MSEC LLC Disclosures
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Client Relationship Summary (Form CRS)
MSEC’s Form CRS summarizes information about the services it offers, the fees and costs associated with the services, conflicts of interest, legal standard of conduct, and disciplinary history. The relationship summary follows a standardized question-and-answer format that allows retail investors to more easily compare services and firms.
Regulation Best Interest Disclosure
MSEC’s Regulation Best Interest Disclosure provides information about the scope and terms of the relationship and business practices of MSEC with broker-dealer clients as well as material conflicts of interest. Additionally, the Regulation Best Interest Disclosure serves as an overview of items a retail investor may wish to consider when deciding whether to work with MSEC and its registered representatives.
SEC Rule 606 Reporting
SEC Rule 606 requires broker-dealers that route customer orders in equities and option securities to publish quarterly reports that provide an overview of their routing practices. MSEC, LLC introduces transactions on a fully disclosed basis to our clearing firm, National Financial Services, LLC (“NFS”). NFS has prepared reports pursuant to SEC Rule 606. The report provides information on the routing of “non-direct orders,” which are orders that the customer has not specifically instructed MSEC to be routed to a particular venue for execution. For non-direct orders, NFS has selected the execution venue on behalf of its customers.
The report is divided by month and each month includes orders separated by securities that are included in the S&P 500 and other non-S&P 500 stocks, and a separate section for listed options. The report will also identify the venue to which NFS routed the orders and, for each venue, the statistical information broken down by order type. For example, whether the order type was a market order, marketable limit order, non-marketable limit order and other orders.
Fee and Commission Disclosures
The Miscellaneous Account and Service Fees disclosure document and Commission and Transaction Fees disclosure document are applicable to brokerage accounts held at National Financial Services, LLC. The Miscellaneous Account and Service Fees disclosure document provides account and service related fee information while the Commission and Transaction Fees disclosure document provides commission and transaction related fee information. All fees and commissions are subject to change.
MSRB Rule G-10: Investor and Municipal Advisory Client Education and Protection
MSEC, LLC is registered with the U.S. Securities and Exchange Commission (“SEC”) and the Municipal Securities Rulemaking Board (“MSRB”). An investor brochure is posted on the website of the MSRB and describes the protections that may be provided by the MSRB and how to file a complaint with an appropriate regulatory authority.
Margin Disclosure Statement
The Margin Disclosure Statement provides basic facts about purchasing securities on margin, including the risks involved with trading securities in a margin account. Before trading stocks in a margin account, you should carefully review the Margin Disclosure Statement and the margin agreement.
Business Continuity Plan Summary
MSEC, LLC is committed to its Business Continuity Plan that has been developed along with its affiliated, registered investment advisor, Mariner, LLC dba Mariner Wealth Advisors. The Business Continuity Plan Summary provides a summary of how MSEC, LLC would address a significant business disruption.