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TrainingManualUpdated11292016

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TableofContentsSection1–TheARCGroup PurposeofTraining 5YourRolewithARC 5WhoWeAre 6

Section2–GeneralInformationTrainingScheduleandOngoingEducation 9PerformanceReviews 9YourHomePage 9Questions 10PotentialIncomeStreams 11Payouts 12

Section3-MarketingMarketingExpenses 14TheARCWebsite 14Branding 14Radio/TV 14Mailings 15Brochures 15Email 15SocialMedia 15ColdCalling 16

Section4–ClientProcessClientMeetings 18OnboardingyourClient 19

- Process 19 - TrainingyourClient 20

o FarmPlano Toolso EchoSigno Confirmso LEI’s&Renewalso Margin

- CustomerService 22

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TableofContentsContinued

Section5–TradeEntryProcessHowtoEnterTrades

- NewTrades 24- Offsets 24- GrainDealers 24

Section6–ComplianceADMISManual 26SpecAccounts 26PhoneCalls 26BranchAudits 27NFAManual 27RequiredTraining/Documents 29EquityRuns 29

AppendixForms

- ProspectMeetingNotes 31- ClientInformationForm 33- RiskConsultingAgreement 34- RiskConsultingInvoice 35

RecommendedCustomerContactTimeline 36ProcessFlowCharts

- ConsultingFees/Deposits 37- NewTradeEntry 38- OffsetEntry 39- Confirmations 40- GrainDealers 41

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Section1

TheARCGroup

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PurposeofTrainingWelcometotheARCGroup.Weareexcitedtohaveyoujoinourteam!Thismanualhasbeendevelopedtoexplainproducts,processesandprocedures.Withthistraining,youwilllearnaboutproductsofferedbyTheARCGroup,themethodologybehindtheproducts,howtoonboardaclient,communicatewithTheARCGroupbackoffice,entertrades,andaccessreports.Youwilllearnaboutourmarketingstrategies,receivecomplianceinformationandresources,andfindtrainingandlicensingrequirements.YourRolewithARCAsanindependentcontractor,youwillbeanAPoftheARCGroup.YouwillberegisteredassuchandarerequiredfulfillallrequirementssetforthintheADMISCompliancemanualaswellascompletetheNFASelf-ExamQuestionnaireasrequiredbyADMIS.BrancheswillbeauditedbythehomeofficeonanannualbasistomakesuretheserequirementsarebeingmetandinsurecorrectiveactionsarebeingtakenasnecessarytobringBranchOfficeintocompliance.PleasereviewyourIndependentContractorAgreementifyouhaveanyquestions.AsanIndependentcontractor,youarerequiredtopayforyourownlicensing&registrations,thecostsofmaintainingyourbranchofficeandanymarketingbeyondwhatisprovidedbyARC(mustbeapprovedbytheHomeOffice).

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WhoWeAreWeprideourselvesondeliveringthebest.Ourvastexperienceandexpertiseunitestodeliversuccessful,strategicresultsthatultimatelyachievethegoalsofourclients.

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TheAgriculturalRiskConsultingGroupLLCisacommodityconsultingfirmspecializinginmanagingtherisksinherentinproductionagriculture.TheARCGroupwasformedinSeptember,2003byagroupofbrokers/consultantsthatbelievedcommodityriskshouldbemanagedbydevelopingasound,personalizedgrainmarketingplanOurphilosophyisthatriskshouldbemanagedbycreatingaconsistentstrategytodealwiththeinevitableuncertaintyoftoday’svolatilemarkets.TheARCGroup’sgoalistohaveaplaninplacethatminimizesriskandmaximizesprofitoverthelongterm.Sinceitisimpossibletopredictmarketsinthelongterm,wefeelitismoreimportanttoexecuteaconsistentapproach.Executionsometimesprovesdifficult.Ourclientsrelyonustoexecutetheirplanfromstarttofinish.

Goal:Tominimizeriskandmaximizeprofitfortheclientoverthelongterm.

KeyActivities:Workingoneononewiththeclientwecustomize,implementandexecutea

soundandconsistentprogramforindividualoperationsindependentofallend-users.

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Section2

GeneralInformation

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TrainingandOngoingEducation

TrainingwillbeprovidedforIndependentContractorsuponhire.ARCwillprovideBrokerswithupdatedandongoinginformationandeducationinthefollowingcases:

1 Annuallythroughbranchaudits2 WhenwearenotifiedofchangesthroughADMISandNFA3 WhenanIndependentcontractorfailstocomplywith

policiesandproceduresofTheARCGroup,ADMISand/ortheNFA.

4 MonthlyduringBrokerMeetings–MeetingswillbeheldonthefirstThursdayofeverymonthfrom2-4pmunlessrescheduledbymanagement

Wehighlyrecommendseekingoutmotivationaltoolsandresources.Someofourfavoritesbooksare:

- TheSlightEdge- 10X- HabitsofHighlySuccessfulPeople- FooledbyRandomness

PerformanceReviews

PerformanceReviewswillbeconductedannuallybyanappropriatePrincipaloftheARCGroup.Often,thesereviewswillcoincidewithbranchaudits.PerformancereviewsmayhappenmoreoftenthanonceayearifdeemednecessarybytheARCGroup.

YourHomePage

AsaGrainMarketingConsultantwithTheARCGroup,youwillbeprovidedwitha“HomePage”.Thishomepagewillbeaplacetolocateforms,reports,andresourcesthatyoumayneedaccessto.Thispagecanbemodifiedwithadditionalinformationorsimplyreorganizedtosuityourneeds.Ifyou’dlikeitsetupdifferentlyorwantitemsaddedordeleted,pleasesendaveryspecificanddetailedemailtoColleen@agrisk.netandIwillbehappytoaccommodateyou.

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QuestionsThereisalinkonyourhomepagetohelpyouunderstandwhocouldbestansweranyquestionsyoumayhaveandwhereyoushoulddirectcommentsandsuggestions.Cathy–ext.200• GrainSettlements• ADMISapplications• Margincalls• Marginreturns• WiresOut–ccJustin• ACH’sOut–ccJustin• Deposits• Formsneeded• Generalquestions…• ADMQuestionsColleen–ext.126• Entryerrorsonformsystem• Problemswithforms• Questionsonreports• Suggestions,requestsorpersonalizationofreports• WeeklyMeetings• Monthlymeetingagendaitems• Salesmaterialideasorrequests• LEI#’s• EnhancedAverages• ThingstoincludeinNewsfromtheOffice• Websiteadmin• HomePageadmin• AddingNewCounterpartytoOTCSystem• SendingConfirms• ComplianceIan-ext.130• AnyOTCquestionsJustin–ext.121• Payouts• Cashgrainquestions• HedgetoArrives• Wires&ACH’sOut• CropInsuranceJay–ext.135• TechnicalassistanceonTradeManagementSite

o Takeascreenshotoferrorsandsenddetailedinformationofhowyoureceivedtheerror(stepbystepclickinformation)toJayRagsdaleatjragsdale@agrisk.net

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PotentialIncomeStreams

Fromyourhomepage,youcanaccessalistofwaystomakemoneyattheARCGroup:

- ConsultingFees(seeConsultingAgreement)o $0.04perbushelofcorno $0.04perbushelofmiloo $0.08perbushelofbeanso $0.06perbushelofwheato $0.0015perpoundofcanolao $3.50perheadoncattle

- ChicagoBrokerageCommission

o Options$40upfront(-7.50fee)o Futures$20in,$20out(-3.75perside)

- Graindealer’smarkup–HTA+CashTrades+CHSo HTA’s–recommend0.01/bu(ifARCcharges

$.07,youcharge.08)o Rolls–recommend0.01(ifARCcharges$.01

youcharge.02)o CashTrades–cansettleormarkupCHS

recommend(.01-.05)unlessfeepayingclient

- OTCmarkupo EA’S-Recommendupto.04markupplus.01

commission/bu(EApricingissentdailyinthemorningtobrokers)

o Recommend.01commission/buonDSA’s,VanillaOptions,VanillaSwaps

- CropInsurance–ARCGrouphasanInsuranceLicenseo Askfordetails

- MikeNebeno Askfordetails

Theminimumfeeis$3,000.00;ARCrecommendssettingamaximumfee(typicallybetween$10,000-$15,000)basedonyourareaforlargerclients.Thisfeewillbepaidannually.ThetotalfeedueissubjecttoAnnualpaymentsduewithin30daysofbillingdate.Balances60dayspastdueshallaccrueinterestat1.33%permonth,orthemaximumamountallowablebylaw.

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PayoutsPayoutreportsareupdatedautomaticallyuponformentry.Reportsmustbereviewedbybrokerforaccuracynolaterthanthe5thofthefollowingmonth.CompletetheReportsReviewedFormwhichwillnotifythebackofficeofanyquestionsorconcernsinadvanceofpayoutdate.BankDeposits/ConsultingFees-Consultingfeesareenteredintoaformatthetimeofbillingyourclient.WhenpaymentisreceivedandprocessedattheMainOfficethepaymentwillbematchedtothefeeandapayoutwillbetriggered.GrainDealersPayouts–GrainDealerfeesandmarkupareenteredintoaformatthetimeoftrade.WhenthesettlementprocessiscompletedbytheMainOfficetheBrokerPayoutwillbetriggered.Payoutsforpreviouscalendarmontharemadeonthe15thdayorthefirstbusinessdayfollowingaholidayorweekendofthefollowingmonth.ACHTypicallyappearsinyourbankaccount24-48hoursafterthepayouthasbeensent.

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Section3

Marketing

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MarketingExpensesThepaymentforexpensesassociatedwithcreatingnewpromotionalmaterialsincludingdesign,print,and/oradspacewillbeassumedbytherepresentativerequestingthematerialsunlessapprovalisgrantedinadvancebytheHomeOffice.

TheARCWebsiteAgriskconsulting.netisourclientfacingwebsite.ThissiteprovidesabasicoverviewoftheARCGroupandourphilosophiesaswellasaroadmapofwhatitlooksliketoworkwithamarketingadvisorfromtheARCGroup.Also,foundontheclientfacingsiteismarketdata,radioweekendrecaps,acalendarofeventssuchasourannualgolfoutingandscheduleofthetradeshowsweattend.

BrandingAllAP’sandbranchofficeswillusetheofficialnameandlogoofTheARCGroupLLConitemsincludingbutnotlimitedtosignage,contracts,letterhead,businesscards,mailings,andemailaddresses.Allitemsdistributedtoprospectiveclientswillusethislogoandthelogomaynotbechangedoralteredinanyway.

AdvertisingonRadio/TVAnyradioorTVadvertisingwillbearrangedandcreatedbythemainoffice.Radiospotsmaybepurchasedbybrokeratbrokerexpensewithapprovalfrommainoffice.Allcontentmustbeapprovedbymainofficeandcomplianceofficer.Contentmustbesubmittedforapprovalnolessthantenbusinessdayspriortofirstintendeduse.*

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MailingPieces

ARCGroupwillprovideapprovedpromotionalmaterialformailings.AnythingbeyondmaterialsprovidedbyARCwillbeattheexpenseofthebrokerandmusthaveapprovalfrommainofficeandcomplianceofficer.Submitforapprovalnolessthantenbusinessdayspriortofirstintendeduse.*

BrochuresandOtherPieces

AllmarketingpieceswillbeprovidedbyTheARCGrouptobeusedinclientmeetings,mailings,emailsandanyothermarketingeventsuchasfarmshows.Donotcreateyourownpieces.ThepiecesprovidedhavealreadybeenapprovedfordistributionbyTheARCGroupandhaveclearedcompliance.Ifatimeoccursforwhichitisappropriateforyoutocreateyourownmarketingpiece,itmustgothroughTheARCGroupandcomplianceproceduresbeforeitcanbeusedinanyway.Contentmustbesubmittedforapprovalnolessthantenbusinessdayspriortofirstintendeduse.*

EmailandSocialMedia

ARCrepresentatives,employeesandindependentcontractorsmustuseARCsponsoredorapprovedaccountsforallbusinesspurposes.Toclarify,ARCrepresentatives,employeesandindependentcontractorsmaynotuseunapprovedpersonalemail,instantmessagingorsocialmediaaccountstocommunicatewithcustomers.

ARCGroupprohibitsanyemployeeorindependentcontractorfromrepresentingthecompanyoractingonthecompany’sbehalfviaanysocialmediaplatform.**Ifyouareauthorizedtocreateyourownpromotionalmaterial,youmustreadandcomplywithPromotionalMaterial(NFAComplianceRules2-29and2-36)ANDcompletetheADMISpromotionalmaterialchecklist.YoucanfindthischecklistintheADMISCompliancemanualandmustsubmityourmaterialalongwiththischecklisttotheARCHomeOfficenolessthan10businessdaypriortothe1stintendeduse.Materialmaynotbeusedorpublisheduntilauthorizationisreceivedbythehomeofficeandcomplianceofficer.

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ColdCallingARCdoesnotcoldcallindividualprospectivecustomerswithoutwrittenapprovalinadvancefromtheARCComplianceDepartment;consequently,ARCdoesnotmonitornorhasitpurchasedasubscriptiontotheNationalDoNotCallRegistry.AnyassociateofARCwhointendstoutilizecoldcallingasamethodtosolicitcustomerbusinessmustfirstapplyforapprovalfromtheARCHomeOffice.IfapprovalisgrantedyoumustcheckallmarketinglistsagainsttheFTCnationaldonotcallregistryonyourown.Youcansearchupto5areacodes.AllmarketinglistsmustbesenttoandapprovedthroughthemainofficeandcomparedagainsttheARCGroupDoNotCallDatabase.Anycontactswithcoldcallsmustberecordedalongwithnotesabouttheconversation,anypromotionalmaterialsgivenorsenttoprospectsmustalsoberecorded,anyelectroniccorrespondencemustberetainedfornolessthan5yearsandbedonethroughanapproveddevice.PhonecallsshouldbemadefromARCphoneonrecordedlineandelectroniccommunicationmustbethroughARCapprovedemailtobeauditedbythecomplianceofficer.Youmustsubmitnameandphonenumberofallcontactsthatspecifytheydonotwantyoutocontactthemagainviatheformonyourhomepage.Compliancerulesapplyregardingallclaimsandconversationswithprospects.Youmaycallaconsumerwithwhomyouhaveestablishedabusinessrelationshipwithforupto18monthsaftertheconsumerslastpurchase,lastdeliveryorlastpayment,unlesstheconsumerasksthecompanynottocallagain.Ifaconsumermakesaninquiryorsubmitsanapplicationtoacompany,thecompanycancallfor3monthsunlesstheconsumermakesaspecificrequesttothecompanynottocall.IfyouhaveanyquestionsinregardstocoldcallingandtheDoNotCallRegistry,pleaseaccesstheQ&ApageontheFTC.govDonotcallregistrywebsite.

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Section4

ClientOnboardingProcess

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Prospect/ClientMeetingsTheARCGroupwillprovidealltheformsyouneedtogathernecessaryinformationfromyourclients.PleaseenterthedataimmediatelyfollowingyourmeetingintothefarmplanontheTradeManagementSite.ItispolicyforARCConsultantstositdowntomeetwithprospectsandclients.Tohelpyouwiththisprocesswehavedevelopedformstowalkyouthroughameetingandclosethesale.

- Determineifyourprospectisaneligibleparticipant.- MeetingNotesForm-PDF- ClientInformationForm-PDF- RiskManagementConsultingAgreement-PDF- ConsultingInvoice- ConsultingFeeReportingForm- NewCounterpartyForm- Trainingyourclient

o E-signo Productsofferedo Processandcommunicationso Margin

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OnboardingyourClient

- Determinethatyourprospectiveclientisaneligibleparticipant

- Complete&reviewtheOTCagreementwithclient.Haveclientsigntheagreement.

- AgreeonConsultingFee–collectpaymentrightawayorsendinvoiceforConsulting,enterintoformonyourhomepageforreportsandpayouttracking

- BasedonnameorentityonaccountyouneedtocollectthecorrectTaxID.

- CompletetheNewCounterpartyFormonyourHomePage.WhenyoucompletetheNewCounterpartyForm,theHomeOfficeisautomaticallynotifiedtodothefollowing:

o EnternewcounterpartyintoTradeManagementwebsite

§ EchoSignnecessaryformstoclient• OTCTradingAgreement• ScheduleA• LimitedPOA• CashLimitedPOA• DBAForm

o ApplyforLEInumberifneeded(canonlybedoneafterLimitedPOAissigned)

o SendADMISinstructionsandlinktoopenChicagoAccount

- CompleteADMISapplicationwithclient-Allaccountsarebasedon$40roundturns,ifyouwantsomeoneatadifferentrateyoumusttellARCGroupuponopeningofacct.

- Completeplanforclient&estimatecrop- Entercropinfointofarmplan- CathySetupACH&wires- MeetwithBanker–verifyinformation–explainplan,

askbankeriftheywanttobeemailedfarmplan,addthemtotheOTCsiteiftheydo

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TrainingyourclientItisessentialyoueducateyourclientonprocessesandprocedures.Youcandothisusingthegrainbible,historicaldata,andapprovedmarketingmaterials.Youalsoneedtobesureyourclientunderstandstheimportanceofandprocedureforechosigningforms.Remindyourclienteverytimeyouspeaktothemwhattoexpectorwatchfor,andthetimeframeinwhichtheyneedtocompletethetask.OtherthingstheyneedtobeawareofwouldbeLEI’s,LEIrenewalsandMarginCalls.Coverthefollowingitemswitheachclient:

- Communicationmethods- UpdatingtheirFarmPlanandtheImportanceof- ProductsOfferedanddevelopingtheplan- Importanceofstickingwiththeplan- Tools:

• Hedging• SpecializedOver-the-Counterhedgingproducts• MarginlessHedgingPrograms• CropInsurance• OnlineFarmPlanTracking• Mechanicsofwhatwedovideo

- E-SigningDocuments- Confirms-Confirmationsmustbesignedbyclient

within48hours.Confirmsaresentbyhomeofficeuponverifyingallinformationmatchestoatradeoroffset.Itisthebrokersresponsibilitytocommunicatethatthetradehastakenplace,theconfirmhasbeensentoutandneedstobesignedimmediately,aswellastrainingyourclienthowtoechosigndocs.

- LEI’sandRenewalso ARCwillcovertheinitialcostofobtainingthe

LEInumbero Renewalswillbechargedtotheclient

- MarginCallsandAccountFunding(seepage50oftheADMISComplianceManual)

o Procedure/day1–ClientsmustbeeducatedonMargin.Margincallsareonyourequityrunandaresentouteverymorning.Yourclientsneedtobecontactedimmediatelyandmarginisduewithinthesamebusinessday.UsetheMarginformonyourhomepagetoreportpush

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orpulltotheARCBackoffice.o TheARCGroupprohibitsanyoneotherthanthe

recognizedARCaccountholderfromfundinganARCaccount.Simplystated,thefundingforanaccountatARCshouldbethroughabankaccountwiththesamenameandtaxID.IfeithertheARCaccountorbankaccountisina“doingbusinessas”(“DBA”)name,besuretohavetheaccountnamesonbothsidesreflectthosenames.

o ARCwilldisbursefundsinthenameoftheARCIndividualAccount.Thismeanswewillnotsendoutfundsinthenameofanyotherpersonorparty.ItalsomeansforACHinstructionsthevoidedcheckmustshowtheIndividualARCAccountownerasaremitteronthecheck.However,ifthecheckisfromaJointbankaccounttheremitterinformationmustreadas‘and/or’,notjust‘and’.Asanexample,JointARCAccountforJohnSmithandMarySmith:acheckwheretheremitterinforeadsas‘JohnSmithand/orMarySmith’isacceptable;acheckwheretheremitterinforeadsasJohnSmithandMarySmithisnotacceptable.

o Anothernoteworthyitemtoincludeisthatasoflate,checksstating“FarmAccount”havebeenflaggedaspotential“third-partyfunding”,raisinganti-moneylaunderingconcernsbyreferencingapossibleDBAnamethereforerequiringaDBARepresentationLetterandW-9becompleted.

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CustomerServiceAsarepresentativeoftheARCgroupitisrequiredthatyouprovideyourclientswiththebestpossibleexperience.Todoso,communicationonaregularbasisiscritical.Everytimeyouspeakwithyourclientyouneedtogoovertheirfarmplan-confirmfarmplanacres,yieldandaveragecroptostayonthesamepage.Reachouttoyourclientsnolessthanquarterlytosharewiththembasicsofourprogram: 1-Agreetomarketingplan-%inwhatproducts,%topickhigh. 2-Gothroughtrades–tellthemwheretheyare,makesuretheylookattheirfarmplan&answeranyquestions. 3-Calltotellthemprices,figureharvestdeliverybushels&storage,explaincarry&rollcarry.

4 -Dec–figureoutwhat’sinbin&sellbushels,re-signclient.

SeeRecommendedcustomercontacttimelineintheAppendix.

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Section5

TradeEntryProcess

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NewTrades

ChicagotradeswillbeenteredthroughOAKimmediately.

OTCTradeswillfollowtheNewTradeEntriesflowchartbelow.EmailmustbesentimmediatelytoOTC@agrisk.netwithnewtradeinformation.InstructionalvideosshowingstepbystepentryintotheARCTradeManagementsystemisavailableonyourhomepage.

CloningTrades–youcancloneatradeintrademanagementbutyoumustbesuretochangedate,clientname,changetofilledandchangethebushelamount.

Offsets

EnteroffsetsimmediatelyintotheTradeManagementSite.InstructionalvideosshowingstepbystepentryintotheARCTradeManagementsystemisavailableonyourhomepage.

ReportthetradeimmediatelyfollowingentryintothetrademanagementsiteusingtheOffsetFormonyourHomePage.

FollowtheOffsetEntriesflowchartbelow(alsoonyourHomePage).

GrainDealers

- Process–seeGrainDealer–LifeofContractflowcharto Contractmadein“ARCGroup/clientsname”o Clientdeliverso ClientsubmitsallticketstoARCGrouphomeoffice o Endusersendspayment&settlementadviceto

ARCGroupo OncefundsareavailableinARCGroupaccount,

settlementadviceandticketsprovidedbyclientarematched

o Settlementpaidtoclient- FOB

o mustknowwhatfreightis–arrangedbybroker,billedtoARCGroup,takeoutofclient’ssettlementorCHSarrangesit&takesoutoftheprice

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Section6

Compliance

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Compliance

ARChasapprovedandadoptedpoliciesandprocedurescontainedintheADMISComplianceManual,includingtheAnti-MoneyLaunderingProgram,andanyandallcommunicatedupdates.

IfthereisacontradictionbetweenthismanualandthemanualissuedbyADMIS,guidancefromADMISwillcontrol.

SpeculativeAccountsYoucantradeyourownspecaccount,butyoucannotleavetheofficeifyouareonmargin,andyoucannotenteryourowntradesbeforeenteringclienttrades.

PhoneCallsIncomingandoutgoingbusinesscallsneedtobecompletedonthephonesystemprovidedbyTheARCGroup.Phonecallsarerecordedandmaybemonitoredforserviceandcompliancepurposes.ARCthisis….

o Takingmessages–Name,phonenumber,company,canIgivehimamessage

o AlwaysprofessionalRecordedlines–itisnecessarytouseARCGroupphonesatalltimes–linesarerecordedandneedtobemonitoredforcompliancereasons WorkingPhones–trainonMaxCommunicator–placingcallsonhold,conferencecalling,transferringcalls,viewingARClinesVoicemail–Howtouse.Checkvoicemailandreturncallsassoonaspossible.TransferringCalls–MaxCommunicator

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BranchAuditsBranchAuditsarerequiredtobecompletedannuallywithin365daysofoneanother.Fromyourhomepageyoucanaccesscomplianceresources.Allbrokersmustcompletethefollowingpriortotheaudit(youcanlocateallinformationfromyourbrokerhomepagebyclickingonComplianceInformation)

- ReviewtheupdatedBusinessDisasterRecoveryPlan,conductthetestandprintoneforfileonsite,emailsignedcopytoColleen.

- NFASelf-ExamQuestionnaire–(Locatedonyourhome

page)Aprintedcopyisrequiredtobekeptonfileineachbranchoffice. -Annuallyeachbranchofficeisrequiredtocompletethequestionnaire,printandsignattestation(http://agriskconsulting.net/wp-content/uploads/2016/04/NFAExamQuestAppFeb2016.pdf).Attestationisrequiredtobekeptonfileathomeofficeandbranchofficefor5years. -Itemswithinthemostcurrentself-examchecklistneedtobekeptcompliantalways.

- ADMIScompliancemanual-(locatedonyourhomepage)AcurrentcopyoftheADMISManualmustbekeptonfileateachbranchlocationatalltimes.TheAnnualAuditwillbeconductedbasedontheAuditProgramlocatedintheADMISmanual.

- ReviewADMISBranchOfficeAuditProgram(page72ofComplianceManual)andbringalllackingitemsintocompliance.TheBranchmanagerisrequiredtomakesurecomplianceoftheirbranchismaintainedatalltimesbasedonthemostcurrentADMISmanual.

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- Duringtheaudit-fileswillbereviewed/sampled(inhard

copyformat)aspertheADMISBranchOfficeAuditProgramandthequestionnairewillbecompleted.Youcanfindthequestionnairebeginningonpage72oftheADMISComplianceManual.

o PromotionalMaterialFileo CustomerAccountFileso DiscretionaryAccountFileso Sampleorderticket&electronictradelogso Bunchedordertickets&electronictradelogsif

applicableo Erroraccountstatement&records/orderticketso Acknowledgementthatnocustomerfundsare

receivedatthebranchofficeo AMLFileo CustomerComplaintFileo Branchofficefile(5years)

§ Compliancemanual§ DailyEquityRunsarchive

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RequiredTraining/Documents

- Ethics(withinpast3yearsthroughanyfirm)-EthicsTrainingmustbecompletedwithin6monthsofbecominganAPandevery3yearsthereafterbyapreviouslytrainedAP.ProofofthistrainingMustbekeptonfileatbranchandhomeofficefor5years.

- Cybersecurity(ARC/ADMIS)–Annually-CybersecurityTrainingmustbecompletedwithin365daysoflastcompletionandisrequiredtobekeptonfileathomeofficeandbranchofficefor5years.

- AML(ARC/ADMIS)–Annually–AMLTrainingmustbecompletedwithin365daysoflastcompletionandisrequiredtobekeptonfileathomeofficeandbranchofficefor5years.

EquityRunsMustbeviewedeverymorningbefore8amevenifyoudidnotrades.Thishelpstocatchanyerrorssuchasbutnotlimitedtosomeoneelsetradinginyourclientsaccount,etc.Markthatyouhavecompletedareviewofyourequityrundaily.

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Appendix

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