Providing a secure environment for Dominion Investor Services, Inc. and Dominion Portfolio Management, Inc. (Dominion’s) customers commands high priority status.
It is Dominion’s policy to respect the privacy of our customers, who maintain accounts with Dominion through our affiliated mutual and variable fund companies, and our clearing firm, Hilltop Securities (HTS).
Customers have the right to expect privacy and security relating to information collected by financial institutions and we have devoted a great deal of resources to design systems and procedures to safeguard your personal information.
These disclosures will summarize our policies and procedures.
Should you have further questions/ concerns, do not hesitate to contact us at (800) 929-5667.
Dominion Investor Services, Inc. (“DOMI”) is a general securities broker dealer and a member of FINRA and SIPC. Broker dealers and investment advisors offer different services and it is important for you to take the time to understand these differences. Your financial professional may be able to offer both types of services. If that is the case, you will receive a second Customer Relationship Summary. Free and simple tools to research firms and financial professionals are available at Investor.gov/CRS which also provides educational materials about broker dealers, investment advisors and investing.
WHAT INVESTMENT SERVICES AND ADVICE CAN DOMI PROVIDE ME?
DOMI and its financial professionals can provide you brokerage services. You should inquire of your financial professional as to what services he or she is licensed to provide. If you choose to hire DOMI and your financial professional to provide these services, DOMI will establish for you one or more accounts.
Brokerage Services: If you hire DOMI to provide brokerage services, DOMI provides the following:
DOMI provides brokerage, execution, clearing, and custody services through its clearing firm, Hilltop Securities;
DOMI also offers securities products that are held with the product sponsors such as mutual funds and variable annuities;
Upon request, your financial professional may recommend that you buy, sell or hold securities; and
Upon request, your financial professional will monitor the securities held in your account on a periodic basis (for example, quarterly). This should be a discussion point with your financial professional. Also, it should be noted that monitoring does not necessarily change account performance.
Any investment advice DOMI provides in conjunction with brokerages services will be incidental to DOMI’s primary business as a broker-dealer, which is selling, buying and exchanging securities.
It is your responsibility to decide whether or not to follow any recommendation by your financial professional. Neither DOMI nor your financial professional exercises discretion over the assets in your account. DOMI buys, sells and exchanges many kinds of securities, but your financial professional may recommend only those securities he or she is licensed to recommend.
WHAT FEES WILL I PAY?
The fees that you will pay on a brokerage account are illustrated in the following table. Each of these fees is more fully described below.
Type of Fees Brokerage Services
Mutual Fund Loads and Contingent
Deferred Sales Charges Yes
Mutual Fund 12b-1 Fees Yes
Mutual Fund Shareholder Fees and
Sub-transfer Agent Fees Yes
Commissions/Mark-Ups/Mark-Downs: A commission is the dollar amount DOMI receives each time it buys or sells a security other than a mutual fund or variable annuity when DOMI acts as your agent. These charges are paid from your account. A mark-up is an amount added to the cost of the security for DOMI compensation when purchasing a security for you. A mark-down is the amount deducted from the price of a security for DOMI compensation when it is sold for you. These charges are fully disclosed on your transaction confirmation.
Loads: The load is a sales commission charged by the issuing mutual funds or insurance company. These fees are set by the offering company as detailed in the company’s prospectus. DOMI will receive a portion of the amount the issuing company charges. These loads reduce the amount of shares you receive when you purchase a fund’s shares. These fees are not charged in all cases. Please refer to the company prospectus for details.
Contingent Deferred Sales Charge: A percentage of the account value charged by the issuing company for sale of a mutual fund or insurance company product not held for the prescribed period of time. Please refer to the company prospectus for details.
Other Mutual Fund Fees: The mutual funds may pay DOMI “shareholder servicing fees” and or “12-1 fees” for providing account services. All of these fees are based upon a percentage of the DOMI client assets invested in the mutual funds. These fees are paid from the mutual fund. These fees reduce the value of your shares.
WHAT ARE DOMI’s LEGAL OBLIGATIONS TO ME WHEN PROVIDING RECOMMENDATIONS AS MY BROKER-DEALER? HOW ELSE DOES YOUR FIRM MAKE MONEY AND WHAT CONFLICTS OF INTEREST DO YOU HAVE?
When we provide you with a recommendation as your broker dealer we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the recommendations and investment advice we provide you.
The following are some examples to help you understand what this means.
DOMI and its financial professional have an incentive to buy and sell securities more frequently in order to increase its compensation.
Many broker dealers inventory bonds or stocks for further sales to customers. DOMI does not engage in this practice which reduces potential conflicts. DOMI does execute principal trades and discloses the principal “commission” on your transaction confirmation.
HOW MIGHT YOUR CONFLICTS OF INTEREST AFFECT ME AND HOW WILL YOU ADDRESS THIS?
DOMI makes considerable effort to mitigate material conflicts of interest. DOMI does not create unnecessary conflicts by incenting specific products or specific product types. DOMI registered representatives are paid on the amount of business they do on an average basis over periods of time. DOMI does acknowledge that there is a natural conflict due to the simple fact that if the registered representative does not successfully make a sale then they do not receive compensation.
HOW DO YOUR FINANCIAL PROFESSIONALS MAKE MONEY?
Your financial professional receives a percentage of the revenue he or she generates for DOMI. Revenue may include commissions, loads and 12b-1 fees when your financial professional provides brokerage services. The revenue paid to your financial professional increases if he or she has more business.
Therefore, your financial professional has an incentive to encourage you to buy and sell securities more frequently.
He or she may receive or charge more commissions for certain securities, strategies, products or services due to the time and complexity involved in recommending or providing such securities, strategies, products or services. The charging of different fees in this manner is called “differential compensation.”
Your financial professional also has an incentive to encourage you to move your account from another firm to DOMI or from your retirement plan to DOMI in order to increase his or her own compensation.
DO YOU OR YOUR FINANCIAL PROFESSIONALS HAVE LEGAL OR DISCIPLINARY HISTORY?
Yes. Some of our financial professionals have a disciplinary history. You should go to https://www.Investor.gov/CRS for a free and simple search tool to research DOMI and your financial professional.
A QUESTION YOU MAY WANT TO ASK YOUR DOMI FINANCIAL PROFESSIONAL:
As a financial professional, do you have any disciplinary history? For what type of conduct?
You can request information and a copy of this Relationship Summary by sending an email to us at firstname.lastname@example.org or visiting us at 9000 Highway 2147 West, Suite 201, Horseshoe Bay, Texas 78657.
A QUESTION YOU MAY WANT TO ASK DOMI’S FINANCIAL PROFESSIONAL:
Who is my primary contact person? Is he or she a representative of the broker-dealer? Who can I talk to if I have concerns about how my financial professional is treating me?
Customer Relationship Summary
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Privacy and Routing Policies
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Dominion Investor Services, Inc. and Dominion Portfolio Management, Inc. (Dominion) respect the privacy of our clients, and we are committed to maintaining the confidentiality of any personal or financial information that we may collect. Dominion has always considered the safeguarding of sensitive information to be a high priority. This notice describes the types of client information we collect and under what circumstances we may share it.
Client Information that We Collect
Dominion collects only the information about you that is relevant to the establishment and maintenance of your account as the law (or regulations) requires or allows us to collect.
We do not share or redistribute our clients' (customers or consumers) personal information other than as necessary to service their accounts. Under no circumstances does Dominion sell or rent clients' (customers or consumers) personal information. This policy continues in effect for former clients.
Information about You is collected from the Following Sources
We retain the personal information from your application or contract that you provide for securities brokerage or asset management purposes so that your account may be serviced properly. This information includes: names, address, social security number, birth date, telephone numbers, marital status, investment objectives, annual income, investment experience, employment, number of dependents and, in the case of some insurance applications, smoking status, driving status, driver's license number, insurance history, medical history, and physician information.
Whenever you make a transaction in any of your accounts, regardless of account type or method of order entry, we maintain a record of the transaction including the security, the date, and the amount purchased, price, dollar amount of the transaction, and any other information that may be pertinent to the transaction.
We collect financial needs profiles, risk tolerance analysis, and other suitability information. Depending upon the type of services that are to be provided, you may be (or may have been) asked to fill out one or all of the above in addition to the standard application. This information is requested to assist in determining more detailed aspects of suitability when the products or services being considered require a more in-depth profile to determine whether they are appropriate and, if so, to add valuable insights as to how to best serve you.
Information other than that provided on the standard application may include: familiarity with strategies, investment constraints, level of financial sophistication, retirement goals, estate transfer information, financial structure information (assets, liability, liquidity, etc.), insurance coverage, your opinions on risk vs. reward, and any other information that you may choose to provide your representative to help produce an accurate profile of your needs.
We receive information from verification services and consumer reporting agencies to help ensure the accuracy of application data, or to assess credit worthiness if you apply for credit products.
With your consent, information is also received from other institutions (for example, if you are transferring an account).
Information that We Share
Dominion restricts access to your information to those who require that access in order to provide products and services to you. We may share the personal information that we collect about our customers, prospects, or former customers with:
Unaffiliated service providers (example: fulfillment companies and securities clearing houses)
Government Agencies and Law Enforcement Officials (example: tax reporting or court order)
Other organizations, as permitted by law that protect your privacy (example: fraud prevention efforts)
Other investment organizations, with your consent and instructions (example: a mutual fund company where you have an account)
Other service organizations, with your consent (example: if you request personalized performance reporting)
How We Protect Your Information
Dominion has always safeguarded our clients' information. We restrict access to your information physically and electronically. Hilltop Securities, our clearing firm, provides our electronic safeguards. Their systems are designed with extensive information protection controls in keeping with industry standards. These systems are regularly adapted to respond to changing requirements and advances in technology.
Dominion routes all orders to Hilltop Securities (HTS) via their proprietary order entry systems. Upon request, HTS will provide the routing detail on individual transactions. In order to request this information, please contact your Registered Representative or Dominion's Customer Service.
Payment for Order Flow
Dominion does not receive payment for Order Flow.
Business Continuity Summary
Dominion Investor Services, Inc. and Dominion Portfolio Management, Inc. (DOMI) have developed a Business Continuity Plan on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions are unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information about our Business Continuity Plan.
Contacting Us – If, after a significant business disruption, you cannot contact your assigned representative as usual or Dominion at (210) 265-8050 or (800) 929-5667, you should call our alternate number (210) 865-5530 or go to our website at www.domiinvestors.com. If you cannot reach us through any of those means: (1) If you have a brokerage account, you should contact our clearing firm, Hilltop Securities, at (800) 678-3792 or for instructions on how to execute, clear and settle your trades or how to have funds disbursed from your account; or (2) if you have a mutual fund or variable annuity account held directly through the provider, contact the provider directly using the phone number or website listed on your statement. Refer to the statement(s) you normally receive to determine which type(s) of account(s) you have.
Our Business Continuity Plan – We plan to quickly recover and resume business operations after a significant business disruption and respond by safeguarding our employees and property, making a financial and operational assessment, protecting the firm's books and records, and allowing our customers to transact business. A significant business disruption at our primary office in Horseshoe Bay, Texas should not affect your assigned representative's ability to transact business in your account. In short, our Business Continuity Plan is designed to permit our firm to resume operations as quickly as possible, given the scope and severity of the significant business disruption.
Our Business Continuity Plan addresses: data back-up recovery; all mission critical systems; financial and operational assessments; alternative communications with customers, employees, and regulators; alternate physical location of employees; critical supplier, contractor, band and counter-party impact; regulatory reporting; and assuring our customers prompt access to their funds and securities if we are unable to continue our business.
Our clearing firm, Hilltop Securities, and our mutual fund and variable annuity direct providers back-up our important records in geographically separate areas. While every emergency poses unique problems based on external factors, such as time of day and the severity of the disruption, our clearing firm has advised us that its objective is to restore its own operations and be able to complete existing transactions and accept new transactions and payments within four hours. Your orders and requests for funds and securities could be delayed during this period.
Varying Disruptions – Significant business disruptions can vary in their scope, such as only our firm, a single building housing our firm, the business district where our firm is located, the city where we are located, or the whole region. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption to only our firm or a building housing our firm, we will transfer our operations to a local site when needed and expect to recover and resume business within four hours. In a disruption affecting our business district, city, or region, we will transfer our operations to a site outside of the affected area, and recover and resume business within two days. In either situation, we plan to continue in business by transferring brokerage operations to our clearing firm. As stated earlier, if your area and assigned representative are not located in the affected disruption area, you should contact your assigned representative as you normally would. Our systems and procedures are designed to allow your representative's local office to perform mission critical trading operations independently. Should your local representative also be affected, we will notify you through our website at www.domiinvestors.com or our customer emergency number (210) 865-5530 on how to contact us. If the significant business disruption is so severe that it prevents us from remaining in business, we will ensure our customer's prompt access to their funds and securities.
For More Information – Should you have questions about our Business Continuity Plan Summary, please contact your assigned representative or you may call us at (800) 929-5667.
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This document is being provided to you to give you some basic information about purchasing securities on margin, and to alert you to the risks involved with trading securities in a margin account. Before trading securities in a margin account, you should carefully review the margin terms in your account application agreement. Please contact Dominion Investor Services, Inc. (DOMI) regarding any questions or concerns you may have with your margin accounts.
When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from DOMI. If you choose to borrow funds from DOMI, you will open a margin account with Hilltop Securities (HTS). The securities in your accounts are HTS's collateral for the loan to you. If the securities in your account decline in value, so does the value of the collateral supporting your loan. As a result, HTS and DOMI can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held with HTS through DOMI, in order to maintain the required equity in the account. HTS may also take action to sell securities or other assets in your accounts held with HTS and with certain FSC affiliates.
It is important that you fully understand the risks involved in trading securities on margin. These risks include, but are not limited to, the following:
You can lose more funds than you deposit in the margin account. A decline in the value of securities you purchased on margin may require you to provide additional funds or margin-eligible securities to HTS to avoid the forced sale of any securities or assets in your account(s).
HTS and DOMI can force the sale of securities or other assets in your account(s). If the equity in your account falls below the maintenance margin requirements or HTS's higher "house" requirements, HTS or DOMI can sell the securities or other assets in any of your accounts held at HTS through DOMI to cover the margin deficiency. HTS may also take action to sell securities or other assets in your accounts held with HTS and certain affiliates. You also will be responsible for any short fall in the account after such a sale, possibly including HTS's and/or DOMI's costs related to collecting the short fall.
HTS and DOMI can sell your securities or other assets without contacting you. Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that the firm cannot liquidate securities or other assets in their accounts to meet the call unless the firm has contacted them first. This is not the case. Most firms will attempt to notify their customers of margin calls, but they are not required to do so. In addition, even if a firm has contacted a customer and provided a specific date by which the customer can meet the margin call, the firm can still take necessary steps to protect its financial interests prior to that date, including immediately selling the securities without notice to the customer.
You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet the margin call. Because the securities and any other assets in your account(s) are collateral for the margin loan, HTS or DOMI has the right to decide which assets to sell in order to protect its interests.
HTS can increase its "house" maintenance margin requirements at any time and is not required to provide you advance notice. These changes in firm policy often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the call may cause HTS or DOMI to liquidate or sell securities or any other assets in your account(s).
You are not entitled to an extension of time on a margin call. While an extension of time to meet margin requirements may be available to customers under certain conditions, a customer does not have a right to the extension.
Short selling is a margin account transaction and entails the same risks as described above. HTS or DOMI can buy in your account securities to cover a short position without contacting you, and may use all or any portion of the assets in your account to make such a purchase. If the assets in your account are not sufficient to cover the cost of such a purchase, you will be responsible for any shortfall, possibly including HTS’s and/or DOMI's costs in collecting the shortfall.
In addition to market volatility, the use of bank card, check writing and similar features with your margin account may increase the risk of a margin call.
Margin credit extended by Hilltop Securities, Member FINRA/ SIPC.
EQUITIES Share Price Initial Requirement Maintenance Requirement
Long Stock $5 and below 100% 100% of market value
$5 1/8 and above 50% 35% of market value
Short Stock $1/8 - $2.50 50% $2.50 per share
$2.50 - $5.00 50% 100% of market value
$5.00 - $16 5/8 50% $5.00 per share
over $16 5/8 50% 30% of market value
Corporate (convertible) 50% 35%
Corporate (non-convertible) 25% 20%
Municipal 25% of market value 15% of market value -or-
10% of principal
whichever is greater
US Treasury Bills 1% of market value same as initial
US Treasury Bonds and Notes 10% of market value -or- same as initial
6% of principal
whichever is greater
Covered Writing: The sale of a call cannot be made in a cash account unless the underlying security
is long in the account prior to the sale.
Purchase to Open: 100% of total trade cost must be on deposit in cleared funds prior to placing an
Naked Options: $20,000 minimum equity or premium plus 20% of underlying stock value minus
out-of-the-money, whichever is greater.
Spread Positions: Bull - $25,000 minimum equity plus premium debit
Bear - $25,000 minimum equity plus the difference between the strike price
Index - $50,000 minimum equity
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$5,000 minimum equity is required to establish and maintain a margin account. All applicable originally signed agreements must be on file prior to making the first trade in the account.
Margin and maintenance requirements are set by the Federal Reserve and Hilltop Securities.
These requirements are subject to change without notice.