OVERALL RISK TOLERANCE DEFINITIONS
Low. A conservative investor in which the investor is sensitive to short term losses, but is seeking to outperform inflation over the long term. Moderate. A moderate investor is one in which the investor is willing to accept more risk than the conservative investor in order to achieve long-term returns that significantly outperform inflation over the long-term. Moderate/High. An investor which accepts general market risk, and may seek to significantly outperform inflation over the medium term. High. An investor with a high tolerance for risk may seek to significantly outperform inflation in the short term and accepts the possibility of losses of principal.
Preservation of Capital. These types of investments generally run at the pace of inflation such as a money market or equivalent. Income. The primary characteristic of income oriented investments is that they generate periodic income for the client. An income oriented investor seeks regular and consistent returns on investments in the form of dividends and interest payments with little consideration given to capital appreciation. Types of investments in this category could include, but are not limited to, corporate bonds, municipal bonds, U.S. Treasury bonds/bills/notes, government agency bonds, collateralized mortgage obligations. Growth & Income. These types of investments may include but are not limited to preferred stocks, utility stocks, real estate investment trust stocks, fixed income unit investment trusts, bond mutual funds. If the investment is in high yield bonds, the account should indicate that speculation is allowed. Total return, also referred to as growth and income, seeks to combine both growth (capital appreciation) and income by investing in various types of securities and using various types of investment strategies. The structure of a growth and income portfolio is based on an investor’s individual needs and risk tolerances as well as a consideration of market conditions and trends. Growth. Growth refers to an increase in an investment’s value over time. This objective provides the potential for higher returns in exchange for volatility and an increased risk of loss of capital. Dividends and interest returns may be desirable but are not primary considerations. Investments in this category could include, but are not limited to, equities, equity mutual funds, equity sub-accounts of variable annuities and variable life contracts, real estate investment trusts, and limited partnerships. Speculation. These types of investments are the most risky in nature and generally provide the largest potential for price appreciation with the highest likelihood of volatility and total loss of investment capital. Securities in this category could include, but are not limited to, ordinary shares (i.e. shares of foreign corporations trading on their local exchange but not on any U.S. exchange), stocks trading on the Over-the-Counter Bulletin Board or the Pink Sheets, Initial Public Offerings (IPOs), high yield or “junk” bonds, (bonds below investment grade), and oil and gas drilling programs. Trading. High volume transactions using speculative instruments.
BUSINESS CONTINUITY PLAN DISCLOSURE
Overview VFG Securities, Inc. (VFG) has developed a Business Continuity Plan ("BCP") as a contingency to mitigate any impact of possible future business interruptions. Please read through this document carefully and become familiar with the alternatives we have in place to conduct business in the event of a Significant Business Disruption ("SBD"). VFG plans to quickly recover and resume business operations should there be an SBD and respond by safeguarding employees' lives and firm property, making a financial and operational assessment, protecting the firm's books and records, and allowing our clients to transact business.
Contacting Us Our Headquarters is located at: VFG Securities, Inc., 632 Arizona Ave., Santa Monica, CA 90401. Our main number is (310) 260-0022.
If after a significant business disruption you cannot contact us as you usually do, go to our website at www.vfgroup.net. A notice will be posted to our website with further instructions. If you cannot reach us in either of these ways, you should contact our clearing firm, Sterne, Agee for the following transactions "ONLY"
i. Emergency Orders to liquidate (close) existing positions.
ii. Emergency Instructions to issue a check or wire available funds.
iii. Requests to ACAT (transfer) the holdings of your account to another broker-dealer.
Business Continuity Plan
Our Business Continuity Plan addresses data backup and recovery, all mission critical systems, financial and operational assessments; alternative communication with our clients, employees, regulators; alternative physical locations of employees, critical suppliers, contractors, banks and counterparty impact; regulatory reporting and assuring clients of prompt access to their funds and securities if we are unable to continue business due to an SBD.
Our clearing firm, Sterne, Agee, backs up its important records in a geographically separate area. Contact them at 800.240.1438.
Our firm's BCP is designed to meet our existing obligations to clients in the event of an emergency or significant business disruption; however, it is not infallible. The unpredictable nature of some events may make it impossible to anticipate every scenario that could cause a business disruption. Although we are confident in our own preparedness, VFG Securities, Inc. has no control over the third party entities that we must rely upon in the event of an emergency. We test our Business Continuity Plan from time to time to ensure our readiness; yet these tests may not replicate conditions we would experience in a real emergency. Our BCP is subject to change without notice and we will maintain the most current Plan on our website at www.vfgroup.net. This is provided to you for informational purposes only.