A Working Group convened by the North American Securities Administrators Association (NASAA) has developed a model fee disclosure schedule and related accessibility guidelines to help investors better understand and compare various broker-dealer service and maintenance-related fees. The template and guidelines make fee disclosure easily accessible and simple for retail investors to read and use to understand and compare fees.
The Working Group consists of state securities regulators, representatives of the Financial Industry Regulatory Authority (FINRA), the Securities Industry and Financial Markets Association (SIFMA), the Financial Services Institute (FSI), LPL Financial LLC, Morgan Stanley Smith Barney LLC, Prospera Financial Services, and Signator Investors, Inc. The Working Group was formed in 2014 following the release of a study by NASAA’s Broker-Dealer Section uncovering a wide disparity in how broker-dealers disclose the fees they charge customers.
The Working Group’s model fee table can be customized to be consistent with a firm’s branding and should include all miscellaneous account and service fees, including account maintenance fees. The table does not, however, include commissions, mark-ups, commission equivalents, or advisory fees.
The following firms have informed NASAA that they have adopted and are in the process of implementing both the model fee disclosure and related accessibility guidelines:
- Cambridge Investment Research Inc.
- Cetera Financial Group (Cetera Advisors; Cetera Advisor Networks; Cetera Financial Institutions; Cetera Financial Specialists; First Allied Securities, Inc.; Girard Securities, Inc.; and Summit Brokerage Services, Inc.)
- Commonwealth Financial Network
- Fidelity Investments
- 1st Global
- FSC Securities Corp.
- Ladenburg Thalmann Financial Services Inc. (Ladenburg Thalmann & Co., Inc.; Investacorp, Inc.; KMS Financial Services, Inc.; Securities America, Inc.; Securities Service Network, Inc.; and Triad Advisors, Inc.)
- LPL Financial LLC
- Merrill Lynch, Pierce, Fenner & Smith Inc.
- Morgan Stanley Smith Barney LLC
- Prospera Financial Services
- Prudential Financial, Inc.
- Royal Alliance Associates, Inc.
- SagePoint Financial, Inc.
- Signator Investors, Inc.
- Voya Financial Advisors, Inc.
- Wells Fargo Advisors
- Wells Fargo Advisors Financial Network, LLC
- Woodbury Financial Services, Inc.
If your firm is not listed above, but you have adopted the model fee disclosure and related accessibility guidelines, please contact NASAA here.
NASAA has provided this information as a service to investors. It is neither a legal interpretation, nor an endorsement of the listed firms, nor an indication of a policy position by NASAA or any of its members, the state and provincial securities regulators. If you have questions concerning the meaning or application of a particular state law or rule or regulation, or a NASAA model rule, statement of policy or other materials, please consult with an attorney who specializes in securities law.