Training your client
It is essential you educate your client on processes and
procedures. You can do this using the grain bible, historical data,
and approved marketing materials. You also need to be sure your
client understands the importance of and procedure for echo
signing forms. Remind your client every time you speak to them
what to expect or watch for, and the timeframe in which they need
to complete the task. Other things they need to be aware of
would be LEI’s, LEI renewals and Margin Calls.
Cover the following items with each client:
> Communication methods
> Updating their Farm Plan and the Importance of
> Products Offered and developing the plan
> Importance of sticking with the plan
• Specialized Over-the-Counter hedging products
• Marginless Hedging Programs
• Crop Insurance
• Online Farm Plan Tracking
• Mechanics of what we do video
> E-Signing Documents
> Confirms – Confirmations must be signed by client
within 48 hours. Confirms are sent by home office
upon verifying all information matches to a trade or
offset. It is the brokers responsibility to communicate
that the trade has taken place, the confirm has been
sent out and needs to be signed immediately, as well as
training your client how to echo sign docs.
> LEI’s and Renewals
ARC will cover the initial cost of obtaining the LEI number. Renewals will be charged to the client.
> Margin Calls and Account Funding (see page 50 of the
ADMIS Compliance Manual)
Procedure / day 1 – Clients must be educated on Margin. Margin calls are on your equity run and are sent out every morning. Your clients need to be contacted immediately and margin is due within the same business day. Use the Margin form on your home page to report push or pull to the ARC Back office.
The ARC Group prohibits anyone other than the recognized ARC account holder from funding an ARC account. Simply stated, the funding for an account at ARC should be through a bank account with the same name and tax ID. If either the ARC account or bank account is in a “doing business as” (“DBA”) name, be sure to have the account names on both sides reflect those names.
ARC will disburse funds in the name of the ARC Individual Account. This means we will not send out funds in the name of any other person or party. It also means for ACH instructions the voided check must show the Individual ARC Account owner as a remitter on the check. However, if the check is from a Joint bank account the remitter information must read as ‘and/or’, not just ‘and’. As an example, Joint ARC Account for John Smith and Mary Smith: a check where the remitter info reads as ‘John Smith and/or Mary Smith’ is acceptable; a check where the remitter info reads as John Smith and Mary Smith is not acceptable.
Another noteworthy item to include is that as of late, checks stating “Farm Account” have been flagged as potential “third-party funding”, raising anti-money laundering concerns by referencing a possible DBA name therefore requiring a DBA Representation Letter and W-9 be completed.