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Good Faith Violation (“GFV”)

LaBrunerie Financial through its clearing agent Penson Financial Services, Inc. is required to implement a new policy concerning unsettled funds. Effective immediately, your account will be charged with a Good Faith Violation if you purchase a security in a cash account and sell that security to purchase another using unsettled funds. Three (3) GFVs in any twelve (12) month rolling period will result in your account being restricted to “Funds in Advance” of trading for a period of 90 days. If an account trades through a 90-day restriction, any resulting loss in the account will be the responsibility of the client and your account may be coded for "no more business."

Example:

On Monday customer sells “A” for $5,000, but holds no cash in his account
On Monday customer buys “B for $5,000
On Monday, Tuesday or Wednesday customer sells “B”, prior to the settlement date of “A”

In this example, the account would have been charged with a Good Faith Violation (“GFV”). The settlement date of security “A” is Thursday. If the customer had sold security “B” on settlement of the sale of “A”, then the purchase of security “B” would have been “fully paid” and no violations would have occurred.

For questions contact LaBrunerie Financial at 1.800.736.7460.

The information on this website is for discussion and information purposes only. All accounts accepted at the discretion of LaBrunerie Financial. Nothing contained herein should be considered as an offer to buy or sell any security or securities product. LaBrunerie Financial is a registered broker dealer, but is not resistered in all states. Please contact LaBrunerie Financial at 1.800.736.7460 for further information. Systems response and access times may vary due to market conditions, system performance, and other factors.

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