Client Privacy Notice

At Emerson Equity LLC(“Emerson Equity”), maintaining the trust and confidence of our clients is a high priority. That is why we want you to understand how we protect your privacy when we collect and use information about you and the steps we take to safeguard that information.

Information Collected:

In connection with providing investment products, financial advice, or other services, we obtain non-public personal information about you, including:

  • Information we receive from you on account applications or other forms;
  • Information received from credit or service bureaus or other third parties; and
  • Information about your transactions with us or others, including your financial adviser.
Information Disclosed:

We will not disclose information regarding you or your account with us, except under the following circumstances:

  • To your authorized Registered Representative and his or her manager;
  • To establish or maintain an account with an unaffiliated third party, such as a clearing broker providing services to you and/or Emerson Equity; and
  • To government entities or other third parties in response to subpoenas or other legal process as required by law
Security Policy:

Only those individuals who need it to perform their jobs are authorized to have access to confidential client information.

We maintain physical, electronic, and procedural security measures that comply with applicable state and federal regulations to safeguard confidential client information.

Closed or Inactive Accounts:

If you decide to close your account(s) or become an inactive customer, we will adhere to the privacy policies and practices as described in this notice.

Security Policy Personnel Transfers to Other Firms

The firm allows departing registered representatives to contact the customer and offer the choice of following that representative to his or her new firm. This information may include the customer’s name, a general description of the

type of account and products held by the customer, and contact information, including address, telephone number and email information.

Opt-Out Policy:

The firm does not share personal non-public information with unaffiliated third parties for purposes other than those necessary to provide the services the customer expects to receive from the firm. As such, there are no aspects of this privacy policy to which the customer may opt-out.

Compliant Notification:

Please direct complaints to:
Emerson Equity LLC
155 Bovet Drive San Mateo, CA  94402
or call (650) 312-0200.

Changes to this Privacy Policy:

If we make substantial changes in the way we use or disseminate confidential information, we will notify you.

Public Disclosure Program

Emerson Equity LLC is required to provide to you information regarding the Public Disclosure Program for investors.

Created by FINRA in 1988, the Public Disclosure Program allows you, the investor, to learn about the professional background, business practices, and conduct of FINRA member firms and their brokers. To request disclosable information under this program, visit the FINRA Regulation Web site at www.finra.org or call (800) 289-9999, a toll-free hotline operated by FINRA. 

In addition, please note that there is a Public Disclosure Program Brochure available to you as well. This brochure helps you answer questions pertaining to the Public Disclosure Program, and is available on FINRA’s Web site.

You can always learn more about your representative at brokercheck.finra.org.

Business Continuity Plan Summary

Emerson Equity LLC has developed a Business Continuity Plan describing how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information on our business continuity plan.

Contacting Us:

If after a significant business disruption you cannot contact us as you usually do at (650) 312-0200 or at our email address(info@emersonequity.com), you should go to our website at www.emersonequity.com.

Our Business Continuity Plan:

We plan to quickly recover and resume business operations after a significant business disruption and respond by safeguarding our employees and property, making a financial and operational assessment, protecting the firm’s books and records, and allowing our customers to transact business. In short, our business continuity plan is designed to permit our firm to resume operations as quickly as possible, given the scope and severity of the significant business disruption.

Our business continuity plan addresses: data back-up and recovery, all mission critical systems, financial and operational assessments, alternative communications with customers/ employees/regulators, alternate physical location of employees, critical supplier/contractor/ bank and counter-party impact, regulatory reporting, and assuring our customers prompt access to their securities, if we are unable to continue our business.

Our electronic hosting and compliance providers back up our important records in a geographically separate area. While every emergency situation poses unique problems based on external factors, such as time of day and the severity of the disruption, we have been advised by these service providers that their objective is to restore their own operations within one hour. Facilitating your transactions could be delayed during and following this period.

Varying Disruptions:

Significant business disruptions can vary in their scope, such as only our firm, a single building housing our firm, the business district where our firm is located, the city where we are located, or the whole region. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption to only our firm or a building housing our firm, we will transfer our operations to a local site when needed and expect to recover and resume business within one hour. In a disruption affecting our business district, city, or region, we will transfer our operations to a site outside of the affected area, and recover and resume business within six hours. In either situation, we plan to continue in business, and notify you through our website(www.emersonequity.com) on how to contact us.  If the significant business disruption is so severe that it prevents us from remaining in business, we will notify you as soon as practicable.

For more information:

If you have questions about our business continuity planning, you can contact us at (650) 312-0200.

Securities Investor Protection Corporation (SIPC)

Emerson Equity LLC is required to provide to you information regarding the Securities Investor Protection Corporation(SIPC).

Created by Congress in 1970, the SIPC is an important part of the overall system of investor protection in the United States. The SIPC’s focus is very narrow: restoring funds to investors with assets in the hands of bankrupt and otherwise financially sound, troubled brokerage firms. 

You can obtain information about SIPC, including obtaining the SIPC brochure, by contacting SIPC by phone, email or regular mail as follows:

Securities Investor Protection Corporation
805 15th Street, N.W. Suite 800
Washington, D.C. 20005-2215

Telephone: (202) 371-8300
FAX:  (202) 371-6728

Email:  asksipc@sipc.org

In addition, you may also visit the SIPC website at www.sipc.org to obtain information.

Emerson Equity LLC Client Relationship Summary

Please consult Emerson Equity’s Client Relationship Summary(Form CRS) for an overview of the types of services that we offer, including high-level information about fees, costs, and conflicts of interest and how to obtain additional information about the firm.

Requirements for Accredited Investors

All investors in securitized real estate programs who qualify for section 1031 real estate exchanges must be “accredited investors”.  The regulations for accredited investors vary from one jurisdiction to the other and are often defined by the local market regulator or a competent authority.  In the United States, the definition of “accredited investor” is put forth by the SEC in Rule 501 of Regulation D.

To be an accredited investor, a person must have an annual income exceeding $200,000 or $300,000 for joint income, for the last two years with the expectation of earning the same or higher income in the current year.  The income test cannot be satisfied by showing one year of an individual’s income and the next two years of joint income with a spouse. The exception to this rule is when a person is married within the period of conducting a test.

A person is also considered an accredited investor if he/she has a net worth exceeding $1 million, excluding personal residence, either individually or jointly with a spouse. The SEC also considers a person to be an accredited investor, if the person is a general partner, executive officer, director or a related combination thereof for the issuer of unregistered securities.

An entity is an accredited investor, if it is a private business development company or an organization with assets exceeding $5 million.  Also, if an entity consists of equity owners who are accredited investors, the entity itself is an accredited investor.  However, an organization cannot be formed with the sole purpose of purchasing specific securities.

In 2020, the U.S. Congress modified the definition of an accredited investor to include registered brokers and investment advisors who hold a Series 7, 82, or 65 in good standing. Also, directors, executive officers, or general partners of the issuer for the target securities, “family clients” of a “family office” that, itself, qualifies as an accredited investor, and, for investments in a private fund, “knowledgeable employees” of that fund all qualify as accredited invstors. Please work with your representative to verify your accredited investor status, prior to pursuing a securitized exchange.

Governing Rule(Tax Code)

Exchange Of Real Property Held For Productive Use Or Investment (26 U.S. Code § 1031)

(A) Nonrecognition of gain or loss from exchanges solely in kind:  

(1) In general no gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment, if such real property is exchanged solely for real property of like kind which is to be held either for productive use in a trade or business or for investment.

(2) Exception for real property held for sale. This subsection shall not apply to any exchange of real property held primarily for sale.

(3) Requirement that property be identified and that exchange be completed not more than 180 days after transfer of exchanged property. For purposes of this subsection, any property received by the taxpayer shall be treated as property which is not like-kind property if—

(a) such property is not identified as property to be received in the exchange on or before the day which is 45 days after the date on which the taxpayer transfers the property relinquished in the exchange, or

(b) such property is received after the earlier of –

(i) the day which is 180 days after the date on which the taxpayer transfers the property relinquished in the exchange, or

(ii) the due date(determined with regard to extension) for the transferor’s  return  of the tax imposed by this chapter for the taxable year in which the transfer of the relinquished property  occurs.

(B) Gain from exchanges not solely in kind:  

If an exchange would be within the provisions of subsection (a), of section 1035(a), of section 1036(a), or of section 1037(a), if it were not for the fact that the property received in exchange consists not only of property permitted by such provisions to be received without the recognition of gain, but also of other property or money, then the gain, if any, to the recipient shall be recognized, but in an amount not in excess of the sum of such money and the fair market value of such other property.

(C) Loss from exchanges not solely in kind:  

If an exchange would be within the provisions of subsection (a), of section 1035(a), of section 1036(a), or of section 1037(a), if it were not for the fact that the property received in exchange consists not only of property permitted by such provisions to be received without the recognition of gain or loss, but also of other property or money, then no loss from the exchange shall be recognized.

(D) Basis:  

If property was acquired on an exchange described in this section, section 1035(a), section 1036(a), or section 1037(a), then the basis shall be the same as that of the property exchanged, decreased in the amount of any money received by the taxpayer and increased in the amount of gain or decreased in the amount of loss to the taxpayer that was recognized on such exchange. If the property so acquired consisted in part of the type of property permitted by this section, section 1035(a), section 1036(a), or section 1037(a), to be received without the recognition of gain or loss and in part of other property, the basis provided in this subsection shall be allocated between the properties(other than money) received, and for the purpose of the allocation there shall be assigned to such other property an amount equivalent to its fair market value at the date of the exchange. For purposes of this section, section 1035(a), and section 1036(a), where as part of the consideration to the taxpayer another party to the exchange assumed(as determined under section 357(d)) a liability of the taxpayer, such assumption shall be considered as money received by the taxpayer on the exchange.

(E) Application to certain partnerships:  

For purposes of this section, an interest in a partnership which has in effect a valid election under section 761(a) to be excluded from the application of all of subchapter K shall be treated as an interest in each of the assets of such partnership and not as an interest in a partnership.

(F) Special rules for exchanges between related persons:  

(1) In general—

(a) a taxpayer exchanges property with a related person.

(b) there is nonrecognition of gain or loss to the taxpayer under this section with respect to the exchange of such property(determined without regard to this subsection), and

(c) before the date 2 years after the date of the last transfer which was part of such exchange—

(i) the related person disposes of such property, or

(ii) the taxpayer disposes of the property received in the exchange from the related person which was of like kind to the property transferred by the taxpayer, there shall be no nonrecognition of gain or loss under this section to the taxpayer with respect to such exchange: except that any gain or loss recognized by the taxpayer by reason of this subsection shall be taken into account as of the date on which the disposition referred to in subparagraph (c) occurs.

(2) Certain dispositions not taken into account for purposes of paragraph (1)(c), there shall not be taken into account any disposition—

(a) after the earlier of the death of the taxpayer or the death of the related person.

(b) in a compulsory or involuntary conversion(within the meaning of section 1033), if the exchange occurred before the threat or imminence of such conversion, or

(c) when it is established to the satisfaction of the Secretary that neither the exchange nor such disposition had as one of its principal purposes the avoidance of Federal income tax.

(3) Related person for purposes of this subsection, the term “related person” means any person bearing a relationship to the taxpayer described in section 267(b) or 707(b)(1).

(4) Treatment of certain transactions. This section shall not apply to any exchange which is part of a transaction(or series of transactions) structured to avoid the purposes of this subsection.

(G) Special rule where substantial diminution of risk:  

(1) In general, if paragraph (2) applies to any property for any period, the running of the period set forth in subsection (f)(1)(c) with respect to such property shall be suspended during such period.

(2) Property to which subsection applies. This paragraph shall apply to any property for any period during which the holder’s risk of loss with respect to the property is substantially diminished by-

(a) the holding of a put with respect to such property,

(b) the holding by another person of a right to acquire such property, or

(c) a short sale or any other transaction.

(H) Special rules for foreign real property:  

Real property located in the United States and real property located outside the United States are not property of a like kind.

(Aug. 16, 1954, ch. 736, 68A Stat. 302; Pub. L. 85-866, title I, §44, Sept. 2, 1958, 72 Stat. 1641; Pub. L. 86-346, title II, §201(c)-(e), Sept. 22, 1959, 73 Stat. 624; Pub. L. 91-172, title II, §212(c)(1), Dec. 30, 1969, 83 Stat. 571; Pub. L. 98-369, div. A, title I, §77(a), July 18, 1984, 98 Stat. 595; Pub. L. 99-514, title XVIII, § 1805(d), Oct. 22. 1986, 100 Stat. 2810; Pub. L. 101-239, title VII, § 7601(a), Dec. 19, 1989, 103 Stat. 2370; Pub. L. 101-508, title XI, §§ 11701(h), 11703(d)(1), Nov. 5, 1990, 104 Stat. 1388-508, 1388-517: Pub. L. 105-34, title X, § 1052(a), Aug. 5, 1997, 111 Stat. 940′ Pub. L. 106-36 title III § 3001(c)(2), June 25, 1999, 113 Stat. 183; Pub. L. 109-135 title IV, § 412(pp), Dec. 21, 2005, 119 Stat. 2640′ Pub. L. 110-234, title XV. § 15342(a), May 22, 2008, 122 Stat. 1518; Pub. L. 110-246, § 4(a), title XV, § 15342(a), June 18, 2008. 122 Stat. 1664, 2280: Pub. L. 115-97, title I, § 13303(a)-(b)(5), Dec. 22, 2017, 131_Slat 2123. 2124.)