Mercantil Commercebank Investment Services Inc. (Mercantil CIS) is a financial institution registered in the United States specialized in investment advisory and brokerage.
Mercantil CIS is a subsidiary of Mercantil Commercebank N.A., national bank registered in the United States with 30 years of service affiliated to Mercantil Servicios Financieros (MSF). Mercantil CIS has the pleasure of presenting this Quick Reference Guide where you can find answers to frequently asked questions.
Contact Information
Hours of Operation
Monday to Friday 9:00 a.m. to 5:00 p.m. (EST)
Holidays
Mercantil CIS is not open for business during these holidays:
| New Year's Day |
January 1st |
| Martin Luther King Day |
Third Monday in January |
| Presindent's Day |
Third Monday in February |
| Good Friday |
Easter Good Friday |
| Memorial Day |
Last Monday in May |
| Independence Day |
July 4th |
| Labor Day |
First Monday in September |
| Thanksgiving Day |
Fourth Thursday in November |
| Christmas Day |
December 25th |
Telephones
Central: 1-305-460-8599
U.S. toll free line: 1-800-320-2819
Venezuela toll free line: 0-800-100-5985
Facsimile (Fax)
1-305-629-1660
Remember to state your name and your Financial Advisor’s
Mail
For regular mail or for messenger's prepaid service.
Attention: Your Financial Advisor's Name
Mercantil Commercebank Investment Services, Inc.
220 Alhambra Circle, Penthouse
Coral Gables, FL 33134
USA
Electronic Mail (E-mail)
Send it to your Financial Advisor’s e-mail address, if not to info@mercantilcis.com
Please state always your name as well as your Financial Advisor’s.
For your own security Mercantil CIS does not accept any e-mail orders or instructions.
Internet
Information and account access
For general information and account access visit: www.mercantilcis.com
Your Financial Advisor will assist you in selecting your User ID and Password.
Remember if you have more than one account, they could be grouped under one Password.
Password
To reestablish your personal password, please contact your Financial Advisor.
Access Problems
To avoid technical problems when accessing your account, please download the most recent version of your Internet browser.
Transfers
Fund transfers to your Mercantil CIS account.
Funds transferred to your Mercantil CIS account must be sent to:
The Bank of New York
ABA 021000018
A/C Pershing LLC
A/C # 890-051238-5
FFC Nombre del cliente*
Customer account number*
*It is very important to complete these fields to be sure your account is credited.
Funds Transfer to third parties from your Mercantil CIS account
Mercantil CIS does not allow direct fund transfers to third parties. Instead you can transfer the funds to your bank account and from there to third parties. You can also ask your Financial Advisor to draw a check payable to a third party.
Transfer of negotiable instruments to your Mercantil CIS account
Each type of negotiable instrument and its current custody place determine the instructions format required to make transfers to your account.
A complete transfer between two brokers in the United States can be done in one step through an ACAT application and a copy of the last statement. For partial transfers certain specific instructions would be required. For more information contact your Financial Advisor.
Income
Stock Dividends
Each company has its own policy of amount and frequency of dividend payments.
Shareholders at record date are eligible to receive dividends on the next payment date. From the date of transaction without dividends (ex-dividend date) buyers are not eligible to receive dividends and share price could be adjusted accordingly.
Mutual Funds Dividends
When purchasing mutual funds there is an option between reinvesting dividends or receiving cash. If you decide to reinvest dividends, these will be used to buy additional shares in each payment date.
For information on the frequency, type and amount of dividend payments for a specific fund, refer to the corresponding prospectus or contact your Financial
Advisor.
Coupon payments frequency
The most common coupon payment frequency is semiannual. However, there are bonds with other payment frequencies, weekly, monthly, quarterly, yearly.
Accrued Interest
The purchaser of a bond between interest payment dates must compensate the seller for accrued interest not collected. This amount is added to the purchase value obtained according to the agreed price and the nominal value.
Delays in coupon payment
Although coupon payments are usually on time, their receipt may be delayed due to operational procedures. Non-payment of coupons takes place only if coupon has not been received within 30 days after the scheduled date.
Statements
Transactions in marketable instruments
Purchase or sale transactions usually appear reflected in the account within three business days.
Negative signs on the Internet
Mercantil CIS online platform uses a reverse accounting system reflecting
deposits with a negative sign and debits with a positive sign without having any effect on your statement balance. Statements received by mail reflect the deposits and debits under the standard system.
Questions to understand your statement
Investment account statements often include a lot of information and can be a bit complex at first. For your convenience we recommend that you ask your Financial Advisor for our instruction booklet "How to read your statement".
Ownership of investment accounts
Investment accounts with more than one owner not residing in the U.S. are set as joint owners with right of survivorship, known in English as “Joint Tenants with Right of Survivorship” JTWROS.
How to include another account holder on an account
To include another person on your investment account, it is necessary to:
- Complete and sign the required application
- Submit all documents necessary for opening
- Show you are 18 years old or older
- Contact your Financial Advisor
How to include a beneficiary
All Mercantil CIS accounts allow designating a beneficiary. This request is processed by completing the required document (Joint or Individual Transfer on Death). For more information contact your Financial Advisor.
Taxes
Form W-8BEN
Form W-8BEN identifies customers residing in another country. This form must be completed and signed every three years by account holders. Not having a valid W-8BEN form could result in withholding of taxes on certain income. For more information please contact your Financial Advisor or refer to Internal Revenue Service publication # 515 (Internal Revenue Service (IRS): Withholding of Tax on Nonresident Aliens and Foreign Entities) http://www.irs.gov/pub/irs-pdf/p515.pdf
Report on income received in the account
If you live abroad, at the beginning of each year the custodial agent of Mercantil CIS will send you Internal Revenue Service (IRS) Document 1042. The purpose of this document is only informative and includes income originated in the United States during the previous calendar year.
Retention on dividends received
Dividends generated in the United States received by foreign customers are subject to withholding tax at a rate of up to 30%. Certain tax treaties provide lower retention rates. For additional information contact your Financial Advisor or refer to Internal Revenue Service Publication # 519 (Internal Revenue Service- IRS:US Tax Guide for Aliens)
http://www.irs.gov/pub/irs-pdf/p519.pdf
Changes on your Contact Information
Notification of changes in mailing address
Customers who have changed their mailing address should send their Financial Advisors an explanatory letter, updated form W-8BEN and copies of a current and valid ID issued by the government of their country, for each account holder
Notification of changed in telephone numbers and e-mail address
Mercantil CIS customers who have new telephone numbers or e-mail addresses must report them to their Financial Advisor to update our records.
Investment Account Results
All advisory accounts include Portfolio Evaluation Services (PES). This service allows you to maintain cost records per tax lot and calculate rates of return, both absolute and compared with relevant reference indexes.
The service includes a quarterly performance report.
For a modest additional fee, brokerage customers can add Portfolio Evaluation Service.
Financial Protection
Assets security in the event of fraud or bankruptcy
As an institution based in the U.S. Mercantil CIS is regulated by the Financial Industry Regulatory Authority (FINRA): http://www.finra.organd by the Securities and Exchange Commission – SEC:http://www.sec.gov/ )
Mercantil CIS is a member of the Securities Investor Protection Corporation- SIPC http://www.sipc.org) SIPC safeguards client assets up to $ 500,000 of which up to $ 100,000 can be cash. SIPC does not protect instrument loss of value, only protects assets integrity.
Service Fees
Mercantil CIS service fees vary depending on service and /or type of transaction.
- Charges for advisory services are usually assessed as an annual percentage on the basis of assets involved. These charges are deducted quarterly from the investment account or from the bank account at Mercantil Commercebank, N.A. or its affiliates.
- Fees for transactions where Mercantil CIS acts as Broker, are subject to commissions that in their majority, are proportional to the transaction amount. These charges are debited when the transaction is completed.
- Transactions where Mercantil CIS operates as principal are subject to markups or mardowns in price.
- Miscellaneous transactions (transfers, custody, etc.) are subject to fixed rates for each particular case. Ask your Financial Advisor for an updated service charge brochure.
Additional Compensation from Products or Suppliers
Mercantil CIS is entitled to receive initial and/or periodical compensation as payment for certain products distribution. On the other hand certain primary market issues include, normally in the price, a sale concession. Mercantil CIS could also receive part of the financial cost of margin loans extended to customers.
Complaints
Oral complaints
Mercantil CIS suggests to make complaints by direct telephone contact with a Supervisor, calling any number on the contact list.
Written complaints
You can send a written complaint via fax to 1-305-629-1660, or by mail to the attention of the compliance officer:
Mercantil Commercebank Investment Services, Inc.
Atention: Compliance Officer
220 Alhambra Circle, Penthouse
Coral Gables, Florida 33134
USA
Disclosures
This publication and its contents do not constitute a solicitation to buy or sell negotiable instruments.
Investments through Mercantil CIS are not insured by FDIC or any other government agency. These investments are not bank deposits so price may fluctuate and could lose value. Some investments through Mercantil CIS include penalties for early withdrawals.
Mercantil CIS is not a tax advisor. Ask your tax advisor or accountant before making any investment.
All information presented was considered correct at the date of its publication, however, by its very nature it can change at any time
Insvestments are not bank deposits, they are not insured by FDIC or any other government agency. Investments value can increase or decrease.
SIPC Member
