As a client of Founders Financial Securities (“FFS”), your privacy is of the utmost importance.
Revenue Sharing Practices
Client Disclosure Statement
FFS offers a wide variety of products and programs including securities and fixed income, mutual funds, annuities, life insurance, and investment programs. Collectively, we refer to the companies through which these programs are offered as Approved Product Companies. FFS maintains an approved product list that contains a wide variety of over 200 Approved Product Companies.
FFS has a few unique relationships with a select group of Approved Product Companies that assist FFS in sponsoring conferences or seminars (“Sponsoring Companies”). Sponsoring Companies also are afforded the opportunity to communicate and otherwise engage with registered representatives via the Firm’s electronic platforms and, in some cases, in person. The purpose is to educate registered representatives on financial products and resources and make registered representatives aware of how these financial products could potentially help a client achieve their investment goals. These Sponsoring Companies pay the Firm a fee for these opportunities. The opportunity that Sponsoring Companies have to communicate with the Firm and its registered representatives, could influence investment decisions or investment recommendations and may constitute a conflict of interest because the Sponsoring Companies have an opportunity to communicate directly with registered representatives that other service providers and investment managers may not have. Of course, FFS’ Registered Representatives are not required to recommend any of these particular products to you. Our current Sponsoring Company List can be found in the firm’s Form ADV-Part 2A.
The revenue sharing arrangements outlined above will not be applicable to ERISA accounts where Founders serves as a fiduciary. There are also some Approved Product Companies that exclude all ERISA accounts from their revenue sharing payments to Founders.
The Firm believes that, in general, Sponsoring Companies offer investment and advisory products and services of a high quality. However, the Firm does not guarantee that these products and services will perform better than others that are available and encourages its Registered Representatives to consider any company whose products and services might be suitable for you.
In accordance with regulations, FFS has developed a Business Continuity Plan (“BCP’) to address how we will respond to events that significantly disrupt the operation of our business. Since the timing and impact of disasters and disruptions are unpredictable, FFS will be flexible in responding to actual events as they occur.
For more information about Founders’ BCP, please refer to the Business Continuity Plan section of our Form ADV Part 2-A.
Order Routing Practices
Client Disclosure Statement
FFS is required to make available quarterly reports of our routing practices. These reports identify the significant venues where our customer’s orders were routed for execution during the previous calendar quarter. FFS transmits all equity orders to our clearing firm, Pershing, who may then route customers’ orders to various venues for execution. A written copy of this report is available by contacting your registered representative. You can also access our firm’s quarterly report at: www.orderroutingdisclosure.com (in the “enter broker-dealer’s full name” field, enter: proequities inc).
Form ADV Part 2-A
Click here to access the most recent version of our Form ADV Part 2-A.
Click here to access the most recent version of our Customer Relationship Summary.