Notice for Agents on Nonrecourse Stock Loans
Please note that it is a violation of your Agent contract with A. B. Nicholas to offer any form of nonrecourse stock loans on your website, in an email, or anywhere else. Individuals who are known to have referred clients into any such program or who have such materials on their websites will be considered in breach of the affiliate agreement and terminated immediately.
It is the firm position of A. B. Nicholas that nonrecourse stock loans — which involve the transfer of a client’s title and ownership to a usually unlicensed, unaudited lender or individual who sells the securities to fund the “loan” — are illegal. A discussion of this type of loan program has been written up at the old website hedgelender.com if you would like to go more deeply into this.
We will be reviewing affiliate websites periodically to ensure that no current agent is marketing or promoting nonrecourse stock loans. If you have any such material on your website, please update and remove it immediately.