Beginning September 5, 2017, the SEC will reduce the settlement cycle for transactions from a T+3 cycle to a T+2 cycle. This means that trades will settle TWO business days after being placed, instead of three. This means one less day to settle the trade, which includes making payment. This change will affect equities, corporate and municipal bonds, as well as most other securities. Please consider how a shortened time frame to pay for transactions may impact you.
The good news is we have options available to help you with a shortened settlement cycle.
We have the ability to set-up ACH (Automated Clearing House) transfers between your bank account and Alamo Capital. What does this mean for you? With your authorization, we will be able to pull money directly from your bank account to pay for trades so that you will no longer have to mail a check. It also means that you can authorize us to deposit money directly to your bank when you have proceeds from sales. We can also set-up your account so that dividends & income goes directly to your bank account.
In addition, we have an E-delivery option for your statements and trade confirmations. This will allow for you to receive your trade confirmations on the day that your trade is placed – not several days later in the mail.
There is no allowance for a late payment on a trade* due to the postal service’s delivery of your confirmation, so this electronic option could prove crucial in a shortened settlement cycle.
Please contact the below, or your Investment Advisor, with any questions.
Rene Allen Armida Sancen
Operations Assistant Client Relationship Manager
• THERE IS NO COST TO YOU TO SET THESE FEATURES UP OR TO USE THEM
• IT WILL ELIMINATE THE NEED TO WRITE CHECKS, USE ENVELOPES,
• PAY POSTAGE, OR REMEMBER TO MAIL PAYMENTS
• YOU WON’T NEED TO WAIT TO RECEIVE YOUR PROCEEDS
• WE CAN ALL “GO GREEN” IN THE PROCESS
*Unless your Broker requests an extension, which is accepted only on a case by case basis, and which involves a fee.
Click below to download the appropriate forms.
ACH-Form.pdf (34 downloads) Correspondent-ClientEXP-Online-Access-EDelivery-Enrollment-Form.pdf (36 downloads)