Equity Linked CDs
Several advisors have recently mentioned possibly selling Equity-Linked CDs to their clients. Equity-Linked CDs are structured products and therefore, like reverse convertibles, require additional steps before selling.
1. Advisors must complete two (2) courses through Incapital and send the completed certificates to Compliance:
a. Principal Protected Products
b. Suitability and Risk Considerations.
2. The client(s) must be approved for options trading.
3. The client(s) must sign the Equity-Linked CD Disclosure Form and return it to Compliance. The Form may be found at this link: https://investmentplanners.securevdr.com/d-s24c9d07139e42dc8
Here is some additional general information on the product: