Abraham & Co., Inc. is a Washington State registered Investment Adviser and Broker Dealer. The Firm is also registered in the following states: CA, FL, TX and ID.
The registration status of the Firm and its representatives may, and does, change from time to time. Interested parties are directed to consult FINRA’s BrokerCheck for current registration status. The Firm may not conduct business in states in which it is not registered.
Client Account Protection:
As member of the “Securities Investor Protection Corporation” (SiPC) Abraham & Co. client accounts are covered against loss of cash and/or securities in the event of theft or firm insolvency up to a ceiling of $500,000, including a maximum of $250,000 for cash claims. (See terms of SiPC Coverage below). Our custodial firm, TD Ameritrade Institutional, which holds all of our advisory clients’ cash and securities, is also covered by the same SiPC protection.
Excess Account Insurance
TD Ameritrade provides each client $149.5 million worth of protection for securities and $2 million of protection for cash through supplemental coverage provided by London insurers. In the event of a brokerage insolvency, a client may receive amounts due from the trustee in bankruptcy and then SiPC. Supplemental coverage is paid out after the trustee and SiPC payouts and under such coverage each client is limited to a combined return of $152 million from a trustee, SiPC and London insurers. The TD Ameritrade supplemental coverage has an aggregate limit of $500 million over all customers. This policy provides coverage following brokerage insolvency and does not protect against loss in market value of securities., our clearing firm maintains private insurance coverage through underwriting syndicates at Lloyd’s of London to supplement SiPC protection for client accounts up to $200 million.
Terms of SiPC Coverage:
Customers of a failed brokerage firm get back all securities (such as stocks and bonds) that already are registered in their name or are in the process of being registered. After this first step, the firm’s remaining customer assets are then divided on a pro rata basis with funds shared in proportion to the size of claims. If sufficient funds are not available in the firm’s customer accounts to satisfy claims within these limits, the reserve funds of SIPC are used to supplement the distribution, up to a ceiling of $500,000 per customer, including a maximum of $250,000 for cash claims. Additional funds may be available to satisfy the remainder of customer claims after the cost of liquidating the brokerage firm is taken into account.
Client Privacy Protection:
Routing of Client Orders:
To avoid conflicts-of-interest and obtain best execution of orders for our brokerage customers and advisory clients, Abraham & Co. routes all trades through its clearing agent, Hilltop Securities, Inc., with the goal of obtaining the best available execution and price. We make no markets in securities and receive no compensation for order flow. Hilltop routes equity and option orders to a diverse group of market centers and regularly monitors the quality of the executions received.
In Case of Business Disruption:
FINRA Rule 3510 requires each member firm to create and maintain detailed a business continuity plan. Accordingly, we have developed a plan to ensure that business continues to run with minimal interruption during times of emergency or systems failure. The following is a summary of that plan: Business Continuity Plan Summary
Potential Conflicts of Interest With Our Clients:
Where appropriate, Abraham & Co. representatives or advisers may recommend to certain of the our brokerage customers and advisory clients, the securities of companies or entities that may be affiliated with management through common ownership. Historically these securities were issued through private placements in limited partnerships and some (equities) through publicly traded companies such as LKA Gold Incorporated (OTCQB:LKAI) in which the Abrahams hold substantial ownership, management and control positions. While these recommendations have been made only to clients who’ve demonstrated specific suitability requirements, this may present a significant conflict-of-interest when advising brokerage customers or advisory clients. The stock of LKA is considered highly speculative and parties interested in purchasing these securities must first read, agree and sign the Abraham & Co. Penny Stock Disclosure Statement & Agreement which can be found on the Client Resources page of this website. Before purchasing LKA Gold securities, brokerage customers and investment advisory clients are further advised to consult LKA’s website at: lkagold.com to read recent press releases, and public filings which can be found on LKA’s site under the “Investors” tab or on the SEC website at: https://www.sec.gov/cgi-bin/browse-edgar?company=lka&owner=exclude&action=getcompany