Disclosures

THIRD-PARTY FEE DISCLOSURE

Cadaret Grant & Co., Inc. (“Cadaret Grant”) receives compensation and/or fees (also referred to as revenue sharing or marketing support) from certain mutual fund families, insurance (fixed and variable product) providers, structured products, and alternative investment (REIT/BDC/MCLD/SP etc.) providers that sponsor, manage and/or promote the sale of certain products that are available to our customers. These payments include commissions, trailing commissions, fees, and for certain product providers, revenue sharing payments made in connection with programs that support our marketing and sales force education and training efforts (referred to here as “Strategic Partners Program”). These relationships bring additional compensation to Cadaret Grant, which is used to offset a variety of expenses, including but not limited to, marketing, training, educational presentations and other support.  This additional compensation may create a potential conflict of interest as it may influence the selection of investments Cadaret Grant and/or its Investment Representatives offer or recommend to investors.   This disclosure is intended to provide you with an overview of the various types of compensation and/or fees Cadaret Grant may receive.  We encourage you to review this information in the entirety and contact us with any questions. 

 

STRATEGIC PARTNERS PROGRAM

Strategic Partner Program participants (referred to as “Participating Sponsors” or “Strategic Partners”) are listed below. Participating Sponsors pay Cadaret Grant different amounts of revenue sharing and receive different levels of benefits for such payments. Some Participating Sponsors pay Cadaret Grant more than others, however, those fees are not shared with Investment Representatives. An Investment Representative’s compensation is the same regardless of whether the sale involves a Strategic Partner’s product.  In some cases, Participating Sponsors may pay additional marketing payments to Cadaret Grant to cover fees to attend conferences or reimbursement of expenses for workshops or seminars. The payments made under the Strategic Partners Program are calculated based upon gross sales or assets under management and vary by product provider. Payments may also be based on a flat fee arrangement.  Benefits Participating Sponsors receive may include Investment Representative contact lists, preferred placement on Cadaret Grant’s website, Cadaret Grant support of product training and ability to participate in Cadaret Grant conferences.

 

MUTUAL FUND PARTICIPATING SPONSORS

In addition to receiving sales commissions and other types of compensation, Cadaret Grant receives asset-based and sales-based compensation from mutual fund Participating Sponsors.  Such payments vary by mutual fund sponsor.  Cadaret Grant may receive payments from mutual fund sponsors under the Strategic Partners Program of up to 0.20% annually on sales.  Alternatively, Cadaret Grant receives compensation on an annual basis of up to 0.0325% of customer assets from other Participating Sponsors.   The following is a list of mutual fund sponsors that participate in Cadaret Grant’s Strategic Partners Program:

 

This list is subject to change.  Certain Strategic Partners only pay Marketing and Education Support. 

 

VARIABLE ANNUITY, FIXED ANNUITY, and INDEXED ANNUITY PARTICIPATING SPONSORS

In addition to receiving commissions, Cadaret Grant receives sales-based compensation from variable annuity, fixed annuity, and indexed annuity Participating Sponsors. Cadaret Grant receives compensation on an annual basis of up to 0.50% on sales of these products.

The following is a list of variable annuity, fixed annuity, and indexed annuity sponsors that participate in Cadaret Grant’s Strategic Partners Program:

 

 

This list is subject to change.  Certain Strategic Partners only pay Marketing and Education Support. 

 

ALTERNATIVE INVESTMENT PARTICIPATING SPONSORS

In addition to receiving commissions, Cadaret Grant receives payments of up to 1.00% of sales on customer assets invested in alternative investment products, including but not limited to real estate investment trusts, business development companies and other ’40 Act funds. This compensation is not shared with Investment Representatives.  

The following alternative investment sponsors participate in Cadaret Grant’s Strategic Partners Program:

 

 

This list is subject to change.  Certain Strategic Partners only pay Marketing and Education Support.

 

UNIT INVESTMENT TRUSTS (UITs)

 

Cadaret Grant receives additional volume compensation based on total assets purchased from the sponsor over a given period of time as disclosed in the Unit Investment Trust’s prospectus. UIT sponsors may compensate Cadaret Grant for training and education seminars for Cadaret Grant associates, Investment Representatives, clients and potential clients. This may include due diligence meetings, recreational activities or other non-cash items. Also, marketing representatives of UIT sponsors, often referred to as “wholesalers”, work with Investment Representatives and their managers to promote their UITs.  The volume concession rate does not exceed .035% per year. The following is a list of UIT companies that participate in Cadaret Grant’s Strategic Partners Program:

 

 

This list is subject to change.  Certain Strategic Partners only pay Marketing and Education Support.  We may receive volume concessions from other UIT companies when certain sales hurdles are met.

 

CASH SWEEP & MONEY MARKET SWEEP

Cadaret Grant offers the Reich & Tang Liquid Insured Deposit Program through Pershing, LLC (“Pershing”).  The Reich & Tang Liquid Insured Deposit Program is a bank deposit “sweep” program that can provide daily interest income and FDIC insurance on balances up to $2.5 million.

Cadaret Grant receives compensation from Pershing equal to a percentage of the average daily deposit balance.  For additional information, please see the applicable disclosure booklet available from your Investment Representative. This compensation is retained by Cadaret Grant and is not shared with Investment Representatives.

The program provides FDIC insurance and payment rates based on the interest rate environment as well as based on total account balance.  For accounts not interested in FDIC insurance, cash balances are invested in a money market fund.  The money market mutual fund automatic cash sweep program sweeps uninvested cash daily into taxable or tax-exempt money market funds offered by Federated Investors.  Cadaret Grant may receive compensation of up to 0.60% of the assets invested in the Federated Investors money market funds. This compensation is retained by Cadaret Grant and is not shared with Investment Representatives.

 

THIRD-PARTY INVESTMENT ADVISORS

Cadaret Grant receives compensation from certain Third-Party Advisors to assist in paying for ongoing marketing and sales support activities including, but not limited to, training, educational meetings, due diligence reviews, and day-to-day marketing and/or promotional activities. Not all Third-Party Advisors pay such compensation.  Participating Third Party Advisors may change over time. Current participating Third-Party Advisors are: 

The compensation arrangements vary, and may generally be structured as follows:

A potential conflict of interest may exist where Cadaret Grant receives such compensation because there may be an incentive to recommend these Third-Party Advisors over other investment opportunities in order to generate additional revenue for the firm. However, our Investment Advisor Representatives are not required to recommend any Third-Party Advisor providing additional compensation, nor do they directly share in any of this compensation.

 

Certain Strategic Partners only pay Marketing and Education Support. 

 

OTHER COMPENSATION

Cadaret Grant Representatives may receive additional compensation from product sponsors however; such compensation is not tied to the sales of any products. Compensation may include such items as gifts valued at less than $100 annually, an occasional dinner or ticket to a sporting event, or reimbursement in connection with educational meetings or marketing or advertising initiatives, including services for identifying prospects.  Product sponsors may also pay for, or reimburse Cadaret Grant for the costs associated with education or training events that may be attended by Cadaret Grant advisors and for Cadaret Grant-sponsored conferences and events. Cadaret Grant also receives reimbursement from product sponsors for technology-related costs associated with investment proposal tools it makes available to its Cadaret Grant Representatives for use with customers.

 

PERSHING CLEARING RELATIONSHIP

Pershing, LLC (“Pershing”) is the clearing firm for Cadaret Grant brokerage business. Due to this business relationship, Pershing may share with Cadaret Grant a portion of the commissions and fees you may pay to Pershing. The following is a brief description of some of the revenue items received from Pershing.

Pershing receives revenue from money market funds and deposit sweeps, and shares that revenue with Cadaret Grant for money market funds/deposit sweeps made available to you for cash sweeps in your brokerage account. Cadaret Grant Representatives do not receive any part of this revenue.

Pershing receives shareholder servicing fees from certain mutual fund sponsors as part of their FundVest NTF (No Transaction Fee) program, and shares a portion of these fees with Cadaret Grant and does not charge Cadaret Grant a ticket charge. Cadaret Grant Investment Representatives do not receive any part of this revenue.

Pershing charges brokerage fees including account transfer fees, IRA custodial and termination fees, paper confirm statement fees, and inactive (custodial) account fees. Portions of these fees may be shared with Cadaret Grant. Representatives do not receive any part of this revenue. 

Additional Pershing fees that may be shared with Cadaret Grant include but is are limited to the following: retirement maintenance fees, margin fees, inactive accounts fees, and recruiting fees.

 

OTHER FEE DISCLOSURES

Other fee disclosures related to our investment advisory business can be found in Cadaret Grant’s Form ADV, available at www.cadaretgrant.com.

 

Business Continuity Plan

Cadaret, Grant maintains a business continuity plan, including alternate processing facilities, to address disruptions in our normal course of business. These plans are reviewed annually and updated as necessary.   The plans outline the actions Cadaret, Grant will take in the event of a building, city-wide, or regional incident, including relocating technology and operational personnel […]

Client ID Program Notice

The following is important information for investors about procedures for opening a new account:   To assist the government in its effort to fight the funding of terrorism and money laundering activities, federal laws require Cadaret, Grant to obtain, verify, and record information that identifies each individual or entity that opens an account. These procedures […]

Order Routing

The U.S. Securities and Exchange Commission (SEC) adopted new rules in an effort to improve public disclosure of order execution and routing practices. As a result, broker/dealers must, on a quarterly basis, disclose the identity of the market centers to which they route a significant percentage of their orders and the nature of their relationships […]

Privacy Policy

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ADV II (A) Brochure

The following are important disclosures for clients/investors. Please read them carefully and contact your financial advisor with questions.   Cadaret Grant ADV II (A) Brochure  

Options

Click here to view the Options Clearing Corporation’s Characteristics and Risks of Standardized Options disclosure documentation.   The following is a list of supplements (organized by year and month of publication), to the Options Clearing Corporation’s options disclosure documentation.   1997        December   2000        May   2004        January   2007        April   2007        May   2007        […]

Checks and Securities Certificates

Checks and securities certificates remitted to us in conjunction with proposed transactions are routinely forwarded to our Syracuse office so that we may perform certain supervisory reviews, including (among other things) confirming that all required documents and information have been submitted and confirming that each transaction appears suitable. We may hold checks and/or securities certificates […]

DOL Disclosures

The Department of Labor, along with other regulatory agencies, require broker/dealers to have procedures in place to monitor whether advisors are making material misleading statements to investors. Cadaret, Grant & Co., Inc. uses several methods to monitor statements of this nature, because they are not permitted. The methods include reviewing advisors’ e-mail communications, written communications, […]