Frequently Asked Questions

Get the answers you need to make an informed decision.

General Information about your Cambria Account

Who Are Your Clearing Firms?

Cambria Capital has selected COR Clearing, LLC and Folio Investments, Inc. as its clearing agents to act as custodian of customer assets and provide a variety of back office services to the firm and its clients. COR or Folio will provide all of the standard reports such as customer statements, trade confirmations and tax forms. COR Clearing, LLC and Folio Investments, Inc are both members of FINRA and SIPC.

How are you compensated and when do you get paid?

We provide options so you can decide what makes sense for your investments. We offer a commission-based fee each time you make a transaction or a management fee based upon a percentage of the value of the assets we manage.   The fee-based accounts are an annual percentage fee; billed quarterly by taking the value of the managed assets at the beginning of each calendar quarter and applying one-fourth of that annual percentage fee.

Are there any fees or maintenance charges required to keep my account open?

Cambria strives to provide quality services at competitive prices. Please see the attached fee schedules (1, 2) for information regarding account fees. If you have any questions about fees, please reach out to a Cambria representative.

What is the minimum amount I can invest?

For commission-based accounts we have no minimum investment.  Depending on the advisory program our minimum for fee-based accounts is generally $25,000.

Will I be able to view my account online?

Yes. In addition to any service the broker-dealer firm on your account may provide, we offer secure, password-protected service with quotes, news and company information to our clients who request online access to view their portfolio.

Am I locked-in? Are their termination penalties?

Absolutely not.  Other than retirement accounts there are no termination penalties with Cambria Capital. Advisory agreements are terminable on written notice at any time.

How will you communicate with me about my account? Will I receive notices or statements?

All of our clients receive quarterly and annual detailed brokerage account statements. Monthly statements will be provided only if there is activity for that specific period. We may also have occasional mailings and emails on topics of interest.  In addition, we provide investor update meetings and new product offering to our clients.  Most clients will talk with us at least several times during the year, and clients are encouraged to contact us by telephone, fax, or e-mail to discuss their investments or ask questions, or to schedule an appointment to meet with us at our offices.  All trade instructions must be taken verbally through COR Clearing or verbally or through the online trading platform with Folio Investments.

Will my account information remain confidential?

We believe that your wealth is an extremely private issue and your identity and financial records are kept strictly confidential. No mailing lists are sold, nor is any client information shared with outside firms unless directed by you. For more information, please see our privacy policy.

If you have any questions about your account objectives, please consult with a Cambria representative.

For accounts held with Folio Investments:

How do I establish an account with your firm?

To establish an account, just click here.

How do I transfer my existing account with another brokerage firm to your firm?

First, you will need to set up an account with Cambria.  Once your account is set up we will need the most recent copy of your brokerage account statement from the firm you are transferring the assets from.  In addition, we will have you sign an account transfer form “ACAT.”  Once the ACAT form is signed the assets will generally take about 3-5 business days to move over.

Must I sell everything and transfer only cash for you to manage my account?

No. In most cases, we can accept transfers of all the securities in your account. We would prefer that you transfer the securities to your new account with us, as we can help determine which assets to hold and will execute any necessary trades.

How do I fund my account?

Open your Accounts page and select Transfer Money from the Cash Activity Quick Links drop down menu. Select the method of deposit and follow the instructions given.

You can fund your account by:

-Wire transfer
-Electronic funds transfer (EFT)
-Direct deposit/payroll deduction
-Transfer of money between your accounts with us
-Check deposit

For check deposits to an IRA account, be sure to specify your account number, whether the funds are a contribution or a rollover, and the year of the IRA contribution (if applicable).

What if I forgot my username?

Select the Forgot Username link located next to the Username field on the Login page. Once you correctly verify your personal information, we will email your username to the email address that we have on record. If you do not receive this email, contact us.

What if I forgot my password?

If your password is not locked, you can reset your password directly from the Login page.
1.From the Login page, select Reset Password
2.Enter your username and select Continue.
3.Verify your email address shown and select Reset Password which will send a link to that email address, or contact Customer Service at 1-888-973-7890.

How do I change or update my personal information?

To change or update your personal information:

1.Select the Settings link
2.Select the Change button for the information you would like to change
For security reasons, the following information cannot be changed online:

Name 
To change the name on your account, mail us a letter explaining the reason for the change, along with a copy of a marriage certificate, divorce decree, or other court order (as applicable).

Date of Birth 
To correct your date of birth, mail us a copy of your birth certificate.

Social Security or Tax Identification Number 
To correct your social security or tax identification number, send us a letter explaining the reason for the change, along with a completed IRS Form W-9

Note: If you change your home address, we will not send any funds to the new address for (15) fifteen days. This allows us to confirm the address change and help to protect your account from fraud. Contact us directly if you need funds sent to your new address within (15) fifteen days.

Can I change my username?

Once set, you cannot change your username.

How do I change my account or Folio information?

1. Select the Settings link

2. Scroll down to the Account Information section and select the account or folio information you would like to change

You can make the following changes to your account and folio information:

– Account Name or Folio Name
– Cancel Order Limit
– Beneficiaries
– Security Exclusions
– Close Account
– Viewing Preferences

How do I close an account?

If an account has never held any cash or securities, you can easily delete it by following the steps below. You will not be able to access the deleted account again.

1.Select the Settings link
2.Scroll down to and select the Close Account link and then follow the on screen instructions
Contact us to close an account that has been funded.

How do I change my dividend reinvestment settings?

We allow for automated reinvestment of cash distributions, such as dividends, of $1 or more for all of the securities that are held in a folio. You can have either all securities in a folio reinvested, or all pay out in cash.

To change your reinvestment preference:

1.Select the Settings link
2.Scroll down to the Distribution Investment link to change your dividend reinvestment preferences for each folio

How do I allow others access to my accounts?

To grant, change, or delete access to your accounts, select the Authorized Access link on the right side of your Settings page, then select Grant Access and follow the instructions.

Account access can only be granted to current customers. The person or entity that you wish to grant account access to, such as your accountant or accounting firm, can open an account for no cost or obligation. As long as they do not fund that account, they would not incur any charges associated with the pricing plan they selected in the account opening process.

For accounts held with COR Clearing:

How do I establish an account with your firm?

The first and most important step is to contact a Cambria advisor to determine if you should set up a commission-based or fee-based account.  Please click here to select which type of account you would like to open.  A cover sheet with a checklist of the required items is on the first page of each account application.

How do I fund my account?

Once your account is opened, you will be assigned an account number.  You can fund your account by check or wire transfer.   Please click here to receive detailed payment instructions.

How do I transfer my existing account with another brokerage firm to your firm?

First, you will need to set up an account with Cambria.  Once your account is set up we will need the most recent copy of your brokerage account statement from the firm you are transferring the assets from.  In addition, we will have you sign an account transfer form “ACAT.”  Once the ACAT form is signed the assets will generally take about 3-5 business days to move over.

Must I sell everything and transfer only cash for you to manage my account?

No. In most cases, we can accept transfers of all the securities in your account. We would prefer that you transfer the securities to your new account with us, as we can help determine which assets to hold and will execute any necessary trades.

How do I change my address, telephone number or email address on my account?

Cambria will need written instructions to change any of the above.  Please click here for the appropriate form.  You may fax, mail or email a scanned copy of the changes to your representative.

Why might I need investment management services?

In today’s demanding and hectic world, many time-challenged investors choose professional management as the most effective means of building and preserving their assets. Our clients shift the decision-making process (what to buy and sell and when to do it) and burden of continuously monitoring their investments to our team of professionals, and value our independent and unbiased research. At Cambria Capital, our highly experienced staff is dedicated to meeting your financial needs.

What are the advantages of a privately managed account?

Privately managed accounts award you several advantages. They offer you a personalized portfolio created specifically for your unique situation.
At Cambria Capital, you have greater access to your portfolio manager than in the case of a pooled account, and you receive; trade confirms, monthly custodian statements, and quarterly portfolio summaries. Pooled accounts do not send trade confirms, so you are unable to monitor the activity in your account. Reports are typically prepared semi-annually and fund managers are not available to answer questions.
We manage your account with an eye towards your specific tax situation. We have the ability to harvest losses and avoid certain taxable events such as short-term gains. Pooled accounts may be disadvantaged when it comes to taxes as they may pay out capital gains each year, and may not distribute capital losses.

General Questions

What is a REIT?

A real estate investment trust, or REIT, is a corporation, trust or association that owns (and might also manage) income-producing real estate. REITs pool the capital of numerous investors to purchase a portfolio of properties—from office buildings and shopping centers to hotels and apartments, even timber-producing land—which the typical investor might not otherwise be able to purchase individually.

REITs can offer tax advantages. For instance, qualified REITs that meet Internal Revenue Service requirements can deduct distributions paid to shareholders from corporate taxable income, avoiding double taxation. The REIT must also distribute at least 90 percent of its taxable income to shareholders annually. These distributions are taxable to the extent of any ordinary income and capital gains included in the distribution.

There are two types of public REITS: those that trade on a national securities exchange and those that do not. REITs in this latter category are generally referred to as publicly registered non-exchange traded, or simply non-traded REITS.

What is restricted stock?

Stock issued directly from a company that is not fully saleable until certain conditions have been met. Upon satisfaction of those conditions, the stock becomes saleable by the person holding the security.

What is Rule 144?

When you acquire restricted securities or hold control securities, you must find an exemption from the SEC’s registration requirements to sell them in the marketplace. Rule 144 allows public resale of restricted and control securities if a number of conditions are met.

What is a 10b5-1 Selling Plan?

Sec Rule 10b5-1 allows officers and directors the flexibility to sell stock at all times, not just during open trading windows.  Often executives are hampered by blackout periods and other types of insider trading regulations.

What is a Registration Statement?

A set of documents that discloses important financial information regarding the registration of securities, including a prospectus, which is filed the SEC so the shares can be sold under certain conditions in the public markets.

What is a PIPE, IPO, private placement or secondary offering?

A PIPE, also known as a Private Investment in Public Equity, is a way for companies to raise capital in the public markets in timely and most cost efficient manner.  An IPO, also known as an initial public offering, is the first time a company issues shares to go public.  A private placement is an offering of securities that are not registered with the SEC.  A secondary offering is the issuance of shares from a company that has already done its initial public offering (IPO).

What are options?

An option is a contract written by a seller that gives the buyer the right, but not the obligation to buy or sell a particular security over a specific amount of time.

What is a dividend?

Are payments made by companies to it shareholders from the profits of their business.

What is an ex-dividend and record date?

The ex-dividend date is the day on which all shares bought or sold no longer have the right to pay a shareholder the most recently declared dividend.  The record date is the day shareholders properly registered to receive their dividend.  Shareholders who do not register as of this date will not receive the dividend.

What are fixed income securities?

Securities that yield a regular or fixed return. Bonds, preferred stock and government issued instruments are all types of fixed income securities.

What is the major differences between common and preferred stock?

Preferred stockholders have greater claim to the company’s assets and earnings than common shareholders.  Second, the preferred stockholders dividends are generally different and greater than the common shareholders.

What is an Accredited Investor?

Accredited investors are persons who, due to their income and/or net worth, are deemed to have a level of financial sophistication such that they require a lesser level of protection under the federal securities laws. With regard to individuals, a person shall be deemed to be accredited if they meet at least one of the following categories:

Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;

Any natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of his purchase exceeds $1,000,000, exclusive of residence; or

Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year.

What is The JOBS Act?

Written with the intent to encourage funding of small businesses during the initial public offering process, the Jumpstart our Business Startups Act (the “JOBS Act”), as signed by President Obama on April 5, 2012, reduces the regulatory burden on small companies seeking to raise capital in the U.S. through revisions to the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”). As a result, smaller issuers can now take advantage of improved opportunity for public financing and development during their initial years as a public company.  Private companies also benefit from the JOBS Act as a result of several changes to the Securities Act, including the ability to generally solicit and advertise in connection with private placements of securities.

What is Suitability?

Suitability is the determination that a particular investment strategy meets the objectives and means of an investor. It goes beyond just the financial resources of an investor to participate as an accredited investor in, for example, a private placement, but also encompasses the appropriate knowledge and understanding of risk. Investing in the stock market is speculative and investors should understand the risks associated with the investment and what is suitable for their investment objectives. Before making any investment in a Cambria Capital placed offering, an investor needs to establish his or her investment profile and to consider, for each investment, the product or strategy’s investment objectives, characteristics, liquidity risks and potential benefits, volatility and likely performance in a variety of market and economic conditions.

What are the risks of trading and investing?

All securities trading, whether in stocks, options, or other investment vehicles, is speculative in nature and involves substantial risk of loss.

Cambria Capital encourages its Customers to invest carefully and to use the information available at the websites of the SEC at http://www.sec.gov and FINRA at http://FINRA.org

Customers can review public companies’ filings at the SEC’s EDGAR page. FINRA has published information on how to invest carefully at its website. Cambria Capital believes it is very important that every Customer understands all of the risks of any form of trading or investing prior to trading or investing real dollars. Past performance is not necessarily indicative of future results. By investing their money in securities through Cambria Capital, Customers are taking full responsibility for all trading actions, and should make every effort to understand the risks involved including suitability. For additional information on suitability, please review the Suitability FAQ section.

What is SIPC or Supplemental Insurance?

Member of SIPC, which protects securities customers of its members up to $500,000 (including $200,000 for claims for cash). Explanatory brochure is available upon request or at www.sipc.org.

Cambria Capital, LLC clears its brokerage business through Folio Investments and COR Clearing. In addition to SIPC coverage, our clearing firm, Folio Investments, has also purchased from certain underwriters at Lloyds supplemental customer securities insurance with a total aggregate limit of $50 million. This coverage is limited to a combined return of $10 million to any customer from SIPC and certain underwriters at Lloyds. COR maintains an insurance policy through Lloyd’s of London, which provides account coverage up to $24.5 million (including up to $900,000 in cash) per client as defined by SIPC rules. In short, combining the SIPC and COR’s Lloyd’s of London coverage results in account protection up to a total of $25 million per client (as defined by SIPC rules) including up to $1 million for cash balances. Neither SIPC nor the insurance coverage protect against losses resulting from a decline in the market value of securities.

What is the difference between Reg D 506(b) and Reg D 506(c)?

Rule 506(c) is a new exemption that originated from the JOBS Act that allows general solicitation and general advertising in connection with private placements of securities. Rule 506(b) is the exemption that companies have used for decades to raise capital from pre existing relationships without the use of any advertising or general solicitation. Companies can now choose between 506(b) or 506(c). The main difference with 506(c) is the higher standard for ensuring that every investor is accredited. For both 506(b) and 506(c), you should have a “reasonable belief” that an investor is accredited before accepting their investment. With 506(b), founders often take the investors own word, and take relatively few steps toward verifying it. That standard isn’t good enough for 506(c); you must also take “reasonable steps” to verify that your investors are accredited which include review of financial statements, tax returns or professional letters from lawyers, CPAs, registered investment advisers or brokers. If the rules of 506 (c) are not properly followed, the violation can lead to a one year hold on your fundraising efforts and a return of capital to investors.

For more, visit www.sec.gov/info/smallbus/secg/general-solicitation-small-entity-compliance-guide.htm