©2018 Pershing LLC. Pershing LLC, member FINRA, NYSE, SIPC, is a wholly owned subsidiary of
The Bank of New York Mellon Corporation (BNY Mellon). Trademark(s) belong to their respective owners. FRM-NEW-ACCT-SS-10-18
New Account Agreement Instructions
For your account to be opened promptly and accurately, please provide the information requested on the form as outlined in the
instructions below.
Step 1. Account Registration (check one)
Additional documentation may be required to open certain account
types. Use the supplemental form to identify all participants and their
respective roles in the account. Contact your investment professional
for more information.
Steps 2–3. Institutional/Non-Institutional Account and USA
Patriot Act Information
These sections MUST be completed in order to establish the account.
Steps 4–5. Account Holder Information and Secondary
Account Holder Information
The legal address MUST be a street address. A post oce box is not
acceptable for a legal address. A legal address is the account holder’s
permanent residence address or, in the case of an entity, the place where it
maintains a physical presence. For those accounts opened for nonresident
aliens and foreign entities, the legal address must be the same as the
permanent residence address listed on IRS Form W-8BEN, W-8BENE or
W-8IMY. You must provide annual income and net worth in the same
manner. For instance, if the account is a joint account, and you are providing
a combined annual income, you must also provide a combined net worth.
NOTE: To help the government fight the funding of terrorism and money
laundering activities, federal law requires all financial organizations to
obtain, verify, and record information that identifies each person who opens
an account. When you open an account, we will ask for your name, address,
date of birth, and other information that will allow us to identify you. We may
also ask you to provide a copy of your driver’s license or other identifying
documents. The information you provide in this form may be used to
perform a credit check and verify your identity by using internal sources and
third-party vendors. If additional space is needed, attach a separate sheet.
Step 6. Interested Parties
If you would like to add an interested party to your account, provide the
interested party’s contact information in this section. Indicate if you
would like the interested party to receive copies of your statements,
confirmations, and proxies.
Step 7. Cash Management
Check the appropriate box to tell us how your proceeds should be
handled. If you elect to sweep proceeds, enter the product name or
acronym to designate your sweep instruction.
Step 8. User ID and E-Delivery Preferences
Use this section to create a User ID and temporary password for online
access, and to provide instructions to establish electronic delivery
(e-delivery) of certain brokerage account communications.
Step 9. Objective and Investment Details
Use this section to provide details about your account objectives and
investments. Account investment objectives are defined as follows:
Income – An investment approach by which an investor generally seeks
current income over time.
Long-Term Growth – An investment approach by which an investor
generally seeks capital appreciation through buying and holding
securities over an extended period of time.
Short-Term Growth – An investment approach by which an investor
generally seeks short-term capital gains through buying and selling
securities over a short period of time.
Step 10. Tax Lot Disposition Methods
First In, First Out (the tax lot(s) with the earliest trade date(s) will be
disposed, sold, transferred or exchanged first based on the order of
their acquisition).
Last In, First Out (the tax lot(s) with the latest trade date(s) will be
disposed, sold, transferred or exchanged first based on the order of
their acquisition).
Average Cost Using First In, First Out (this option is available ONLY
for mutual fund shares and covered stocks in Pershing’s dividend
reinvestment plans, and it reflects the average cost per share, considering
all tax lots of a security, even those no longer held by the investor. Upon
disposition of mutual fund shares, the average cost per share is used
to calculate gain or loss and although the calculation of gain or loss is
based on an average cost, the tax lots are disposed of on a FIFO basis).
High Cost (the tax lot(s) with the highest unit cost are disposed of first,
whether the tax lot(s) are short-term or long-term for capital gain tax
purposes).
High Cost Long-Term (the tax lot(s) that have the highest unit cost,
and produce a long-term capital gain or loss, are disposed of first — If
no long-term shares are identified, or if an inadequate number of long-
term shares are identified, then the short-term shares with the highest
unit cost will be disposed of ).
High Cost Short-Term (the tax lot(s) that have the highest unit cost,
and produce a short-term capital gain or loss, are disposed of first — If
no short-term shares are identified, or if an inadequate number of
short-term shares are identified, then the long-term shares with the
highest unit cost will be disposed of).
Low Cost (the tax lots with the lowest unit cost are disposed of first, whether
the tax lots are short-term or long-term for capital gain tax purposes).
Low Cost Long-Term (the tax lots with the lowest unit cost, and produce
a long-term gain or loss, are disposed of first — If no long-term shares are
identified, or if an inadequate number of long-term shares are identified,
then the short-term shares with the lowest unit cost will be disposed of).
Low Cost Short-Term (the tax lot(s) with the lowest unit cost, and
produce a short-term capital gain or loss, are disposed of first — If no
short-term shares are identified, or if an inadequate number of short-
term shares are identified, then the long-term shares with the lowest
unit cost will be disposed of).
Minimize Short Term Gains (take losses first and gains last. The tax lots
are disposed in the following order: Short term lots sold at a loss, from
highest cost to lowest cost; long term lots sold at a loss, from highest cost
to lowest cost; short term lots sold at no gain or loss; long term lots sold
at no gain or loss; long term loss sold at a gain, from highest to lowest
cost; short term lots sold at a gain, from highest cost to lowest cost).
Please consult a tax advisor before selecting a tax lot disposition
method. Pershing LLC may not provide tax advice, and accordingly,
you are solely responsible for the tax eect of any selected method
(or your use of your introducing brokerage firm’s default method), and
change from or to a new method, for federal, state, local and foreign
tax purposes. Please contact your introducing brokerage firm to
change a selection. Pershing LLC reserves the right to introduce new
tax lot disposition methods at any time or to make any change in the
oered tax lot disposition methods that is required by applicable law or
regulations, without prior notice.
Pershing’s application of the tax lot disposition methods to all account
trades and transactions shall control in all instances.
