Important disclosure information

Review the following disclosure information for extensive details about Mercer Securities.

Business continuity
Revenue sharing
SEC Rule 606
Extended-hours trading
Client complaint contact information

Business continuity

Mercer maintains a business continuity plan, including redundant computer systems and alternate processing facilities, to address interruptions to our normal course of business. These plans are reviewed annually and updated as necessary.

Our plans outline the actions Mercer will take in the event of a building, citywide, or regional incident, including relocating technology and operational personnel to pre-assigned alternate facilities. Technology data processing can also be switched to an alternate data center. In the event of a regional incident, Mercer has the ability to transfer operations and processing functions to its clearing agent, Pershing LLC (Pershing).

Mercer operational facilities are equipped for resumption of business and are tested several times per year. Our recovery time objective for business resumption, including those involving a relocation of personnel or technology, is four (4) hours. This recovery objective may be negatively affected by the unavailability of external resources and circumstances beyond our control.

If Mercer is experiencing business interruption and cannot be reached at
866-727-7277, you may also visit the Customer Support page for our clearing firm, Pershing, at www.pershing.com. Pershing may be contacted directly to process limited trade-related transactions, cash disbursements, and security transfers. Instructions to Pershing must be in writing and transmitted via facsimile or postal service as follows:

Pershing LLC
P.O. Box 2065
Jersey City, NJ 07303-2065
Fax: (201) 413-5368

For additional information about how to request funds and securities from Pershing if Mercer cannot be contacted due to a significant business interruption, please refer to the information below or call Pershing at (201) 413-3635 for recorded instructions. If you cannot access the instructions from the previously noted telephone number, Pershing may be contacted at (213) 624-6100, extension 500, as an alternate telephone number for recorded instructions.

The specific transactions Pershing will perform for clients of Mercer, and the required accompanying information, are as follows:

Trades

Pershing will process the following closing security transactions:

Sale of security position held long in the client's account
Buy of a security to close out a short security position

Pershing will process closing security transactions upon receipt of written instructions that must include the following information:

Client brokerage account number
Client name (as registered on the brokerage account)
Security description, including symbol or CUSIP® number
Number of shares

NOTE: All orders will be handled as market orders.

Cash disbursements

Pershing will process cash disbursements upon written instructions that must include the following information:

Client brokerage account number
Client name (as registered on the brokerage account)
Exact amount to be disbursed
Indicate method of disbursement (as follows) and provide the information indicated:
1. Check (payable to account name only)
  - Indicate name and address of record check is to be mailed to
2. Federal funds
  - Indicate receiving bank name, ABA number, and receiving bank account number

NOTE: The receiving bank account name and brokerage account name must be identical unless Pershing has a letter of authorization on file indicating alternate instructions.

Securities transfers

Pershing will process security transfer requests upon written instructions that must include the following information:

Client brokerage account number
Client name (as registered on the brokerage account)
Description of security(ies) to be transferred, including symbol(s) or CUSIP® number(s)
Quantity to be transferred
Receiving account information for securities, as follows:
1. Transfer to another brokerage account at Pershing
  - Provide receiving account number at Pershing (name and address on both accounts must be the same)
2. Transfer to another financial organization
  - Name of the receiving financial organization

Revenue sharing

Mercer Securities, a division of MMC Securities Corp. ("MMCSC or the "Dealer") receives networking fees for various services provided, which relate to our involvement with the sale of many different mutual funds. These fees are generally paid from invested assets in the mutual funds, but they can also be subsidized in part by affiliates of the mutual funds.

In addition to sales loads, 12b-1 fees, networking and processing fees, MMCSC receives other compensation from certain distributors or advisors of mutual funds that we sell. These separate compensation amounts, commonly referred to as revenue sharing, are based upon two components: 1) the amount of sales by MMCSC of a particular mutual fund to our clients; and 2) the value of a particular mutual fund family's shares held by our clients. MMCSC requires that the payments be made directly from the distributor, and not from the mutual funds or indirectly through mutual funds portfolio trading commissions, because revenue sharing payments are intended to compensate us for services in connection with our involvement in the sales of various mutual funds.

MMCSC may also receive other payments from mutual fund companies and their affiliates in connection with educational seminars or conferences, or other promotional incentives generally provided to dealers to the extent allowed by SEC and FINRA rules and by other applicable laws and regulations. MMCSC also receives marketing support payments which are generally available to most dealers who engage in selling a significant amount of certain mutual funds. These specific fees will not normally exceed 0.085% of the average assets of the retail mutual funds attributable to that dealer on an annual basis. These payments are made for marketing support services provided by the Dealer, including: formalized business planning assistance; support and marketing to Dealer's sales representatives through internal sources (such as Internet web sites and mailings); assisting and facilitating new product approval on a timely basis; enabling distributor to participate in and present at conferences; Periodic communication to distributor regarding internal policies; allowing distributor to educate dealer's registered representatives upon the Dealer's request regarding new products; and periodic communications from Distributor regarding policies and procedures to Dealer's sales representatives and providing access to distributor's funds on Dealer's distribution platform.

Revenue sharing payments appear to present a conflict of interest for MMCSC and other dealers who participate in revenue sharing agreements. This conflict exists because the revenue sharing payments dealers receive from the sale of various mutual funds provides some degree of a financial incentive for dealers to offer customers the ability to buy and hold shares of certain mutual funds that they maintain and profit from selling on their distribution platform. However, MMCSC does not make recommendations on the mutual funds that are offered on our distribution platform. Instead, we are dedicated to providing our customers with a wide variety of investment options that are diverse and designed to meet the needs and interests of our customers and their investment objectives.

SEC Rule 606

Disclosure of order routing practices

Our clearing firm, Pershing LLC ("Pershing") has provided the data concerning the routing of order flow (the "Data") on this website. Although Pershing has used commercially reasonable efforts to provide accurate Data, the Data is provided to you on an "as is" basis.

If you would like to read this information, you will be required to enter the Broker-Dealer name ("MMC Securities Corp") when accessing the website. If you would like to enter the site now, please click here.

Extended-hours trading

Mercer Securities extended-hours trading sessions offer the ability to trade all securities for National Association of Securities Dealers Automated Quotation (Nasdaq®) National Market System (NMS) and Small Cap Issues, as well as equities traded on the New York Stock Exchange® (NYSE®) and American Stock Exchange® (AMEX®), both before and after the regular market session, 9:30 a.m. to 4:00 p.m. (Eastern Time). Increased trading opportunity means increased ability to react to news and earnings reports that occur during pre- and post-market sessions. Commissions and rates for extended-hours trades are the same as during regular trading hours.

Refer to the following table for important information regarding extended-hours trading sessions:

	Pre-market trading	After-market trading
Session times	8:00 a.m. to 9:15 a.m. (Eastern Time) each business day.	4:15 p.m. to 6:30 p.m. (Eastern Time) each business day. For holidays, early exchange closing at 1 p.m. (Eastern Time) will result in a modification to extended trading time.
Allowable order types	Limit orders only.	Limit orders only.
Order size	Round lots (multiples of 100) only. Maximum order size of 99,900 shares per order.	Round lots (multiples of 100) only. Maximum order size of 99,900 shares per order.
Order duration	Orders entered are only in force for the trading session during which they were entered. Good-till-canceled (GTC), good-this-day (GTD), good-this-week (GTW), and good-this-month (GTM) orders are not allowed.	Orders entered are only in force for the trading session during which they were entered. GTC, GTD, GTW, and GTM orders are not allowed.
Securities available	Nasdaq NMS, Small Cap Issues, NYSE, and AMEX securities are eligible for trading. Over the Counter Bulletin Board (OTCBB), Pink Sheets, and securities traded on foreign exchanges are not eligible for extended-hours trading.	Nasdaq NMS, Small Cap Issues, NYSE, and AMEX securities are eligible for trading. OTCBB, Pink Sheets, and securities traded on foreign exchanges are not eligible for extended-hours trading.

Click on the following links for more information on Mercer Securities extended-hours trading:

How Mercer Securities executes extended-hours trades
Types of orders that can be placed during extended-hours trading
Short sales during extended-hours trading
Duration of orders placed during extended-hours trading
Margin requirements for extended-hours trading
Risks associated with extended-hours trading

How Mercer Securities executes extended-hours trades

Mercer Securities executes extended-hours trades by entering orders into an electronic communications network (ECN) or participating exchange. The respective marketplace will automatically match client buy and sell orders, provided the bid and ask prices of the respective parties match. In addition, markets may be linked to other electronic trading systems in order to improve the opportunity for your order to be executed.

Types of orders that can be placed during extended-hours trading

Only limit orders may be entered with a minimal round lot of 100 shares. Other types of orders and order qualifiers, such as market, stop, all-or-none (AON), and fill-or-kill (FOK) are not currently available. The maximum order size is 99,900 shares per order.

Short sales during extended-hours trading

Short sales are permitted during extended-hours trading sessions. An affirmative determination is required to verify that the security is available to borrow. For listed securities, the up-tick rule may apply. Short sales for over-the-counter (OTC) securities are also acceptable during extended-hours trading. The bid test currently does not apply for OTC securities during extended-hours trading. Therefore, OTC stocks may be sold short without reliance on the inside bid.

Duration of orders placed during extended-hours trading

Orders placed during extended-hours trading sessions are only good for the session during which the order is placed. If the order is not executed during a specific extended-hours session, the order expires at the end of that session and does not roll into the next regular hours or extended-hours session. Similarly, orders from the regular trading session do not roll into the extended-hours session. Orders not yet executed can be canceled in the same manner as regular session orders, before the close of that session.

Orders executed during an extended-hours session are considered to have been executed during that day's regular session for settlement and clearing purposes. Settlement dates for extended-hours trades follow the same rules as for regular-hours trading, which is typically three business days after the day on which the transaction occurred. For instance, if your pre-market order to buy is executed on Monday, the 23rd of the month, the settlement date is Thursday, the 26th of the month, and payment is due at that time.

Margin requirements for extended-hours trading

Margin requirements remain the same as during regular trading hours. A stock's margin eligibility during extended-hours sessions is computed using the closing price of the previous regular market session.

Risks associated with extended-hours trading

As with any securities trading, there are risks. Additional risks associated with extended-hours trading include:

Risk of timing of order entry

All orders entered into and posted during extended-hours trading sessions must be limit orders. You must indicate the price at which you would like your order to be executed. By entering the price, you will not buy for more or sell for less than the price you entered, although your order may be executed at a better price. Your order will be executed if it matches an order from another investor or market professional to sell or purchase on the other side of the transaction. In addition, there may be orders entered ahead of your order by investors willing to buy or sell at the same price. Orders entered earlier at the same price level will have a higher priority. This means that if the market is at your requested price level, an order entered prior to your order will be executed first. This may prevent your order from being executed in whole or in part.
Risk of execution pricing

For extended-hours trading sessions, quotations will reflect the bid and ask currently available through the utilized quotation service. The quotation service may not reflect all available bids and offers posted by other participating ECN's or exchanges, and may reflect bids and offers that may not be accessible through Mercer Securities or respective trading partners. This quotation montage applies for both pre- and post-market sessions.

Systems are not all linked; therefore you may pay more or less for your security purchases or receive more or less for your security sales through a participating ECN or exchange than you would for a similar transaction on a different ECN or exchange.
Risk of communications delays or failures

Delays or failures in communications due to a high volume of orders or to other computer or system problems, including Internet delays, may cause delays in, or prevent the execution of your order. Any communication or computer problems experienced by Mercer Securities, its designated order manager, and/or participating ECN or exchange may prevent or delay the order from being executed. Mercer Securities reserves the right to temporarily or permanently close an extended-hours trading session without prior notification in case of system failures or unforeseen emergencies. Mercer Securities will not be held liable for missed executions in the case of a system failure.
Risk of lower liquidity

Liquidity refers to the ability to buy and sell securities. Generally, if there are more orders available in the market, then the security is more liquid. Due to limited trading activity in the extended-hours trading sessions, the liquidity in these sessions may be significantly less than during regular market hours. Lower liquidity may prevent your order from being executed in whole or in part, or from receiving as favorable a price as you might receive during regular trading hours. In addition, lower liquidity means fewer shares of a given security are being traded, which may result in larger spreads between bid and ask prices and volatile swings in stock prices.
Risk of trading halts

News stories may have a significant impact on stock prices during extended-hours trading sessions. The Securities and Exchange Commission (SEC), the National Association of Securities Dealers (NASD®), or one of the stock exchanges may impose a trading halt when significant news has affected a company's stock price. Any SEC, NASD, or exchange imposed trading halt will be enforced. Pending orders for a security will be held upon imposition of a trading halt for that security and reinitiated upon resumption of trading during that session.
Risk of duplicate orders

There is a risk of duplicate orders if you place an order for the same security in both an extended-hours session and the regular trading session, even if that order is a day order. Orders executed during regular trading hours may not be confirmed until after the post-market extended trading session has already begun. Similarly, orders executed in the pre-market session may not be confirmed until after regular trading has begun.
Risk of partial executions

Mercer Securities only accepts round lot orders during the extended-hours sessions. As noted previously, these orders are entered through a participating ECN or exchange, which may be linked to other electronic trading systems and, under special circumstances, the Nasdaq Montage. Some trading systems allow their users to submit odd lot or mixed lot orders. Because you cannot add qualifiers to an order, such as AON or FOK, a round lot order may be filled in part by an odd lot or mixed lot order, leaving stock left over to buy or to sell. There is a risk that the remaining order may not be filled during the extended-hours session. An odd lot or mixed lot portion of an order may not be represented. This would occur in instances when a round lot order has an execution leaving an odd lot. Depending on the particular trading system, it may not be possible to commingle multiple odd lot orders to create a rounded lot for representation. There are no execution guaranties for an odd lot or mixed lot portion of an order.

Client complaint contact information

If you have a complaint related to your Mercer Securities account, please contact:

MMC Securities Corp.
Attn: Chief Compliance Officer
121 River St., 8th Fl.
Hoboken, NJ 07030
Tel. No. : (212) 345-5000

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