Effective January 1, 2018 or as soon thereafter as the changes can be implemented, we intend to amend your Customer Agreement to change your sweep option from the Bank Deposit Sweep Program (BDSP) to the Ladenburg Insured Cash Account Program for Brokerage Retirement Accounts (“Program”) a new program for available cash balances in eligible advisory IRA accounts. This change will affect the fees and expenses paid by your account, the compensation we receive for making our sweep services and sweep programs available to your account, and the interest rate paid with respect to your cash deposits.
The Bank Deposit Sweep Program (BDSP) is a core account investment vehicle used for settling securities transactions or for holding cash while awaiting reinvestment. The cash balance in your NFS brokerage account(s) will be automatically deposited or “swept” into an interest-bearing FDIC-insured deposit account at one or more participating banks.
When an order is placed at the current market price to either purchase or sell, the order may then be shown to a “third market” provider. If the provider can execute the order at the current market price or better, the order will flow to that provider. The transaction will clear and settle through National Financial Services LLC or Pershing LLC. Securities Service Network, LLC. may receive a fluctuating payment per share for each transaction routed to a third market provider.
For accounts that clear through NFS, LLC customers may access this information by clicking the link above.
For accounts that clear through Pershing, customers may access this information by clicking the link above. After accessing this site, the customer will enter “Securities Service Network LLC” to retrieve the applicable information.
Securities Service Network, LLC. (hereinafter referred to as SSN), is required to communicate its policies related to the privacy of customer information. We are proud of our privacy practices and procedures and we want you to know how we work with your representative to protect your information and use your information to service your account.
Ladenburg Thalmann Financial Services Inc. and its affiliates, which include Ladenburg Thalmann & Co. Inc., Securities America, Inc., Triad Advisors, LLC., Securities Service Network, LLC., Investacorp, Inc. and KMS Financial Services, Inc., (together “Ladenburg Thalmann”), and their representatives receive revenue on the products and services you purchase from several sources. These sources include fees and charges you pay and other arrangements we have in place with affiliated and non-affiliated entities including: sales charges; commissions; periodic fees; periodic expenses paid from product assets such as 12b-1 fees from mutual funds and the funds available in variable annuities; financial planning and advisory service fees; a portion of the organization and offering fees and expenses for REITs, limited partnerships and other nonpublic securities offerings.
Related Party Disclosure
Securities Service Network, LLC. (SSN) and SSN Advisory, Inc. (SSNAI) are wholly-owned by.
Educational Communication Related to Recruitment Practices and Account Transfers.
FINRA Rule 2273 establishes an obligation to deliver an educational communication in connection with member firm recruitment practices and account transfers. Specifically, Rule 2273 requires delivery of a FINRA-created educational communication by the member firm that recruited the registered representative (recruiting firm) that highlights key considerations for the representative’s former customers in transferring assets to the recruiting firm, and the direct and indirect impacts of such a transfer on those assets.
As a “covered service provider” as defined by ERISA, we are required to disclose direct compensation that is deducted from your account. This information is provided to help responsible plan fiduciaries determine whether the contracts or arrangements they have with us are reasonable, including the compensation we receive. It is also intended to disclose any potential conflicts of interest that may affect our performance.
Schedule of Misc. Account and Service Fees