NEW ACCOUNTS – ADD / UPDATE FINANCIAL TAB

ADD / UPDATE FINANCIAL TAB

The Financial sub tab allows users to view, add, and update general financial information related to the account.

Updating Financial Information

• Access the Account Add / Update Financial sub tab• Make any necessary changes• Click on the Apply Changes Icon

Screen Explanation:

INV OBJECTIVE The investment objective

A – CURRENT INCOME F – BALANCEDG – GROWTH AND INCOME H – GROWTHI – MAXIMUM GROWTHJ – SPECULATION

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EST VALUE OF INV Indicates the estimated value of all investments held by the primary account holder and spouse

A – Less than $25,000 B – $25,001 - $100,000 C – $100,001 - $200,000 D – $200,001 - $500,000 E – $500,001 - $1,000,000 F – Over $1,000,000 G – Refuse to Disclose

PLANNED INV AMT Indicates an estimated investment range

A – Less than $25,000 B – $25,001 - $100,000 C – $100,001 - $200,000 D – $200,001 - $500,000 E – $500,001 - $1,000,000 F – Over $1,000,000 G – Refuse to Disclose





LIQ NET WORTH One-character code indicates the estimated liquid net worth for this account. This field is required. Valid codes appear below:

A B C D E F G H

Under $25,000 $25,001 to $50,000 $50,001 to $100,000 $100,001 to $200,000 $200,001 to $500,000 $500,001 to $1,000,000 $1,000,001 to $3,000,000 Over $3,000,000

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INV EXP STOCK Indicates the length of investment experience in stocks

A – Less Than 1 Year B – 1-5 Years C – Over 5 Years

INV EXP OPTIONS Indicates the length of investment experience in options


INV EXP MF Indicates the length of investment experience in mutual funds


INV EXP INS/AN Indicates the length of investment experience in insurance/annuities


OPTION INV OBJ. Identifies the client’s investment objective for investing in options

OPT PROSP DATE SNT Identifies the date on which the option prospectus was sent to the customer

FRST OPT TR DATE

DEPENDENTS

INCOME TAX BR

Identifies the first date an option trade was executed for the account

Number of dependents for the primary account holder

Tax bracket of the primary account holder

INV EXP BONDS Indicates the length of investment experience in bonds


LIQ NEEDS Indicates the liquidity needs for the account

TIME HORIZON Indicates the Time Frame for Liquidity Needs for the account

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OPENING NEW ACCOUNTS – ADD / UPDATE DETAILS TAB

ADD / UPDATE DETAILS TAB

The Details sub tab allows users to add, view and amend information such as cash and margin standing instructions, and discount, referral, and money market fund information, etc.

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DIV STANDING INS. The Dividend Standing Instruction Code. Use one of the following: (an IRA account can only select “1”)


FOREIGN STAND INS. Foreign account cash standing instruction codes are used to designate the disposition of stock and money on cash accounts. The default is 4C. Please contact the New Accounts department to adjust the account if a coding other than 4C is required.





Updating Detail Information

• Access the Account Add / Update Detail sub tab• Make any necessary changes• Click on the Apply Changes Icon

Screen Explanation:

MMF

MMF SWEEP


Automatic money market fund sweep indicator used to identify customer participation in the automatic sweep program. An X – Sweep Purchases and Sales is required in this field if the MMF field is coded. Cash Standing Instructions must be 4C.

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A – Held by Firm Director B – Held by Firm Board Member C – Firm Inventory for short sale reporting D – Held by a Broker Dealer G – Repurchase Accounts M – Held by MAP Customers (Material Associated Persons) N – Firm Defined P – Accounts held by politically exposed persons (e.g. diplomat, govn official) R – Restricted from MSRB Reporting S – Accounts are restricted from both MSRB and TRACE reporting U – Held by Employees, Reps, Voting Stockholders (and allied family members) V – Beneficial to Accounts coded U W – Held by Employees, Reps, Voting Stockholders (and allied family members) of Other Securities firms

X – Beneficial to Accounts Coded W Y – Held by security department employees, insurance companies, RIA firms,





EQTY DISC. MAX Percent of commission discount to be given on equity trades.

BOND DISC. MAX Percent of commission discount to be given on bond trades.



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A – Dividends Reinvested For New Trades & R&D Activity C – Cash Dividends Paid For New Trades & R&D Activity unless the Security is coded for Reinvest Dividend N – Cash Dividends Paid for New Trades and R&D Activity R – Dividends Reinvested For New Trades and R&D Activity unless the

PRINCIPAL Security is coded for Cash Dividend

Select X – Principal Payments Directed into Customer Free Credit Balance if a direct principal payment (return of capital) should be added to the credit balance and be held in the account rather than be paid out to the client. This is only required if your Dividend Standing Instructions are set up to mail out dividend proceeds.

INITIAL TRANS

REFERRAL

A – Firm B – Broker C – Professional D – Other

ACQUIRED Indicates how the primary account was acquired

CORPORATE OFFICER Indicates if the account is held by a corporate officer

CLIENT PER. MET Indicates that the customer has been met in person

POLICY OWNER Indicates if the customer has purchased an insurance and annuities product

EMP CLASS CODE Employee classification code (firm defined)

Dollar amount of the initial transaction

Indicates how the customer was referred

INST ACCOUNT Indicates how the primary account was acquired

The names appearing in these fields are used as cross-references for accessing the account

ALPHA KEYS

A – Walk inB – Phone inC – Known PersonallyD – Print advertisementE – TV advertisementF – Radio AnnouncementG – Direct MailH – Telephone solicitationI – Specific promotionJ – Other

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OPENING NEW ACCOUNTS – ADD / UPDATE SPECIAL HANDLING TAB

ADD / UPDATE SPECIAL HANDLING TAB

The Special Handling sub tab lets users add, view, and amend special handling and mailing instructions for an account. Special instructions that can be entered for accounts include special registration instructions, delivery and pickup instructions, and addresses to which statements and dividend checks are directed.

Updating Special Handling Information

• Access the Account Add / Update Special Handling sub tab• Make any necessary changes• Click on the Apply Changes Icon

Screen Explanation:

SPEC HANDLING REC Open special handling records

NAME Name of the alternate recipient

ADDRESS Address of the alternate recipient

COUNTRY Country of the alternate recipient


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12/2015

OPENING NEW ACCOUNTS – ADD / UPDATE SPECIAL HANDLING TAB

CITY City of the alternate recipient

STATE State of the alternate recipient

FOREIGN ZIP Foreign Zip of the alternate recipient

DUP CONFIRMS Indicates whether duplicate confirms will be sent to this recipient

CONFIRM COPIES Used to request additional copies of duplicate confirms. This is in addition to the one copy created by setting up a duplicate confirm record.

DUP STATEMENTS Indicates whether duplicate statements will be sent to this recipient

STATEMENTS COPIES Used to request additional copies of duplicate statements. This is in addition to the one copy created by setting up a duplicate statement record.

DUP 1099 SWITCH Indicates whether duplicate 1099 statements will be sent to this recipient

DUP 1099 COPIES Used to request additional copies of duplicate 1099 statements. This is in addition to the one copy created by setting up a duplicate 1099 switch record.

ALT PROXY CODE Indicates whether alternate proxy information will be sent to this recipient

CUSTOMER CHECK Indicates whether the name and address for this interested party will be used on customer checks

MAIL DIVERT CODE This field is not currently in use

MAIL INDICATOR Identifies an address as internal or external

TCKL MAIL SWITCH Indicates whether this interested party's name and address will be sent to the print vendor to be used as the mailing address for check orders

WRAP SWITCH Indicates whether this interested party's name and address will be the mailing address for WRAP accounts

STATE REG CODE Indicates if the address on the interested party record is the primary residence for the customer

NOTES Free form notepad

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OPENING NEW ACCOUNTS – ADD / UPDATE DOCUMENTS TAB

ADD / UPDATE DOCUMENTS TAB

The Account Documents sub tab (DOCA) lets you view, add, and update required or received customer account documents. This update screen also allows you to void or change the status of account documents. The Account Documents screen displays all documents required or on file for an account. The system automatically selects forms based on the account category (e.g. individual, joint) and transaction level (e.g. cash, margin) entered during the account add process or by using the Account Details update screen.

Updating Documents Information

• Access the Account Add / Update Documents sub tab• Make any necessary changes• Click on the Apply Changes Icon

Screen Explanation:

DOCUMENT RECORDS Documents coded on the account

ADD NEW Used to add an additional document to the account

FORM CODE List of available documents to be coded on an account

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OPENING NEW ACCOUNTS – ADD / UPDATE DOCUMENTS TAB

DOC STATUS CODE Identifies the status of a form

B – Form has been received with errors & returned to the branch C – Form has been received and sent to Compliance for Approval P – Form has been Purged from Account R – Form is Required and has been sent to the customer for completion X – Form has been received and archived O – Form is Overdue D – Form is Delinquent

DATE SIGNED Date the form was signed

LAST LETTER ID This field is not currently in use

PRIME BROKER NO This field is not currently in use

DOC REQ NO This field is not currently in use

LAST STATUS CHG Date the status was last adjusted

REEL NO This field is not currently in use

BEGIN FRAME This field is not currently in use

END FRAME This field is not currently in use

WHO Initials of the person who last changed the status of the form

TERMINAL ID Terminal ID of the person who last changed the status of the form

CHANGE DATE Date the record was last adjusted

NOTES This is a free form field in which you can record notes that may pertain to the document

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OPENING NEW ACCOUNTS – ADD / UPDATE - RELATIONSHIPS TAB

The Relationships sub tab is used only if needed to document referral agreements with third parties associated to the account.

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OPENING NEW ACCOUNTS – ADD/UPDATE ASSOCIATED PEOPLE TAB

ADD / UPDATE ASSOCIATED PEOPLE TAB

The Associated People screen allows you to change owner/associated people information entered during the account open process or to add new owner/associated people records, in accordance with Anti-Money Laundering regulations.

Updating Associated People Information

• Access the Account Add / Update Associated People sub tab• Make any necessary changes• Click on the Apply Changes Icon

Screen Explanation:

ADD NEW Used to add an additional demographic record

ASSOCIATED PEOPLE List of associated people records

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OPENING NEW ACCOUNTS – ADD / UPDATE ASSOCIATED PEOPLE TAB




Examples: • Individual Accounts – Primary person would be a “P”• Joint Accounts – Primary owner is a “P”, All secondary owners are “O”.• Custodial accounts for minors – The Custodian is the primary and coded “P”,


• Corporation – Primary is the Corporation and coded “P”, all authorized personsfor the corporation are coded “A” as an associated person.





FINRA AFFIL Enter “Y” if the person has any affiliation with FINRA Enter “N” if the person has no affiliation with the FINRA

BRR LETTER Date on which the last BRR Reconfirmation Letter was sent to the owner(s) and any associated person(s) for the demographic record

TAX ID Enter the client’s social security number or tax identification number without a dash. Use the drop down to indicate if this number is a Social Security number of Tax Identification Number. These are required fields. When opening a COR IRA use the clients Social Security Number in this field.


D1 - Driver's License OT - Other PP - PassportST - State IDFT - Foreign Tax ID

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PLACE OF ISSUE

ISSUED

EXPIRES

ID NUM

BIRTH

FIRST

MIDDLE

LAST

ADDL

ADDR 1

ADDR 2

CITY

STATE

ZIP + 4

VERIFY

FOREIGN ZIP

PROV

RESIDE

HOME PHONE

BUSINESS PHONE

FAX PHONE

OTHER PHONE

OCCUP

EMP NAME

Years EMPL

Enter the two digit state code for the issue place of the government ID

Enter the issue date for the government ID

Enter the expiration date for the government ID

Enter the government ID number

Enter the client’s birthdate

Enter the client’s first name

Enter the client’s middle name

Enter the client’s last name

Enter additional address information if needed

Enter the client’s address

Enter the client’s address

Enter the City if not already populated

Enter the two digit state code

Enter the zip code

Verify address

Foreign ZIP

Canadian Province code. Please note the IBD must adhere to proper provincial

registration requirements to hold Canadian accounts.

Two-character country code identifying the country in which the account holder has

citizenship. See the NFTA Function for a list of valid codes.

Two-character country code identifying the foreign country in which the account holder

currently resides. See NFTA Function for a list of valid codes.

Home phone number

Business phone number

Fax number

Other phone number

Enter occupation

Enter employer name

Enter number of years employed

CITIZEN

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PHONE Employer’s phone number



CITY

STATE

ZIP

VERIFY

FOREIGN ZIP

PROV

Employer’s City

Employer’s State

Employer’s Zip

Verify address

Employer’s foreign Zip

Canadian Province code. Please note the IBD must adhere to proper provincial

registration requirements to hold Canadian accounts.

Two-character country code identifying the foreign country in which the

business currently resides. See NFTA Function for a list of valid codes.

RESIDE

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OPENING NEW ACCOUNTS – BORA BACK OFFICE FUNCTION

BORA FUNCTION

The BORA Function is used to open new accounts at the firm level.

ACCESS PROCEDURE

BORA Type BORA, press ENTER.

The BORA screen will appear with ADD displayed in the FUNC field.

Screen Explanation:

NAME AND ADDRESS Complete title and street address that should appear on the account. F Primary Clients First Name M L 1-4A1A2

Primary Clients Middle Name Primary Clients Last Name Account Registration. See Exhibit A – Account Titles Address Address

CITY Client’s city or residence. This is a required field.

ZIP Zip code and zip + 4.

RESIDENCE Two-character country code identifying the foreign country in which the account holder currently resides. See NFTA Function for a list of valid codes.

BORA 03/26/08 10:10:10 016/001 FUNC ADD << BRANCH OPEN RETAIL ACCOUNT SCREEN>> ---NAME AND MAILING ADDRESS------- SUB ___ F ______________________________ M ______________________________ L ______________________________ 1 1 ______________________________ 2 2 ______________________________ 3 3 ______________________________ 4 4 ______________________________ 5 A1 ______________________________ 6 A2 ______________________________ CITY _______________ ST __ ZIP _____ - ____ NAME-LINES _ N-NUM ____ NETW _ REP# ____ SS/TIN# ___________ IRS _ _ CSI __ DIV _ PRIN _ RIN _ CRINT _ ACTA _ MMF ___ SWP _ LEG/MAILADR _ ADDL PEOPLE _ ACCT-CATEGORY ___ TRANS-LEVEL ___ NASD-CLASS _ POLICY-OWNER _ AVG _ BIRTHDATE ________ GENDER _ INV-OBJ _ ANNUAL-INCOME _ NET-WORTH _ LIQWORTH _ PHONE#:HOME ____________ BUS ____________ FAX ____________ OTHER ____________ IRAS: RPTYPE _____ P/S _ XREF ________ OPTIONAL KEY1 ____________________ ---NAME KEYS--2)LAST ____________________ FIRST MI ____________________ ---NAME KEYS--3)CORPORATE ____________________

STOCK BOND OPTION BROK ____ OLD-ACCOUNT# ____________ __ % __ % __ %

COMPLETE SCREEN TO ADD F1-HELP F2-DOIT F5-SPLITS F10-BMEN

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CNTRY Two-character country code identifying the country in which the account holder has citizenship. See the NFTA Function for a list of valid codes.


PROV

The number of lines that display the client name(s) on the account that are listed before the address. This is a required field.

NETW System generated field. Enter P

REP# The four-character account executive code assigned to the account.

SS/TIN# Enter the client’s social security number (000-00-0000) or tax identification number (00-0000000). This is a required field. When opening a COR CLEARING IRA use the client's tax ID number.

IRS Line number (1, 2 or 3) of client name whose social security or tax identification number is being used to open account. This is a required field.

CSI Cash standing instruction codes are used to designate the disposition of stock and money on cash accounts. The default is 4C. Please contact the New Accounts department to adjust the account if a coding other than 4C is required. Standing instruction codes consist of two characters:

The first character is a numeric code designating the disposition of securities:




DIV Enter the Dividend Standing Instruction Code. Use one of the following: (an IRAaccount can only select “1”)

1 – HOLD FUNDS in the account 3 – Mail dividends/interest weekly 4 – Mail dividends/interest semi-monthly 5 – Mail dividends/interest monthly

PRIN This field should be left blank.

NAME-LINES

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RIN Dividend reinvestment code. Alphabetic code that indicates whether dividends from a dividend reinvestment eligible security should be reinvested. If no code is entered at the time an account is opened, the system will default to N. Valid codes are:

A – Dividends will be reinvested for all new trades and receive and delivery activity

C – Most commonly used-Cash dividends will be paid for all new trades and receive and delivery activity unless the security is coded for reinvestment on RDIV

R – Most Commonly used-Dividends will be reinvested for all new trades and receive and delivery activity unless the security is coded for cash dividends on RDIV

N – Dividends will not be reinvested for this account; cash dividends will be paid for all new trades and receive and delivery activity

MMF

SWP Automatic money market fund sweep indicator used to identify customer participation in the automatic sweep program. An X is required in this field if the MMF field is coded cash standing instructions must be 4C.

LEG/MAILADT Enter “Y” if this is the primary owner's legal mailing address

ADDL People Enter the number of persons associated with this account (this will add the number of DAML records needed.

ACCT-CATEGORY Enter the appropriate three-character account category code. Please see Exhibit B – Account Category Codes, at the end of this chapter for a complete list of category codes.

TRANS-LEVEL Enter the appropriate transaction level code: IRA’s can only select 001 or 003

001-Cash002-Cash/Margin003-Cash/Option004-Cash/Margin/Option


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NASD-CLAS If the account is NASD classified, enter the classification code: A – Held by Firm Director B – Held by Firm Board Member C – Firm Inventory for short sale reporting D – Held by a Broker Dealer G – Repurchase Accounts M – Held by MAP Customers (Material Associated Persons) N – Firm Defined P – Accounts held by politically exposed persons (e.g. diplomat, govn official) R – Restricted from MSRB Reporting S – Accounts are restricted from both MSRB and TRACE reporting U – Held by Employees, Reps, Voting Stockholders (and allied family members) V – Beneficial to Accounts coded U W – Held by Employees, Reps, Voting Stockholders (and allied family members) of Other Securities firms X – Beneficial to Accounts Coded W Y – Held by security department employees, insurance companies, RIA firms,


Field not currently in use

Place an "X" in this field. Used to hard code the account for average priced trades.

POLICY-OWNER

AVG

BIRTHDATE Entering an E in the first field indicates that the birthdate that follows is an estimate only. Enter the client’s birthdate in the second field as MMDDCCYY.

GENDER Enter the appropriate gender code F (female), M (male), or N (not applicable). This is a required field. Note: For accounts opened using the name of a corporation and Institutional Accounts as the first alpha key, this field must be coded as N (not applicable).

INV-OBJ Enter the investment objective.

A CURRENT INCOME F BALANCEDG GROWTH AND INCOME H GROWTHI MAXIMUM GROWTH J SPECULATION

ANNUAL-INCOME One character code indicates the annual income range for this account. This field is required. Valid codes appear below:


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NET-WORTH One-character code indicates the estimated net worth for this account. This field is required. Valid codes appear below:


LIQWORTH One-character code indicates the estimated liquid net worth for this account. This field is required. Valid codes appear below:


PHONE # Enter all numbers using the following format: 999-999-9999

HOME Client’s home phone number

BUS Client’s business phone number

FAX Client’s fax number

OTHER Client’s other phone number

RTYPE Retirement Plan Type Code. Enter one of the following codes below:

BN – Beneficiary IRA CK – INDV 401KCP – MPP CS – PSPED – ESA Coverdell IR – Traditional IRA IS – Sep IRA RH – Roth IRA RO – Rollover IRA XI – Simple IRA ZH – 403b (7)

P/S Retirement Plan Primary. When opening a COR CLEARING IRA, the following code must be used.

P – Primary Account

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NAME KEYS Field heading for the following three lines. The names appearing in these fields are used as cross-references for accessing the account.

1) LAST___FIRST MI Primary last name, first name and middle initial used to access the account. At least thefirst name key line (LAST and FIRST MI) is required. If the CORPORATE name key line is completed, the name key lines are not required.

2) LAST___FIRST MI Secondary last name, first name and middle initial used to access the account.

3) CORPORATE Corporate name used as the third name to access the account. If the first and second name-key lines are completed in addition to this field, the CORPORATE line will take precedence and remain the first alpha key on the account; the first and second name-key lines will become the second and third alpha keys respectively.

OLD-ACCOUNT# Up to 12-digit account number used on the previous system.

COMMISSION-DISC Field heading for the following three fields.

STOCK Percent of commission discount to be given on equity trades.

BOND Percent of commission discount to be given on bond trades.

OPTION Percent of commission discount to be given on option trades.

After all fields have been completed, press ENTER. If all information is displayed properly, type DOIT or press F2 to approve. Complete the DAML Screen to obtain your account number. Record this permanent account number for future reference. If the account number does not appear, carefully check all fields for any plus (+++) signs, which indicate that information was not entered in a format that is acceptable to the system. Re-type correct information over these plus signs and press the ENTER key again. Continue to correct information and press ENTER until the account information disappears from the screen and only the original screen mask remains. If you need assistance when opening an account using BORA, please contact your Client Services Representative or COR New Accounts Department.

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OPENING NEW ACCOUNTS – DAML BACK OFFICE FUNCTION

DAML FUNCTION

The DAML Function is used to add Owner or Associated Person Information which will be used for CIP, MIS, OFAC checks and 17A-3 required communications reports

The DAML screen will appear once you have completed the BORA setup. Some fields will be pre-populated using information from the setup in BORA if this is the primary address and the LEG/MAILADR was coded “Y”.

DAML Summary Screen

DAML 12345678 04/04/03 10:10:10 016/001 FUNC LAST WHO ITEM << ASSOC OR OWNER DEMOGRAPHICS >> SUB 001 INQUIRY A NAME _ ______________________________ TAXID ___________ ITM NAME & LEGAL ADDRESS INFORMATION ID INFORMATION 01 FIRST JOHN GOVT ID LAST DOE PLACE WI ISSUE 01/01/2002 ADDR 1 123 BIRCH LN EXP 01/01/2010 ADDR 2 BDATE E 01/01/1945 PRIM/OWNER/ASSOC P CITY MILWAUKEE CITIZEN RESIDE SSN 123-45-6789 ST WI ZIP 53202 3954 F-ZIP BRR LETTER

F4=SUMMARY, F7=BACK, F8=FRWD

Access Procedures

DAML 12345678 Type DAML, space once, type the eight-digit account number, press ENTER

The summary screen will provide a snapshot of the information for each person associated with this account. A sample of the DAML screen is shown above

To edit information you can hit F4 for the detail screen or follow the procedures below.

FUNC CORR

WHO Your three digit security code

ITEM Enter the item number (ITM) that corresponds to the person whose information that will be changed. Enter. The following screen will appear

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DAML Detail Screen DAML 12345678 04/04/03 10:10:10 016/001 FUNC ADD WHO << ASSOC OR OWNER DEMOGRAPHICS >> SUB 001 INQUIRY A NAME _ ______________________________ TAXID ___________ ACCOUNT 12345678 REP AB AB01 JOHN DOE JT TEN NAME & LEGAL ADDRESS & DEMOGRAPHICS INFO TERMINATE _ PRIM/OWN/ASSOC P CUST TYPE INDV NAME TYPE I SUP CLIENT VERIFY N SUP BRR LTR Y FIRST JOHN__________________________ MIDDLE R_____________________________ LAST DOE___________________________ ADDL ______________________________ ADDR 1 123 BIRCH LN__________________ ADDR 2 ______________________________ CITY MILWAUKEE_____________________ ST WI ZIP 53202 ____ USE-Z4 _ F ZIP __________ CITIZEN US RESIDE US PROV __ OFAC WHO EMAIL ______________________________________________________________________ SS#/TIN 123456789__ B-DATE E 01011945__ GOVT ID __ _________________________ PLACE __ ISSUE __________ EXP __________ H: _____ 414-555-1234___ B: _____ 414-555-5678___ EXT 999__ MET IN PERSON __ O: _____ _______________ F: _____ _______________ NASD AFFIL _ POI __ EMP NAME ABC CORP______________________ OCCUP _ ADDR1 345 MAPLE AVE_________________ ADDR2 ______________________________ CITY MILWAUKEE_____________________ ST WI ZIP 53202 ____ USE-Z4 _ F-ZIP __________ RESIDE US PROV __ PHONE _____ 414-555-5678___ BUS NATURE MANUFACTURING_________________ YEARS EMPL 20 SRC OF FUNDS _ BRR LETTER __________ UPDATE WHO TERM

F4=SUMMARY, F7=BACK, F8=FRWD

FUNC Enter CORR

WHO Enter your three digit security code

PRIM/OWN/ASSOC Enter one of the following codes which represents the relationship to the account.

CODES P – Primary Owner O – Secondary Owner A – Associated Person

Examples: • Individual Accounts – Primary person would be a “P”• Joint Accounts – Primary owner is a “P”, All secondary owners are

“O”.• Custodial accounts for minors – The Custodian is the primary and

coded “P”, The minor is the associated person until the age of majorityand coded “A” as an associated person.

• Corporation – Primary is the Corporation and coded “P”, all authorizedpersons for the corporation are coded “A” as an associated person.


CUST TYPE Enter INDV (Individual) or NONI (Non Individual)

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ST Enter the two digit state code if not already populated


USE Z4

F ZIP

CITIZEN

RESIDE

PROV

OFAC

SS#/TIN

B-Date

GOVT ID

PLACE

ISSUE

EXP

H:

O:

NASD AFFIL

Y – YES

N – NO

Foreign ZIP

Enter the 2 digit Citizenship Code

Enter the 2 digit Residence Code

Canadian Province code. Please note the IBD must adhere to proper


This field is used to identify whether the individual has passed OFAC

(Office of Foreign Asset Control Verification.)

Enter the customer's tax identification number or social security number.

Enter the client’s birthdate if not already populated

Type the two digit government ID code followed by the ID number

D1 - Driver's License

OT - Other

PP - Passport

FT - Foreign

Enter the two digit state code for the issue place of the government ID

Enter the issue date for the government ID

Enter the expiration date for the government ID

TAB-Enter the home number including dashes

TAB-Option Phone Number

Enter “Y” if the person has any affiliation with FINRA

Enter “N” if the person has no affiliation with FINRA

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POI Person of Political Interest Code Blank –No interest CE - Chief Financial Officer CF - Finance Officer CO - Chief Operations Officer OO- Other Officer or Director SH - 10% Shareholder

EMP NAME Enter employer

OCCUP Enter occupation



CITY,ST,ZIP Employer’s City, STATE and ZIP

Use-Z4 Y – YES N – NO

RESIDE Enter the 2 digit Residence Code for employer

PROV

Phone Enter Employer’s phone number

Bus Nature Enter the business nature of employer

Years EMPL Enter number of years employed

Type Enter in DAML, when completed the word “DONE” will appear in the bottom left hand corner of the screen. If “DONE” doesn’t appear, look for +++ and correct the field(s).


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OPENING NEW ACCOUNTS – DOCA BACK OFFICE FUNCTION

THE DOCA FUNCTION

The DOCA Function is used to code the receipt of customer account documentation and to display the status of those documents that are either required or received. DOCA is a central document file maintained by the firm. NOTE: COR Clearing New Account Department codes and maintains the status of all margin agreements and TOD forms.

ACCESS PROCEDURE

DOCA 12345678 Type DOCA, space once, type the eight-digit account number, press ENTER.

FUNC ADD

WHO Enter your Individual Security (three digit) code

CODE The document code will automatically populate in DOCA when the account is opened through BORA. The ACCT Category Code in BORA assigns the proper documents for the account types.

DOCA 00345678 11/01/99 14:05:31 016/001 FUNC LAST WHO ITEM __ << ACCOUNT DOCUMENT INQ/UPDT >> SUB 001 REP: AB01 TIN 546-36-7587 JOHN BREWSTER CTRY PROV DSCL DSCR TEFRA 123 WOODLAND WAY NOID MSI MMF SWP OIO IO BROOKLYN NY 59458 CLS EMP INST DOC-RST CAT LVL -----DOCUMENT-------REQ-STATUS DATE-REEL---FRAME-------DATE---LETR-PRIMBRKR-WHO CODE SHORTNAME BEGIN END SIGNED SENT 1 PRIM PRIM BRKR 001 X 01/02/99 123 10 11 23456789 ABC NOTES: 2 JARS JOINT WROS 001 X 02/01/99 128 124 125ABC NOTES: 3 ORGN ORGAN ACCT 001 B 05/05/99ABC NOTES: MISSING SIGNATUREPON 4 PART PART ACCT 001 X 06/24/99 184 125 147 09/09/99ABC NOTES: 5 PRW2 PWR ATTY 002 C 06/06/99KAS NOTES: PLEASE VERIFY FOR APPROVALKAS 6 SOLP SOLE PROP 001 X 07/07/99 200 14 15ABC NOTES:

1 HELP 2 MENU 3 HIST 4 ADDR 7 BACK 8 FRWD 10 BMEN 11 ACTV 12 SWAP E ND OF FILE

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OPENING NEW ACCOUNTS – DOCA BACK OFFICE FUNCTION

REQ STATUS “R” - Form is required and sent to client for approval “X” - to code the document received. “B” - if form has been received with errors and returned to Branch/Rep “C” - if form has been received and sent to compliance for approval “O” - Overdue (time frame dependent on form type. “D” - Delinquent (time frame dependent on document type)

Note: When the documents have been coded received (COW9), the account status will reflect “not subject to backup withholding”.

NOTES This is a free form field in which you can record notes that may pertain to the document.

BEGIN END Not used

SIGNED SENT Not used

DOCA Sub-Screens

There are four DOCA sub-screens that may be accessed by pressing the [PF] keys at the top of your keyboard. A listing of the sub-screens appears at the bottom of the main DOCA Screen - 1 HELP, 2 MENU, 3 HIST, 4 ADDR. One of the most useful sub-screens is the ACCOUNT DOCUMENT HISTORY screen (3 HIST), which includes previous requests and a history of multi-forms (more than one form) received for a particular document name. Ex: Letter Of Authority, IRA Distribution form.

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OPENING NEW ACCOUNTS – BACT BACK OFFICE FUNCTION

BACT FUNCTION

The BACT Function displays customer account information from ACCT (Account Master). The firm may update customer information on the BACT screen, which will in turn update ACCT. Account demographic information, such as birthdate, annual income, gender and net-worth, can also be added and updated on this screen.

ACCESS PROCEDURE

The BACT screen can be accessed from a blank screen by account number, Rep code, or tax identification number as follows:

BACT 12345678 Type BACT, space once, type the eight digit account number, press ENTER

Or

BACT T-9990001234 Type BACT, space once, type T-, then the nine-digit social security or tax identification number, press ENTER.

Or

BACT R-AB01 Type BACT, space once, type R-, then the four-digit Rep code, press ENTER

To page through accounts for this Account Executive in account number order, press ENTER.

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A sample of the BACT screen appears below.

BACT A-12345678 01/01/99 10:10:10 016/001 FUNC FRWD << BRANCH CUSTOMER ACCOUNT SCREEN >> SUB 001

AB01 1234-5678 SUB 001 FRM 999CSI 4C MMF _ TAXPAYER-ID 123-44-5678DIV 1 SWEEP _ X

JOHN ALAN SMITH ABIGAIL E SMITHJTWROS123 MAIN STREET PRIN _ CHECKS WITHHOLD-DT

RIN N CSH-DV NAME-LINES 3 IRS 1 2GEORGETOWN PA 11203 - 2222 MSI CSH-O RESIDENCE

USE Z4INVEST-OBJ B BIRTHDATE E 01/15/1949 LAST-ACTIVITY 12/98 OPEN-DATE 01/01/84 ANNUAL-INC E GENDER M LAST-STATEMENT 12/98 CHG-DATE 05/22/98 NET-WORTH C NASD-CLASS OLD-ACCT# 0112345 PURGE-IND XINSTITUTION J POLICYOWNER _ OPT-OBJ 2 OPT-EXP 5 PROD CLS ____BKBR MANGD ORG BNK PROM ____ BKMMF __ STMTCODE C 1234567890 OPTIO ------PHONE------- -----NAME-KEYS------ SPLIT-A (N) _ COMM-DISC% SCHED HOME 350/908-1234 SMITH JOHN ALAN SPLIT-B (N) _ STOCKS __ 01 BUSN ____________ SMITH ABIGAIL E SPLIT-C (N) _ BONDS __ 01 FAX ____________ ____________________ ACTSTAT _ OPTNS __ 01 OTHR ____________ ____________________ MAN# POSTGMAIL:1 _ 2 _ 3 _ 4 _ 5 _ 6 _ 7 _ AVG X BROKR# 2001 DISCLOSE:Y NET ELIG MGTGP-NLSL IPO-YES

ENTER TO CONTINUE. F1=HELP F6=DEMO F7=BACK F8=FRWD F10=BMEN

Screen Explanation:

FUNC FRWD - Press ENTER to view other accounts that match the interrogated Account, Executive code (REP), or social security number.

LAST - Last possible account in the file to match the interrogated name or Tax ID number.

CORR - To make changes to the information in BACT, Type CORR over FRWD or LAST, tab to the field(s) that needs to be changed, type over the existing information, press ENTER. *Note: The cursor will only go to the fields that can be updated.

AB01 Four character Account Executive Code. This field cannot be updated.

1234-5678 Customer Account Number. This field cannot be updated.

SUB FIRM subsidiary number. All firms clearing through COR Clearing will be assigned separate sub numbers for security and tax reporting purposes. This field cannot be updated.

FRM FIRM number. All firms clearing through COR Clearing will have number 016 displayed in the FRM field. This field cannot be updated.

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CSI The two character alpha-numeric standing instruction code for the cash account. The default is 4C. Please contact the New Accounts department to adjust the account if a coding other than 4C is required. The first code is a numeric code designating the disposition of stock:

The second code is an alphabetic code designating the disposition of funds that are credited to the account from the sale, tender, redemption etc. of securities:

A - Pay net credit balances C - Hold all balances in account

*Note: All IRA accounts must be coded 4C.

MMF Money Market Fund code assigned COR Insured Deposit Fund (DLD) is the only option. Should the client opt out of the Money Market Fund, requests should be sent to [email protected].

TAXPAYER -ID Client’s Taxpayer ID or Social Security number. Tax identification numbers appear as 00-0000000, social security numbers as 000-00-0000. *Note: Changes to the taxpayer ID field cannot be made using the BACT Function. Notify [email protected] for any changes for any changes to the TIN.

DIV Dividend Standing Instruction Code. Numeric code that indicates disposition of dividends/interest credited to the client’s account.

Valid codes are: 1 - Hold dividends interest in the account 3 -Mail dividends interest weekly 4. Mail dividends interest semi-monthly5 - Mail dividends interest monthly

Note: The total must be more than $10.00 for a dividend check to be mailed.

SWEEP Automatic money market sweep. In order for an account to be coded for money market sweep, the Cash Standing Instructions must be C. An X in this field indicating that settled credit balances will be swept into the money market fund and the money market will automatically be liquidated to cover any settled debits.

W9 An X in this field indicates that Form W-9 is on file. An R in this field indicates that Form W-9 is required. This field can only be updated by coding the COW9 in DOCA

PRIN Leave this field blank.

1 - Register in customer name and mail to customer4 - Register in street name and hold in account (SEG)

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CHECKS An X in this field indicates the customer has check writing privileges on the money market fund. This field cannot be updated.

WITHHOLD-DT Date from which funds have been withheld due to W-9 form not being submitted. This field cannot be updated.

RIN Dividend reinvestment code. Alphabetic code that indicates whether dividends from a dividend reinvest eligible security should be reinvested. If no code is entered at the time an account is opened, the system will default to N.

Valid codes are as follows:

A - Dividends will be reinvested for all new trades and receive and delivery activity. C - Cash dividends will be paid for all new trades and receive and delivery activity, unless the security is coded for reinvestment on RDIV. R - Dividends will be reinvested for all new trades and receive and delivery activity, unless the security is coded for cash dividends on RDIV. N - Dividends will not be reinvested for this account; cash dividends will be paid for all new trades and receive and delivery activity.

CSH-DV An X in this field indicates that the customer has requested monthly money market fund distributions to be paid in cash rather than reinvested into additional shares. This field cannot be updated.

NAME-LINES Number of name and address lines that display the name or names on the account. This field cannot be updated.

IRS IRS reporting field. This field contains the line number of the name associated with the taxpayer ID number. This field cannot be updated.

MSI Margin Standing Instruction Code or Retirement Code. For margin accounts, this field will display the standing instruction code indicating the disposition of securities and money. (See CSI field explanation for a listing of these codes.) For retirement accounts, this field will display the retirement code indicating a retirement account. Valid retirement code is:

IR- COR Retirement Plan

*This field cannot be updated in BACT.

CASH-O Cash account only field. An X in this field indicates that the system should sweep only the cash and special product accounts.

RESIDENCE Country Code. This alphabetic code is used to determine non-resident withholding requirements. This field cannot be updated.

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INVEST-OBJ Indicates the investment objective code of the account.

Valid codes are:

A – Current Income F – Balanced G – Growth and Income H – Growth I – Maximum Growth J – Speculation

BIRTHDATE The birthdate of the customer, entered as MM/DD/CCYY.

LAST-ACTIVITY The date of the last activity for this account. This field cannot be updated.

OPEN-DATE The date the account was opened. This field cannot be updated.

ANNUAL - INC A one character code indicates the annual income range of the customer.

Valid codes are:


GENDER A one-character code indicates the gender of the account holder.

Valid codes are:

F - Female M - Male N - Not applicable

LAST-STATEMENT Date that the last statement was mailed to the customer. This field is automatically updated by the system each month.

CHG-DATE Date of the last change to this account.

NET WORTH One character code Indicates the net worth range for the customer.

Valid codes are:


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NASD-CLASS Used for employee account or employee related account.

A – Held by Firm Director B – Held by Firm Board Member C – Firm Inventory for short sale reporting D – Held by a Broker Dealer G – Repurchase Accounts M – Held by MAP Customers (Material Associated Persons) N – Firm Defined P – Accounts held by politically exposed persons (e.g. diplomat, govn official) R – Restricted from MSRB Reporting S – Accounts are restricted from both MSRB and TRACE reporting U – Held by Employees, Reps, Voting Stockholders (and allied family members) V – Beneficial to Accounts coded U W – Held by Employees, Reps, Voting Stockholders (and allied family members) of Other Securities firms X – Beneficial to Accounts Coded W Y – Held by security department employees, insurance companies, RIA firms,


OLD-ACCT# Former account number that may be used to access an account. This account number is no longer valid for trading in the present system.

INSTITUTION Type of account

POLICYOWNER This field is not used at this time.

PARENT-ACCT# Primary or parent account number used to group related accounts for mailing purposes. This field cannot be updated.

PHONE Field heading for the following four fields:

HOME Client’s home telephone number, enter as 999-999-9999 BUSN Client’s business telephone number, enter as 999-999-9999 FAX Client’s fax number, enter as 999-999-9999 OTHR Other telephone number, enter as 999-999-9999

NAME-KEYS Field used to cross reference account for alphabetical search. Information in the name-keys field is entered in at the time the account is opened.

SPLIT A-B-C These fields are not used at this time.

COMM-DISC% Commission discount field. There are separate fields used for stock (STOCKS), bond (BONDS), and option (OPTNS) commission discounts. A number in this field indicates the percentage commission discount to be given on those types of trades.

SCHED

AVG

This field indicates the firm commission schedule to be used (will always indicate 01). This field cannot be updated. Place an "X" in this field. Coding at the account level for average pricing trades.

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OPENING NEW ACCOUNTS – SHIP FUNCTION

THE SHIP FUNCTION

The SHIP Function is used by the firm to identify the names and addresses of all interested parties designated to receive duplicate statements, duplicate confirmations, and proxy materials.

ACCESS PROCEDURE

SHIP 12345678 Type SHIP, space once, type the client account number, press ENTER Or

Type SHIP in the FUNC field when the ACCT screen is displayed, press ENTER

Or Press the F2 key when in the ACCT screen

A sample of the screen is displayed below:

SHIP 11/25/03 10:10:10 016/001 FUNC LAST ITEM <<<< SHIP SUMMARY SCREEN >>>>INQUIRY S ACCT 12345678 SEQ 001ACCT 12345678 AB01 SMITH JOHN SSNO 987654321 CSI 4C MSI IT DSI 1 ITEM CN ST PXY SEQ CK STR TK RG CHANGE 01 Y N N 001 N N N N 11/25/03 WR 1099 N Y JANE WILLIAMS 123 MAIN ST

Two digit item number. An item number is assigned to each interested party displayed in the SHIP Function and can be entered in this field to access the DETAIL screen for a specific recipient.

Screen Explanation:

ITEM

INQUIRY Screen inquiry code. This field is used to move between SHIP screens. Valid codes are:

D Access the DETAIL screen from the SUMMARY screen S Access the SUMMARY screen from the DETAIL screen.

NOTE: The PF4 key will alternate between Summary and Detail.

ACCT Client account number.

CN The code in this field indicates whether duplicate confirms will be sent to this recipient. Valid codes are:

Y Send duplicate confirms N Do not send duplicate confirms

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OPENING NEW ACCOUNTS – SHIP FUNCTION

ST The code in this field indicates whether duplicate statements will be sent. Valid codes are:

Y Send duplicate statements N Do not send duplicate statements

PXY This field indicates whether alternate proxy information is sent. Only one interested party can be designated as the alternate proxy for an account. Valid codes are:

Y Send alternate proxy material N Do not send alternate proxy material

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