Legal Disclosures

  • Anti-Money Laundering (“AML”) and Customer Identification Program (“CIP”)

    Anti-Money Laundering (“AML”) and Customer Identification Program (“CIP”)

    In accordance with the regulations set forth by the US Patriot Act, the Bank Secrecy Act and the rules of the Office of Foreign Assets Control (OFAC), the Financial Crimes Enforcement Network (FinCEN), the SEC and FINRA, B. Riley & Co., LLC ("B. Riley") has in place a program to identify and report suspicious activities that could be related to money laundering or other illegal activities and to monitor and verify the identities of our customers.

    What this means for you: When you open an account or otherwise establish a business relationship with B. Riley, we may ask for your name, address, date of birth, social security number or taxpayer ID and other information that will allow us to positively identify you. We may also ask to see your driver’s license, corporate formation documents or other identifying documents as applicable.

     B. Riley reserves the right to refuse to open any account, or close an existing account, at any time if information requested pursuant to an AML inquiry is refused.

  • Average Price Confirmations

    Average Price Confirmations

    Subject to applicable regulatory requirements, B. Riley may execute your order in more than one transaction over a period of time, or, in certain markets, aggregate your order with other orders.   In such instances, B. Riley will provide you with a confirmation noting the aggregate amount of securities purchased or sold in your account at a single “average price”.  B. Riley will provide you with information about the individual executions at your request without charge.  Please notify your sales representative at the time you place your order if you do not want your order to be reported to you at a single average price.  Should you elect this option you will receive a confirmation for each individual execution.

  • Best Execution

    Best Execution

    B. Riley seeks to execute its customers’ orders at the most favorable terms reasonably available under prevailing market conditions.  B. Riley is responsible for overseeing the selection of the best market for each trade and for ensuring that the customer receives the best price.  Details regarding B. Riley’s routing of U.S. equity and option orders are made publicly available, at no cost to you, on a quarterly basis.  Please refer to the section entitled “SEC Rule 606: Quarterly Report on Routing of Customer Orders” for more information.  B. Riley conducts regular reviews to ensure that clients are getting the best executions on trades.  

  • Business Continuity Plan

    Business Continuity Plan

    B. Riley has 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 is 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 on our business continuity plan.

    Contacting Us – In case of an emergency, you should attempt to contact our home office in Los Angeles, CA first. If you are unable to reach someone in Los Angeles, you should attempt to contact someone in our other offices.

    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. In short, our business continuity plan is designed to permit our firm to resume operations as quickly as possible.

    The plan addresses, among other things: data backup and recovery; all mission critical systems; financial and operational assessments; alternative communications with customers, employees, and regulators; alternate physical location of employees; critical supplier, contractor, bank 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. The plan also covers disruptions that may affect each office across the country.

    Varying Disruptions – Significant business disruptions and its degree of severity can vary in their size and scope. We plan to continue business operations, transfer operations to our clearing firm if necessary, and notify you through our web site or our customer emergency number, (310) 966-1444 on how to contact us and the time frame that we expect to resume business operations. If the significant business disruption is so severe that it prevents us from remaining in business, we will assure our customer’s prompt access to their funds and securities.

    If you have questions about our business continuity planning, please contact the Compliance Department at (310) 966-1444 or email .(JavaScript must be enabled to view this email address).

  • Discretionary Authority

    Discretionary Authority

    If you have granted discretionary trading authority over your retail account to a third party, you can revoke such discretionary authority for any of your accounts at any time. Should you wish to cancel such discretionary handling of your account, please contact B. Riley’s Compliance Department at 310-966-1444, by fax to 310-966-1448 or by email to .(JavaScript must be enabled to view this email address).

  • Dispute Resolution/Arbitration

    Dispute Resolution/Arbitration

    By transacting with B. Riley you consent to a pre-dispute arbitration clause in which you agree as follows:

    1. All parties have given up the right to sue each other in court, including the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed.
    2. Arbitration awards are generally final and binding; a party’s ability to have a court reverse or modify an arbitration award is very limited.
    3. The ability of the parties to obtain documents, witness statements, and other discovery is generally more limited in arbitration than in court proceedings.
    4. The arbitrators do not have to explain the reason(s) for their award unless, in an eligible case, a joint request for an explained decision has been submitted by all parties to the panel at least 20 days prior to the first scheduled hearing date.
    5. The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry.
    6. The rules of some arbitration forums may impose time limits for bringing a claim in arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court.
    7. The rules of the arbitration forum in which the claim is filed, and any amendments thereto, have been incorporated into your account agreement.

    The terms of the pre-dispute arbitration clause are not listed here in their entirety; please contact B. Riley’s Compliance Department at 310-966-1444, by fax to 310-966-1448 or by email to .(JavaScript must be enabled to view this email address) for a full copy of this agreement.

  • DVP/RVP Account Statement Mailing Suppression

    DVP/RVP Account Statement Mailing Suppression

    Monthly account statements and physical trade confirmations for DVP/RVP accounts or master/sub-accounts can be suppressed upon receipt of authorization by the account owner or authorized individual.  In order to elect this option a DVP/RVP Account Statement Mailing Suspension Consent Form is required to be completed, signed and returned in its original form to B. Riley’s Operations department at the below address: 

    B. Riley & Co., LLC
    11100 Santa Monica Blvd, Suite 800
    Los Angeles, CA 90025

    This suspension shall remain in effect until such a time as B. Riley is notified to reinstate the delivery of statements. Any suppressed statements are available to the account owner promptly upon request. For more information or to receive the required form please contact the B. Riley Operations Department at 310-966-1444 or via email to .(JavaScript must be enabled to view this email address).

  • DVP/RVP Trade Affirmations

    DVP/RVP Trade Affirmations

    Trades in Delivery Versus Payment ("DVP") and Receipt Versus Payment ("RVP") accounts should be affirmed by the contra firm no later than the settlement date.  In the event that a trade is not affirmed or is unknown (commonly called “dk’d”, which means “don’t know”) post-settlement interest charges may be incurred and passed along to you as the customer.

    In the event that a contra firm is short a position and cannot deliver in a timely fashion we request that our Operations department be notified via email to .(JavaScript must be enabled to view this email address) or via phone at 310-966-1444.  Should a potential buy-in occur we will make every attempt to notify you, the customer, at least 24 hours in advance. 

  • Electronic Delivery of Prospectuses

    Electronic Delivery of Prospectuses

    Pursuant to the Securities Exchange Act of 1934 Release No. 36345 (Oct. 1995) and Release No. 37182 (May 1996) by executing the B. Riley customer account agreement you have given your consent to receive prospectus delivery electronically.  Generally a prospectus will be sent via email with a hyperlink to the actual prospectus included in the body of the email.  If you do not consent to the electronic delivery of prospectuses please notify .(JavaScript must be enabled to view this email address).

     

  • Email Disclaimer

    Email Disclaimer

    Any recommendation contained in any email may not be suitable for all investors.  Moreover, although the information contained herein has been obtained from sources believed to be reliable, its accuracy and completeness cannot be guaranteed.  B. Riley & Co., LLC may make markets and effect transactions, including transactions contrary to any recommendation herein, or have positions in the securities mentioned herein (or options with respect thereto) and may also have performed investment banking services for the issuers of such securities.  In addition, employees of B. Riley & Co., LLC may have positions and effect transactions in the securities or options of the issuers mentioned herein and may serve as directors of such issuers.  For additional information, contact B. Riley & Co., LLC at (888) 295-0155.  All rights reserved by B. Riley & Co., LLC.  Member FINRA & SIPC.

  • Extended Hours Trading Disclosure

    Extended Hours Trading Disclosure

    This disclosure is provided for customers who engage in trading outside normal market hours.  Such trading involves certain risks explained below.

    1. Risk of Lower Liquidity - Liquidity refers to the ability of market participants to buy and sell securities. Generally, the more orders that are available in a market, the greater the liquidity. Liquidity is important because with greater liquidity it is easier for investors to buy or sell securities, and as a result, investors are more likely to pay or receive a competitive price for securities purchased or sold. There may be lower liquidity in extended hours trading as compared to regular market hours. As a result, your order may only be partially executed, or not at all.
    2. Risk of Higher Volatility - Volatility refers to the changes in price that securities undergo when trading. Generally, the higher the volatility of a security, the greater its price swings. There may be greater volatility in extended hours trading than in regular market hours. As a result, your order may only be partially executed, or not at all, or you may receive an inferior price in extended hours trading than you would during regular market hours.
    3. Risk of Changing Prices - The prices of securities traded in extended hours trading may not reflect the prices either at the end of regular market hours, or upon the opening of the next morning. As a result, you may receive an inferior price in extended hours trading than you would during regular market hours.
    4. Risk of Unlinked Markets - Depending on the extended hours trading system or the time of day, the prices displayed on a particular extended hours system may not reflect the prices in other concurrently operating extended hours trading systems dealing in the same securities. Accordingly, you may receive an inferior price in one extended hours trading system than you would in another extended hours trading system.
    5. Risk of News Announcements - Normally, issuers make news announcements that may affect the price of their securities after regular market hours. Similarly, important financial information is frequently announced outside of regular market hours. In extended hours trading, these announcements may occur during trading, and if combined with lower liquidity and higher volatility, it may cause an exaggerated and unsustainable effect on the price of a security.
    6. Risk of Wider Spreads - The spread refers to the difference in price between what you can buy a security for and what you can sell it for. Lower liquidity and higher volatility in extended hours trading may result in wider than normal spreads for a particular security.
    7. Risk of Lack of Calculation or Dissemination of Underlying Index Value or Intra-day Indicative Value (“IIV”) - For certain Derivative Securities Products (such as exchange-traded funds, ETFs), an updated underlying index value or IIV may not be calculated or publicly disseminated in extended trading hours. Since the underlying index value and IIV are not calculated or widely disseminated during the pre-market and post-market sessions, an investor who is unable to calculate implied values for certain Derivative Securities Products in those sessions may be at a disadvantage to market professionals.

     

  • FINRA BrokerCheck

    FINRA BrokerCheck

    Created by FINRA in 1988, and formerly known as the Public Disclosure Program, FINRA BrokerCheck provides investors with an easy, free way to learn about the professional background, business practices, and conduct of FINRA registered firms and their brokers. To request information under this program, visit the FINRA Web site at http://brokercheck.finra.org, or call (800) 289-9999. Through this internet site or hotline, you can request a public report of background information on FINRA registered firms and their brokers. This report reflects information provided by the broker, the firms, and regulators as part of the securities industry’s registration and licensing process.

    Should you have any complaints or disputes relating to your account please contact BRC’s Compliance Department at 310-966-1444, by fax to 310-966-1448 or by email to .(JavaScript must be enabled to view this email address).

  • Fully Paid Lending

    Fully Paid Lending

    Retail customers with a minimum of $250,000 in assets in their B. Riley accounts may be eligible to participate in a fully-paid lending program offered by our clearing firm.  In a “fully paid” transaction you can lend a specific security to our clearing firm and in return you will receive collateral in the form of cash & securities held at a custodial bank.  In addition, you receive an interest rate-based fee.  Participation in this program is optional and requires the completion of additional paperwork.  Please note that there are risks associated with participation in this program some of which include:

    • Fully-paid securities on loan are not covered under the provisions of the Securities Investor Protection Act of 1970.
    • Under the securities lending agreement you relinquish your ability to exercise voting rights.
    • Fully paid securities on loan are no longer eligible for margin treatment or buying power calculations.
    • Securities that pay dividends will be paid as “cash-in-lieu” which may have different taxable consequences than receipt of actual dividends.

    For a full list of disclosure or for more information on this program please contact the Operations Department at 310-966-1444 or via email to .(JavaScript must be enabled to view this email address)

  • Funding Your Retail Account

    Funding Your Retail Account

    Personal checks and wire transfers are the only form of monetary deposits that will be accepted into your retail brokerage account.  All incoming checks or wires from 3rd parties must be confirmed with the client at the time of deposit to determine the business reason behind the 3rd party deposit.  B. Riley reserves the right to refuse any deposit.

  • Held or Not Held Orders

    Held or Not Held Orders

    When you place an order with your sales representative, you may specify that your order is handled on either a “held” or “not held” basis. A “not held” order means that you have given B. Riley discretion as to the price and time of execution of your order. If given a “held” order, B. Riley will not have discretion on handling your order and must execute it at the prevailing market price; or, if it’s a “held” limit order, any execution will take place at the limit price or better, if available.

    As “not held” orders give B. Riley the flexibility to work your order to seek to obtain the best execution reasonably available under the prevailing circumstances, your orders will be treated as “not held” unless we are specifically instructed to treat the order differently. Please note that, under FINRA Rules, a “not held” order does not have price protection. Consequently, there is no Limit Order Protection (i.e. no Manning obligation) for these orders and B. Riley is not required to match incoming market orders with unexecuted better-priced limit orders. Nonetheless, any purchase and sale transactions must be consistent with our efforts to provide best execution of your orders. Please notify your sales representative at the time you place your order if you wish your order to be treated other than “not held”.

  • Initial Public Offerings (IPOs)

    Initial Public Offerings (IPOs)

    Pursuant to FINRA Rules 5130 & 5131 (the Rules), B. Riley may not sell or cause to be sold a new issue (as defined in the Rules; generally, initial public offerings (“IPOs”) of equity securities) to any account in which a restricted person holds a beneficial interest unless the account qualifies for a general exemption under the Rule. In addition, there is a restriction that applies to sales to executive officers or directors of a public company or covered non-public company.  

    B. Riley requires retail account holders sign and return an IPO Certification annually indicating whether or not their account is eligible to purchase IPO shares in accordance with the Rule. In addition, in connection with any new issue, retail account holders hereby represent that they will not act as a finder (i.e., a person who receives compensation for identifying potential investors in an offering) or in a fiduciary capacity to any managing underwriter of any new issue and that they shall notify B. Riley immediately in the event that such representation ceases to be true and correct.  IPO Certifications can obtained from and returned to B. Riley’s Operations Department by fax to 310-966-1448 or by email to .(JavaScript must be enabled to view this email address).

  • Instant Messaging

    Instant Messaging

    Please note that any instant message sent from or received by B. Riley personnel is subject to archiving, monitoring and production to third parties as required by applicable rules, regulations and law. Instant messages and emails may be reviewed by someone other than the intended recipient.

  • Institutional Suitability Certification

    Institutional Suitability Certification

    Institutional Suitability Certification: Affirmative Indication of Exercise of Independent Judgment (Pursuant to FINRA Rule 2111)

    In connection with any recommended (as defined in FINRA rules), transaction or investment strategy by B. Riley, you have acknowledged on behalf of your Institution that:

    1. It is an Institutional Account as defined in FINRA Rule 4512(c);
    2. It (1) is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities; and (2) will exercise independent judgment in evaluating the recommendations of B. Riley or its associated persons, unless it has otherwise notified B. Riley in writing;
    3. It will notify B. Riley if anything in this Certification ceases to be true;

    You have acknowledged that the above statements are accurate but do not waive any rights afforded under U.S. federal or state securities laws, including without limitation, any rights under Section 10(b) of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

    This shall apply with respect to all recommended transactions and investment strategies involving securities that are entered into by your Institutional Account as named on the B. Riley Institutional New Account Form, whether for the account of such Institutional Account or for the account of any beneficial owner that has delegated decision making authority to such Institutional Account.

  • Investment Advisors with Subaccounts

    Investment Advisors with Subaccounts

    Investment Advisors may request the establishment of certain subaccounts with B. Riley for the purpose of executing transactions that will clear or settle at another financial institution.  The limited information that is provided to B. Riley is to be used primarily to assist the Investment Advisor with its recordkeeping and to hold positions for a limited duration to facilitate the transfer of assets to another financial institution.  All transactions in these subaccounts will be initiated by individuals authorized to transact on behalf of the Investment Advisor, there will be no interaction with the beneficial owners of the accounts, and in fact the beneficial owners shall have no direct control over subaccounts opened with B. Riley.

    Investment Advisors that maintain subaccounts with B. Riley attest that they have in their files client authorizations to direct orders to B. Riley, in a fully discretionary manner, or otherwise, for all accounts for whom they may place orders through B. Riley.  Investment Advisors are authorized to place orders with B. Riley to purchase and sell securities, to deliver and receive securities and to request and receive payment of funds on behalf of each account.  In lieu of furnishing B. Riley with specific evidence of authority in connection with each account in which an order with respect to securities is given to B. Riley, the Investment Advisor agrees to indemnify and hold B. Riley harmless in the event that any such account should make claim against B. Riley that its execution of any order, on the basis of the Investment Advisor’s instructions, was without authority. 

    Furthermore, B. Riley may rely upon the Investment Advisor’s assurance that it has examined any trust instruments, corporate resolutions or other authorizing documents, and is satisfied that the person or persons who signed such document(s) were themselves properly authorized by the entity they represent.  Moreover, based upon the review of such documents and other relevant information regarding its clients, the Investment Advisor is satisfied that any investment or investment decision executed through B. Riley is suitable for the relevant client.  Investment Advisor agrees to indemnify and hold harmless B. Riley in the event that any such account should make claim against B. Riley that any investment or investment decision was not suitable.
     

  • Large Trader Identification (LTID)

    Large Trader Identification (LTID)

    In the event that you or your account is considered to be a large trader as defined by Rule 13h-1 under the Securities Exchange Act of 1934 you must provide B. Riley with your large trader identification number ("LTID").  Should you no longer qualify as a large trader you must notify B. Riley's Operations Department at 310-966-1444 or via email to .(JavaScript must be enabled to view this email address).

  • Limit Order Display

    Limit Order Display

    The Limit Order Display Rule obligates the B. Riley (the "Firm") to reflect the price and full size of a customer's limit order (whether the Firm's customer or the customer of another broker-dealer) in the Firm's quote, if the order would improve the Firm's quote. The Rule applies to common stock, preferred stock, and convertible preferred stock. In addition, if the Firm's bid or offer is equal to the National Best Bid or Offer, the size of any customer limit order that equals the bid or offer and represents more than a de minimis change in size must be displayed. The SEC defines de minimis as size that is equal to or less than 10% of the Firm's quotation size.

    One exception to this Rule allows for customers to request that their limit orders not be displayed, either at the time of the order or prior thereto, pursuant to agreements with our customers. BRC will treat your limit order as “not displayed” unless specifically told to display the order. Please notify your sales representative at the time you place your order if you wish your limit order to be displayed. 

  • Margin Disclosure

    Margin Disclosure

    B. Riley is furnishing this disclosure to you to provide some basic facts about purchasing securities on margin, and to alert you to the risks involved with trading securities in a margin account. Before trading stocks in a margin account, you should carefully review this Margin Disclosure and the margin agreement provided to you by B. Riley.

    When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from your brokerage firm. If you choose to borrow funds in connection with your account, you will be required to open a margin account which will be carried by B. Riley*. The securities purchased in such an account are collateral for the loan to you. If the securities in your margin account decline in value, so does the value of the collateral supporting your loan. And, as a result, B. Riley is required to take action, such as issue a margin call and/or sell securities or other assets in any of your accounts, in order to maintain the required level of equity in the account.

    It is important that you fully understand the risks involved in trading securities on margin. These risks include the following:

    • You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to provide additional funds to the firm that has made the loan to avoid the forced sale of those securities or other securities or assets in your account(s).
    • Your brokerage firm 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 B. Riley's higher "house" requirements, B. Riley may be required to sell the securities or other assets in any of your accounts to cover the margin deficiency. You also will be responsible for any short fall in the account after such a sale.
    • Your brokerage firm 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. A brokerage firm may attempt to notify customers of margin calls, but it is not required to do so. However, even if your B. Riley has contacted you and provided a specific date by which you can meet a margin call, B. Riley can still take necessary steps to protect its financial interests, including immediately selling assets without notice to you.
    • You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call. Because the securities are collateral for the margin loan, B. Riley has the right to decide which security or other asset to sell in order to protect its interests.
    • Your brokerage firm may move securities held in your cash account to your margin account and pledge or rehypothecate the transferred securities. Any such pledge or rehypothecation may result in a benefit to B. Riley and result in your becoming a general unsecured creditor of your brokerage firm with respect to the securities so pledged or rehypothecated.
    • The firm can increase its "house" maintenance margin requirements at any time and is not required to provide you advance written 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 your firm to liquidate or sell securities or 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.

    *B. Riley ("Brokerage Firm") has entered into a fully disclosed clearing agreement with National Financial Services LLC (“Clearing Firm”) pursuant to which Clearing Firm may perform certain processing, clearing, custodial, and financing functions for your brokerage firm with respect to your account. Clearing Firm extends the margin credit to you and carries your margin loan. Clearing Firm is a beneficiary of your representations, warranties, acknowledgments, and covenants in the margin agreement (including, without limitation, your authorizations, indemnifications, waivers, and releases) to the same extent as if they were made directly by you to the Clearing Firm. The Clearing Firm, in its own name and for its own benefit, is entitled to exercise and enforce directly against you the margin agreement, all other rights granted to your brokerage firm, and the rights of the “firm” and “brokerage firm” described in this disclosure statement.

     

  • Net Trading

    Net Trading

    B. Riley is a market maker in a number of NASDAQ and OTC Markets securities; as such we have the capability to execute orders on a “net” basis. A "net" transaction is defined as a principal transaction in which a market maker, after having received an order to buy (sell) an equity security, purchases (sells) the equity security at one price (to/from another broker-dealer or another customer) and then sells to (buys from) the customer at a different price.

    For our Institutional Customers, unless instructed otherwise at the time the order has been placed, B. Riley may treat your order as a “net” transaction. Trades will be confirmed on a net basis with the following understanding: The price per share or other unit of trading will reflect a net price which includes the addition of any mark-up for purchase transactions or the deduction of any mark-down for sale transactions, where mark-ups or markdowns apply. In the event a transaction includes a commission, the net price will reflect any added commission for purchases or deducted commissions for sales. If the above is not consistent with your desire for confirming trades on a net basis, please notify your sales representative at the time you place your order that you do not want your order to be transacted on a “net” basis.

    For our Non-Institutional Customers, such as those with retail accounts, if you would like to effect a transaction on a “net” basis you must provide written consent to B. Riley on an order-by-order basis prior to B. Riley executing any portion of said order. All orders that are not transacted on a “net” basis may be imposed a commission.

  • Payment for Order Flow

    Payment for Order Flow

    Remuneration in the form of cash, liquidity rebates, order swapping or other reciprocal arrangements may be received by B. Riley for directing orders to specific brokers and dealers or market centers for execution. When such remuneration is received it is considered compensation to the firm. The source and amount of such remuneration, if any, will be furnished to you upon written request. Absent specific instructions from customers, all orders received that the subject of payment for order flow are directed to the source that offers customers the best execution.

    Notwithstanding the previous paragraph regarding payment for order flow, B. Riley selects certain market centers to provide execution of over-the-counter and exchange-listed securities transactions which agree to accept orders, transmitted electronically up to a specified size, and to execute them at or better than the national best bid or offer (NBBO). On certain larger orders, or if the designated market centers do not make a market in the subject security, B. Riley directly contacts market centers to obtain an execution. The designated market centers to which orders are automatically routed are selected based on the consistent high quality of their executions in one or more market segments and their ability to provide opportunities for executions at prices superior to the NBBO.

  • Penny Stocks (Low-Priced Securities)

    Penny Stocks (Low-Priced Securities)

    B. Riley is required by the U.S. Securities and Exchange Commission ("SEC") to give you the following disclosure statement: http://www.sec.gov/investor/schedule15g.htm. It explains some of the risks of investing in penny stocks. Please read it carefully before you agree to purchase or sell a penny stock.

  • Privacy Policy

    Privacy Policy

    In addition to the privacy policies of our clearing firm, National Financial Services LLC (http://fiiscontent.fidelity.com/769536.pdf), B. Riley has in place policies and procedures to ensure that our client’s privacy is protected.

    It is the policy of B. Riley not to disclose our clients’ nonpublic personal information except to our affiliates servicing your account, to non-affiliated third party service providers as allowable by law, or in response to inquiries from regulators or government authorities. Information is shared with our affiliates and vendors servicing your account only in the ordinary course of business. In all other cases where information is shared, express written consent must be acquired from the client. Any party that receives this information will use it only for the services required and as allowable under law, and is not permitted to share this information for any other purpose.

    In the normal course of business, information pertaining to your account may be shared with non-affiliated third parties that perform various services for us such as clearing firms, custodians, auditors and attorneys, and other non-affiliated third parties as required or permitted by law, such as regulatory bodies. Non-public information that B. Riley receives from you on your new account documents and/or other forms, includes, but is not limited to, your name, address, telephone number, occupation, social security number or tax identification number, and information pertaining to your financial status (i.e. net worth, annual income, etc). Access to client information within B. Riley will be limited to those employees and service providers who are involved in offering or administering the products and services that we offer. We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic information.

    B. Riley will adhere to these policies for both current and former clients and will notify customers of our policy at the time the relationship is established and annually thereafter. In the event that it becomes necessary to disclose any nonpublic information in a means inconsistent with this policy we will provide you with advance notice so that you will have the opportunity to opt out of such disclosure should you choose.

  • Recording of Telephone Conversations

    Recording of Telephone Conversations

    Client recognizes that both parties are afforded protection by the recording of telephone conversations, and Client acknowledges, authorizes and consents to the recording of conversations by means of electronic telephone recording equipment. Client understands that B. Riley may, in their sole discretion, tape record conversations without further notice or disclosure, without the use of an automatic tone warning device, and without assuming responsibility to make or retain such tape recordings. It is further agreed that such recordings may be used as evidence by B. Riley in any disputes between Broker or Clearing Firm and Client, subject to proper authentication.

  • Registered Representative

    Registered Representative

    Monthly statements and trade confirmations generally reflect a code or group name in reference to the registered representative assigned to your account. To inquire as to the specific sales representative within B. Riley that is responsible for servicing your account please contact the Operations Department at 310-966-1444 or via email to .(JavaScript must be enabled to view this email address).

  • Sales & Trading Commentary Disclosure

    Sales & Trading Commentary Disclosure

    THIS MESSAGE CONTAINS INSUFFICIENT INFORMATION TO MAKE AN INVESTMENT DECISION. This material is a product of the B. Riley & Co. (“B. Riley”) Equity Sales and Trading department. It is not a product of B. Riley’s Research Department, and is not to be regarded as research or a research report. Unless otherwise specifically stated, any views or opinions expressed herein are solely those of the individual author and may differ from the views and opinions expressed by B. Riley’s Research Department or other B. Riley departments, divisions and affiliates.

    B. Riley and/or its affiliates may trade or make markets for its own account on a principal basis in the securities referenced in this communication.  B. Riley and/or its affiliates may engage is securities transactions that are inconsistent with this communication and may have long or short positions in such securities. The information and any opinions contained herein are as of the date of this material and B. Riley does not undertake any obligation to update them. All market prices, data and other information are not warranted as to the completeness or accuracy and are subject to change without notice. Past performance is not indicative of future results, and no representation or warranty, express or implied, is made regarding any matter including future performance.

    This material does not constitute investment advice, does not take into account individual client circumstances, objectives, or needs, and is not intended as a recommendation to any particular clients. Information conveyed in this material, including references to strategies, securities or other financial instruments, may not be suitable for all investors.  In reaching a determination as to the appropriateness of any proposed transaction or strategy, clients should undertake a thorough independent review of the legal, regulatory, credit, accounting and economic consequences of such transaction in relation to their particular circumstances and make their own independent decisions.

    B. Riley does not provide tax advice. As such, any information contained in Equity Sales and Trading department communications relating to tax matters were neither written nor intended by B. Riley to be used for tax reporting purposes. Recipients should seek tax advice based on their particular circumstances from an independent tax advisor.

  • SEC Regulation 605: Monthly Report on Quality of Executions

    SEC Regulation 605: Monthly Report on Quality of Executions

    As a market maker, B. Riley is required to make publicly available reports that categorize order executions and include statistical data about execution quality for orders covered under Rule 605.

    2014:

    September - B. Riley has no covered orders for this month.

    August - B. Riley has no covered orders for this month.

    July - B. Riley has no covered orders for this month.

    June - B. Riley has no covered orders for this month.

    May - B. Riley has no covered orders for this month.

    April - B. Riley has no covered orders for this month.

    March - B. Riley has no covered orders for this month.

    February - B. Riley has no covered orders for this month.

    January - B. Riley has no covered orders for this month.

    2013:

    December - B. Riley has no covered orders for this month.

    November - B. Riley has no covered orders for this month.

    October - B. Riley has no covered orders for this month.

    September - B. Riley has no covered orders for this month.

    August - B. Riley has no covered orders for this month.

    July - B. Riley has no covered orders for this month.

    June - B. Riley has no covered orders for this month.

    May - B. Riley has no covered orders for this month.

    April - B. Riley has no covered orders for this month..

    March - B. Riley has no covered orders for this month.

    February - B. Riley has no covered orders for this month.

    January - B. Riley has no covered orders for this month.

  • SEC Regulation 606: Quarterly Report on Routing of Customer Orders

    SEC Regulation 606: Quarterly Report on Routing of Customer Orders

    SEC Regulation 606 requires all brokerage firms to make publicly available quarterly reports on their order routing practices. The report provides information on the routing of "non-directed orders" - any order that the customer has not specifically instructed to be routed to a particular venue for execution. For these non-directed orders, B. Riley has selected the execution venue on your behalf.

    The report is divided into four sections: one for securities listed on the New York Stock Exchange, one for securities listed on the NASDAQ Stock Market, one for securities listed on the American Stock Exchange or regional exchanges, and one for exchange-listed options. For each section, this report identifies the venues most often selected by B. Riley sets forth the percentage of various types of orders routed to the venues, and discusses the material aspects of B. Riley's relationship with the venues.

    Please click here to freely view transaction data per SEC Regulation 606.

     

  • Short Selling and “Locates” of Borrowing Securities

    Short Selling and “Locates” of Borrowing Securities

    Subject to certain limited exemptions, before placing a short sale, you are required to borrow, arrange to borrow, or otherwise have reasonable grounds to believe that the security sold short can be borrowed for delivery by settlement date. Prior to executing a short sale order on your behalf B. Riley will require confirmation from you that a borrow has been secured and from whom. This process is commonly referred to as “obtaining a locate.” A locate is an indication that, as of the time the locate is obtained, B. Riley has reasonable grounds to believe that securities will be available for borrowing on the settlement date. A locate is not a guarantee that securities will actually be available for lending and delivery on the settlement date or that the lender will not thereafter require the return of the borrowed securities at any time. If a sufficient quantity of securities is not available from our clearing firm’s inventory, B. Riley or our clearing firm may, among other things, contact third-party lenders to ascertain whether they have securities available for lending. If B. Riley or our clearing firm determines that there are reasonable grounds to believe that a sufficient quantity of securities is borrowable, B. Riley may proceed to execute the short sale on behalf of your account. If B. Riley or its clearing firm is unable to determine that the shares can be borrowed, the order will not proceed at that time.

    If the order is executed and the securities are not available for borrowing for any reason by the settlement date, you as the seller will “fail to deliver” to the purchaser. A purchaser or securities lender may, in addition to other remedies and at any time after the giving of any required notice, buy-in the securities that were not timely delivered and you will be responsible for all losses and costs of the buy-in. You agree to be responsible for any cost or loss B. Riley and/or our clearing firm may incur in sourcing and maintaining the borrow, or the cost our clearing firm may incur in obtaining the securities if the clearing firm is unable to borrow such securities. This includes costs associated with borrowed stock that is “easy to borrow” and later determined “hard to borrow” as determined by our clearing firm. You appoint our clearing firm, National Financial Services LLC, as agent to complete all such transactions and authorize our clearing firm to make advances and expend monies as are required. With respect to short positions maintained by you over a corporate action record date, our clearing firm will, on the relevant payment date for such corporate action, if any, charge your account for money or property equal in value to the cost of such corporate action attributable to your short position, including the costs of any lost tax benefits for the lenders. You acknowledge that our clearing firm may source a borrow of securities from its own proprietary accounts or from customer margin shares. You are ultimately responsible for the delivery of securities on the settlement date, the consequences of a failure to deliver and the timely return of securities borrowed on your behalf and all costs associated with such borrowings, including costs relating to any corporate actions.

  • SIPC

    SIPC

    B. Riley is a member of the Securities Investor Protection Corporation (“SIPC’). SIPC plays an important role in the overall system of investor protection in the United States by, in certain specified situations, restoring funds to investors with assets in the hands of bankrupt and otherwise financially troubled brokerage firms. As a member of the Securities Investor Protection Corporation (SIPC), funds are available to meet customer claims up to a ceiling of $500,000, including a maximum of $250,000 for cash claims.

    Additionally, securities in accounts carried by National Financial Services LLC ("NFS"), a Fidelity Investments company, are protected in accordance with the Securities Investor Protection Corporation ("SIPC") up to $500,000 (including up to $250,000 for cash awaiting reinvestment).  NFS also has arranged for coverage above these limits.  Neither coverage protects against a decline in the market value of securities, nor does either coverage extend to certain securities that are considered ineligible for coverage.  For more details on SIPC, or to request a SIPC brochure, visit http://www.sipc.org or call 1-202-371-8300. 

  • Trading Ahead of Customer Orders

    Trading Ahead of Customer Orders

    While our internal policies generally prohibit B. Riley from executing principal orders when there is customer order on the same side of the market, there may be circumstances where this activity would be allowable.  As such we are required to disclose that as permissible under FINRA Rule 5320 B. Riley may trade a security on the same side of the market for its own account at a price that would satisfy a customer order for an “institutional account” or for orders of 10,000 shares or more (unless such orders are less than $100,000 in value).  Should you choose to opt in to the protections afforded in Rule 5320 for all or any portion of your order(s) please notify your sales representative at the time you place your order.

  • Website Disclaimer

    Website Disclaimer

    The material located on the B. Riley website is for informational purposes only and is not intended as a solicitation to buy or sell any securities or other financial instrument or to provide any investment advice or service. Information included on our website is subject to change at any time. The firm does not guarantee the timeliness, sequence, accuracy or completeness of information included on this website. Past performance should not be taken as an indication of guarantee of future performance and no representation, express or implied, is made regarding future performance.

    The firm can only conduct business if registered in states where registration is required or if business is exempt under State requirements. Check with your representative or contact our Compliance Department to get a list of states we are currently registered in. B. Riley is a member of Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).

    B. Riley does not provide tax advice; clients should contact their attorney, accountant, or other tax adviser regarding tax matters.

    B. Riley does not take responsibility for content contained at hyperlinked sites.

    B. Riley may make markets and effect transactions, including transactions contrary to any recommendations herein, or have positions in the securities mentioned herein (or options with respect thereto) and may also have performed investment banking services for the issuers of such securities. In addition, employees of B. Riley may have positions and effect transactions in the securities or options of the issuers mentioned herein and may serve as directors of such issuers.

    For additional information, please contact B. Riley at (310) 966-1444.