About NFP Securities, Inc.
NFP Securities, Inc. is a registered broker/dealer and investment advisor. Through our network of over 1000 independent registered representatives nationwide, we provide a variety of investment and insurance products and services to meet the needs of our clients. We are a member of the Financial Industry Regulatory Authority (FINRA), registered with the Securities and Exchange Commission (SEC), and registered and qualified to do business in all fifty states.
NFP Securities, Inc. is a wholly owned subsidiary of National Financial Partners Corp. (NFP).
NFP Securities, Inc. is committed to a successful relationship with each of our clients. We believe a foundation of that relationship is a mutual understanding of the responsibilities we each have to foster the success of that relationship. Following is a description of our commitment to and expectations of you.
- We believe mutual trust is key to any relationship. We will strive to earn and keep your trust.
- We will assist you to understand your investment choices and the risks associated with those choices.
- We will be available to discuss your investments, insurance and financial services needs and to discuss changes in those needs or your account information.
- We will provide your representative with the support necessary for you to receive quality service. The representative assigned to your account is your primary contact with NFP Securities, Inc.
- We will make available to you timely and accurate information regarding the investments and insurance you own and their current value(s).
- We will make available to you information regarding the commissions and fees that you pay for your investments and insurance and information about our compensation.
- We will respond to your concerns and complaints in a reasonable and timely manner. If your representative is unable to address your concern, you may always contact our home office at 800-880-0080.
- You will provide us with relevant and accurate information regarding your investment objectives, risk tolerance, time horizon, and financial condition, as well as updates and changes to such information.
- You will review and understand the investments, insurance, and recommendations provided to you and will let us know about any questions or concerns you have regarding the financial services you receive from or through NFP Securities, Inc. You will understand that all investments have some amount of risk and that you may lose money on any investment.
- You will carefully review any sales literature, prospectuses or other offering documents related to investments or insurance you purchase.
- You will, as necessary, seek an attorney, accountant or tax advisor for information regarding taxes and legal matters.
- You will regularly review the investments or insurance you own and understand the current value of your accounts.
- You will promptly address any concerns you have regarding your investments or insurance by speaking with your representative or contacting NFP Securities, Inc.
NFP Securities, Inc. Business Continuity Plan Disclosure
NFP Securities, Inc. is committed to providing timely service to our clients. This document is to inform you of our ability to respond to certain business disruptions. NFP Securities, Inc. is an introducing broker/dealer and, as such, we rely on our correspondent clearing firms to perform certain functions on our behalf, including the execution of securities transactions and the maintenance of customer funds and securities. Our ability to respond to certain business disruptions is partially dependent on our clearing firms.
We maintain a business continuity plan that includes back-up facilities and arrangements at redundant data centers and alternate processing facilities to address interruptions to our normal course of business. The plan is reviewed annually, updated as necessary, and subject to modification from time to time. Any critical changes to the plan will be posted to this website and may also be requested in writing to NFP Securities, Inc., 1250 Capital of Texas Hwy. Suite 125, Austin, TX 78746.
As described below, our plan outlines the actions NFP Securities, Inc. will take in the event of a single building or a citywide or regional incident. These actions include relocating technology and operational personnel to pre-assigned alternate locations as necessary. Although we intend to continue business in the event of a business disruption, there are some disruptions that may render us unable to continue business. Under such circumstances, we cannot guarantee that we will be able to follow our stated course of action. However, we will take steps designed to ensure that clients will be able to access their funds and securities within a reasonable time.
NFP Securities, Inc. Response to Events of Varying Scope.
The following sections describe specific events and NFP Securities, Inc.'s corresponding general response to such events.
Disruption to a Single Building or Firm-Only Business Disruption
These disruptions may be caused by physical damage, technology problems, or an inability to have personnel arrive at an office. In the event that there is a significant business disruption to a single building or our internal primary systems, NFP Securities, Inc. may, if necessary, transfer its operations or route incoming calls to an alternate geographic location. In this process, clients may experience a minor delay in reaching NFP Securities, Inc. due to increased client calls, technology delays, or other minor difficulties arising from the transfer of operations. In addition, if our clearing firms are affected by a single building or firm only business disruption, clients may experience additional delays.
Business-District, Citywide, or Regional Disruption
In the event that there is a significant business disruption that affects the business district, city, or region where any of our primary systems are located, NFP Securities, Inc. may, if necessary, transfer its operations or route incoming calls to another office in an alternate geographic location office. In this process, clients may experience a minor delay in reaching NFP Securities, Inc. due to increased client calls, technology delays, or other minor difficulties arising from the transfer of operations. If the disruption is significant, NFP Securities, Inc. may transfer its operations to a third-party service provider. In addition, if our clearing firms are affected by a business-district, citywide, or regional disruption, clients may experience additional delays.
NFP Securities, Inc. operational facilities are equipped for resumption of business and are tested as necessary. Our anticipated recovery time from a business district or citywide disruption, including those involving a relocation of personnel or technology, is (4) hours. External conditions and circumstances beyond our control may negatively impact these recovery times and though we have plans in place, we cannot guarantee that we will be successful in achieving recovery in the times noted above. For example, we may not be able to implement a plan during a disaster as quickly as we expect, or there may be disasters that we have been unable to anticipate and for which we have no plan. Additionally, if parts of our plan are dependent upon third parties, we may have no control over the success or failure of the third party to respond appropriately to the challenges posed at the time of the disaster.
As a customer of NFP Securities, Inc., you may have your accounts held at our clearing firm National Financial Services LLC. It is important to note that should the business continuity of NFP Securities, Inc. be interrupted and you find you are unable to get through to your representative, the following information is provided for those emergency situations.
National Financial Service LLC Business Continuity Statement
As you may know, your broker/dealer and National Financial Services LLC (NFS) have an agreement in which NFS may provide trade execution, clearing, and other related services for your brokerage account. In connection with these services, NFS is required to communicate its position on business continuity practices. At NFS, we recognize how heavily you and your broker/dealer rely on our systems and services. We also recognize that the unexpected can and does occur-from simple situations to major outages. NFS has successfully supported critical business activities during disruptions of normal business processes resulting from hurricanes, tornados, blizzards, and other natural and man-made disasters. NFS wants you to know that we have an extensive plan in place to safeguard your assets and protect vital account information in the event of a business disruption. The plan can be viewed at the following on the NFS website or they may be reached at 800-801-9942.
Bank Deposit Sweep Program
For more information click here.
Select Provider Relationships
We make available hundreds of different mutual fund and variable insurance products to our representatives and customers. We also make available many retirement vehicles such as 401(k) and group variable annuity products, as well as alternative investment products such as limited partnerships, real estate investment trusts, and hedge fund products. Our representatives are free to choose what products they sell to customers from among these many products. Because of the numerous investment and insurance alternatives available, NFP Securities, Inc. focuses on the sale of products of a select number of providers ("Select Providers"). Select Providers are given increased access to our representatives for the purpose of providing marketing, education and product support.
Our list of Select Providers is available here.
NFP Securities, Inc. receives both financial and non-financial support from Select Providers. We receive more compensation for the sale of products of Select Providers than for the products of other providers we sell and thus have a financial incentive to sell the products of Select Providers. The amounts and forms of compensation we receive from Select Providers vary based on a number of factors including level of past sales, prospective future sales and the types of service and access to distribution we provide. We receive one or more of the forms of compensation described below in connection with our arrangements with each Select Provider.
These payments are made from the resources of the investment adviser or distributor (or one of their affiliates) in the case of mutual fund Select Providers, and from the resources of the insurance company (or its affiliate) in the case of variable annuities, group annuities, and variable life products. The payments typically are in addition to the sales charges, rule 12b-1 fees, redemption fees, deferred sales charges and other fees and charges you will find described in the prospectus fee tables or offering documents of the various products.
Select Providers of mutual funds pay us either an amount of up to 0.20% of new sales of products attributable to us or fixed fees of up to $160,000 annually to support and participate in various conferences and seminars conducted by NFP Securities, Inc.
Select Providers of variable annuities pay us or our affiliated insurance agencies an amount of up to 0.25% of the amount of our new sales of their products quarterly. Such providers may also pay us fixed fees of up to $25,000 annually to support and participate in various conferences and seminars conducted by NFP Securities, Inc.
Equity Index Annuities
Select providers of equity index annuities pay us or our affiliated insurance agencies an amount of up to 2.0% based on gross new sales volume.
Select Providers of 401(k), group variable annuity and other retirement products pay us an amount of up to 0.25% of new investments in such products and an annual amount of up to 0.05% of the amount of our customers’ assets under management at the Select Provider. In addition, such providers pay us fixed fees of up to $150,000 annually to support and participate in NFPSI conferences and seminars. We may pay our financial advisors a higher percentage of compensation for sales of certain Select Provider group variable annuity products than for other such products we sell.
Select Providers of alternative investment products, including limited partnership, real estate investment trust (REIT), and hedge fund products, pay us an amount of up to 1.50% of new investments in such products. In addition, such providers pay us fixed fees of up to $45,000 annually to support and participate in NFPSI conferences and seminars. Select Providers of alternative investment products also pay us an initial fee of up to $5,000 and an annual fee of up to $1,500 to support the due diligence efforts of NFPSI related to such products and providers.
Variable Life Insurance
Select Providers of variable life insurance products may pay NFP Securities, Inc. or our affiliated insurance agencies wholesale overrides in an amount of up to approximately 45% of first year target premium and an amount of up to approximately 4% of any renewal premiums. Select Providers of variable life products also pay us or our affiliated insurance agencies up to $45,000 annually to support various workshops and meetings, to support development of account management tools and other technology and to support our due diligence efforts. In the case of variable life insurance products, Select Providers provide a variety of policy and underwriting support services to NFPSI, our affiliated insurance agencies and our financial advisors. We may pay our financial advisors a higher percentage of compensation for sales of Select Provider variable life insurance products than for other such products we sell.
For additional information regarding fees and compensation, you should refer to the prospectus and statement of additional information applicable to your investment.
Clearing and Order Fulfillment Services
NFP Securities, Inc. utilizes the services of other broker-dealers to execute or assist NFP Securities, Inc. to fill customer orders for the purchase and sale of securities. NFP Securities, Inc. may receive compensation from such broker-dealers in connection with customer orders. NFS LLC provide clearing services for NFP Securities, Inc. and its customers, and NFP Securities, Inc. may receive execution price discounts and other compensation from these companies.
In addition, pursuant to its clearing agreement with NFS, NFS may remit shareholding servicing fees for money market mutual funds affiliated with NFS in amounts set forth in the prospectus or other offering document for such funds.
NFP Securities, Inc. may utilize the services of Advisors Asset Management, Inc. (AAM) in connection with the purchase and sale of fixed income securities (bonds and other debt instruments). NFP Securities, Inc. receives compensation from AAM as a percentage of the concessions AAM charges for fixed income security orders executed by AAM on behalf of NFP Securities, Inc.
FINRA and SEC make available information regarding investments, insurance and other financial services. Following are links to their investor education resources for your convenience. When you access these websites you are leaving NFP Securities, Inc.'s website.
FINRA Home: www.finra.org