Revenue Sharing Practices and Payments by Sponsoring Companies

Client Disclosure Statement

Founders Financial Securities LLC, Member FINRA, SIPC (FFS) and its Registered Representatives are compensated in different ways when selling a mutual fund, or variable insurance product, (all of which are collectively referred to as "product"), depending on the amount invested and/or share class purchased. Most mutual funds charge an annual fee associated with operating the fund, and a sales commission or "load," which is paid to FFS and may be charged to you up-front when you purchase the product, annually, or at the back-end when you sell the product. Additionally, most variable products assess fees and/or back-end charges which are used to compensate FFS and its Registered Representatives. Other load structures also exist, and you should review the fee table located in the product prospectus for a complete discussion of fees and expenses. These overall expenses impact the overall return on your investment.

We also want you to know that FFS has a few unique relationships with a select group of product sponsors ("Sponsoring Companies") that reflect a variety of performance and investment styles with a broad spectrum of investment choices and services. FFS has chosen to work with these companies because of the array of investment choices and services these companies offer to address the varied needs of our client base and because of their reputations, size, marketing and operational sophistication and level of wholesaling support. FFS receives additional compensation or payments (also known as "revenue sharing") as a result of these relationships. The greater access afforded these companies to work with our Registered Representatives provides additional training, educational presentations, and other product support so that each Registered Representative may work more effectively to better serve you. Of course, FFS' Registered Representatives are not required to recommend any of these particular products to you; however, this greater level of access could influence a Registered Representative's product recommendation to you. FFS maintains an approved product list that contains a wide variety of over 100 mutual fund and variable insurance companies, in addition to the companies included on the Sponsoring Company list. Our current Sponsoring Company List can be found on the bottom of this disclosure.

FFS does not provide differential compensation (or higher net payouts) to Registered Representatives which are more favorable for investments made in Sponsoring Company products. Some mutual funds and variable insurance products carry a higher sales charge than others (resulting in higher gross compensation to FFS), which could influence a Registered Representative's product recommendation to you. The fee table located in the product prospectus should be reviewed for a complete discussion of all fees and expenses.

Registered Representatives and/or FFS may receive directly or indirectly additional cash benefits and non-cash compensation or reimbursements from FFS or its affiliates. Additional compensation or reimbursement arrangements may include payments in connection with the firm's conferences or seminars, sales or training programs for invited Registered Representatives and other employees, seminars for the public, trips (such as travel, lodging and meals in connection therewith), entertainment, merchandise and other similar items, and payments, loans or loan guaranties to assist a firm or a Registered Representative in connection with systems, operating, marketing or other business expenses. The amounts may be significant and may provide our affiliates with increased access to the Registered Representatives.

FFS receives revenue sharing fees based on overall sales by Registered Representatives of investment products issued by Sponsoring Companies. FFS receives such revenue sharing fees in a range of 10 to 50 basis points ($10 to $50 per $10,000) of the total value of assets placed by FFS' Registered Representatives in products offered by Sponsoring Companies. FFS negotiates these payments annually from each Sponsoring Company to defray the ongoing costs of training, education, and product support activities. These revenue sharing payments are in addition to the sales charges, annual service fees (commonly referred to as "12b-1 fees"), applicable redemption fees and deferred sales charges, and other fees and expenses disclosed in a mutual fund's or other product's prospectus fee table. Revenue sharing payments, however, are paid out of the Sponsoring Company's assets. Moreover, no portions of these payments to FFS is made by means of brokerage commissions generated by the mutual fund or other product and no portion of these payments are directed or allocated to Registered Representatives. You should refer to the Prospectus and/or Statement of Additional Information (available on request from the product issuer) for a complete discussion on how revenue sharing programs with distributors such as FFS are administered.

FFS also receives due diligence and marketing fees when selling real estate investment trust interests (also known as REITS) and limited partnership interests, depending on the amount invested. These fees are paid from client monies, and are fully disclosed in the product prospectus. You should review the product prospectus for a complete discussion of fees and expenses .Some of these product sponsors are also provided greater access to our Registered Representatives to provide training, educational presentations and other product support.

Sponsoring Companies:

  • CION Securities, LLC
  • CNL Securities
  • Dividend Capital Securities
  • Franklin Templeton
  • Lincoln Distributors
  • MetLife Investors