APW Capital, Inc. Commission and Fee Schedule
| Item Description |
CCM Managed 1
|
Aurora Managed 2
|
APW Capital Brokerage Only 3
|
|---|---|---|---|
| TRANSACTION FEES | |||
| Equity / ETF Trades – 5,000 shares of less | $20.00 | $20.00 | $20.00 |
| Over 5,000 shares | + $0.01/share | + $0.01/share | + $0.01/share |
| Dividend Reinvestment | N/C | N/C | N/C |
| Options | $20.00 | $20.00 | $20.00 |
| + $0.50/contract | + $0.50/contract | + $0.50/contract | |
| Mutual Funds – Purchases - Redemptions | $24.00 | $24.00 | $24.00 |
| Pershing Fund Vest (NTF) | N/C | N/C | N/C |
| NTF Fund held less than 30 days | $50.00 Redemption | $50.00 Redemption | $50.00 Redemption |
| Mutual Fund Exchanges | $8.00 | $8.00 | $8.00 |
| Systematic Mutual Fund Purchases (Redemptions, Dollar Cost Averaging) | $2.00 | $2.00 | $2.00 |
| Mutual Fund Post Settlement Cancelation Fee | $5.00 | $5.00 | $5.00 |
| Fixed Income Securities (Bonds) | $35.00 | $35.00 | $35.00 |
| Exchange Traded Bonds | + $1.00/bond | + $1.00/bond | + $1.00/bond |
| Bond Redemptions | $10.00 | $10.00 | $10.00 |
| OTHER FEES | |||
| Confirmation Fee – Hard Copy | $2.75 | $2.75 | $2.75 |
| E-Delivery | N/C | N/C | N/C |
| Statement Fee – Hard Copy | $0.75 | $0.75 | $0.75 |
| E-Delivery | N/C | N/C | N/C |
| Re-Org Fee – Voluntary | $50.00 | $50.00 | $50.00 |
| Mandatory | $15.00 | $15.00 | $15.00 |
| Wire Requests (distributions) | $25.00 | $25.00 | $25.00 |
| Overnight Check Requests (distributions) | $12.00 | $12.00 | $12.00 |
| Returned Checks (deposits) | $25.00 | $25.00 | $25.00 |
| Retirement Accounts - Annual Fee | $45.00 | $45.00 | $45.00 |
| Termination Fee | $95.00 | $95.00 | $95.00 |
| Account Transfers (Out) - Non Retirement Accts | $100.00 | $100.00 | $100.00 |
| Holding Alternative Investments - Initial Purchase | $50.00 | $50.00 | $50.00 |
| Annual Fee | $125.00 | $125.00 | $125.00 |
| Margin Extensions | $10.00 | $10.00 | $10.00 |
| Cash Management Account Features (Optional) | |||
| Check Writing & Online Bill Pay | $25.00/year | $25.00/year | $25.00/year |
| Check Writing, Debit Card & Bill Pay | $50.00/year | $50.00/year | $50.00/year |
| Cost Basis Maintenance (Optional) | $24.00/year | $24.00/year | $24.00/year |
Understanding our Fees and Compensation Practices
June 2020
| This document contains important information about (i) how APW Capital, Inc., Aurora Private Wealth, Inc., and/or Comprehensive Capital Management, Inc. (“our”, “us”, and “we”) are paid by you; (ii) payments we receive from third parties, (iii) how your financial professional is compensated, and (iv) conflicts of interest resulting from our compensation structures. We reserve the right to change our programs, fees, and payment structures at any time. In addition, certain of APW Capital, Inc.’s investment professionals are licensed through unaffiliated investment advisers. You should review their Form ADV Part 2A and wrap fee brochures for information about their fees and compensation practices. |
| About our fees, charges and other compensation—general |
| We want to make sure our clients are informed about the costs of the various investment products and services that we offer, which is why we created this disclosure document about our fees and how we generate revenue. While there are similarities between the brokerage and advisory services we provide, there are important differences, including the pricing structures for these services. For detailed information regarding the distinctions between brokerage and advisory services, please review the following disclosure “Conducting business with APW Capital, Inc., Aurora Private Wealth, Inc., and Comprehensive Capital Management, Inc.—important distinctions between brokerage and advisory services” which is available at www.aurorapw.com/distinctions.php. |
| Brokerage relationships generate transaction-based compensation. |
| In brokerage relationships customers pay transaction-based fees in connection with the products and services they receive, such as buying and selling stocks, bonds, mutual funds, annuity contracts and other investment products, as well as trading and exercising options. These include commissions, transaction fees, loads and sales charges. Compensation to APW Capital, Inc. includes commissions, sales concessions, transaction fees, sales charges or expenses that are built into the purchase price as well as compensation from third parties in some cases. |
| Advisory relationships are subject to fee-based compensation. |
| In our advisory relationships, clients pay a set fee or a fee based on a percentage of the assets under our management based on their written advisory agreement. In some circumstances, we receive additional compensation from third parties in connection with the assets in clients’ advisory accounts. This compensation is in addition to the fee that a client pays for investment advisory services. Unaffiliated investment advisers determine their own compensation practices. |
| Pricing of products and services |
| Clients may purchase many of our products and services in either transaction-based or fee-based accounts, or a combination of both. |
| Factors that affect pricing. |
| It is difficult to compare brokerage and advisory accounts solely on the basis of price. You may pay more or less in an advisory program than you would pay if you purchased the products and services separately in a brokerage account. The costs of either type of account depend on a number of factors, including: |
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| You should consider the costs and services associated with each option carefully and speak with your financial professional about which approach is most appropriate for you. Certain financial professionals associated with APW Capital, Inc. own, operate, are employed by or associated with unaffiliated investment advisers. In these cases, they may only work with certain types of investors, may determine to offer predominantly advisory accounts, or may impose minimum asset levels on advisory accounts. They may be associated with APW Capital, Inc. solely as an accommodation or only so that their advisory clients have access to a specific product—such as a variable annuity. |
| Sources of revenue |
| We earn revenue from our clients, from Pershing, LLC (APW Capital, Inc.’s clearing broker-dealer), and from certain third parties, including issuers and product vendors. |
| Sources of revenue we receive from clients |
| In general, we receive revenue from clients in the following ways: |
|
| These sources of revenues are debited from client accounts unless stated or agreed to otherwise. |
| Sources of revenue we receive from third parties |
| In addition to revenue that we receive from clients, we earn revenue from third parties and affiliates in the following ways: |
|
| Correcting trading and other errors |
| We have procedures for resolving trading and other errors that occur from time to time. We maintain one or more error accounts to facilitate handling trading and other errors. We make customers whole for any errors resulting in loss. Gains attributable to trading errors are retained by us. |
| Financial Professional Compensation |
| In general, we pay our financial professionals a portion of the revenues that they generate based on the investment services that they provide to our customers and clients less certain expenses that they owe to us. Unless noted above, financial professionals share in all revenues that we earn. The percentage that they earn varies based on our agreement with them. In addition, financial professionals are eligible to receive non-cash compensation from various sources. For example, they may receive occasional gifts from vendors or product sponsors, the receipt of meals, tickets or entertainment, reimbursements for hosting events, so long as they are consistent with our policies and procedures. |
| Conflicts of Interest |
| As with any business, we and our financial professionals face situations where our interests conflict with yours, based on our compensation structures, the products and services we offer, and our relationship with multiple clients. Examples of these conflicts of interest are described below. |
| Our financial professionals and their conflicts |
| The receipt of cash and non-cash compensation from sources other than clients, and the variation in the fees that these products pay, create an incentive for our investment professionals to recommend certain products over others. We address these conflicts of interest by maintaining policies and procedures on the suitability and supervision of the products and services we offer to you, and by disclosing these conflicts so that you can make a fully informed decision. |
| Revenue sharing |
| When we receive revenue sharing compensation, it presents a conflict of interest between our interests and those of our clients. Because these payments are not shared with our financial professionals, it is a conflict only at the firm level but can create incentives for us to promote vendors and products for which we receive revenue sharing payments. |
| Non-cash compensation |
| When a vendor determines to provide us or a financial professional with assistance towards a marketing, education or client appreciation event, or provides a financial professional with an occasional gift, meals or entertainment, it creates a conflict of interest. |
| The receipt of these reimbursements or gratuities and the increased exposure to vendors who sponsor these events or provide these gratuities, may lead a financial professional to recommend the products and services of those vendors over those that do not provide these gratuities. |
| Rollovers from an employer-sponsored retirement plan into an IRA |
| When, based on the recommendation of one of our financial professionals, you roll over assets of an employer-sponsored retirement plan (such as a 401(k), 403(b), 457(b), profit sharing or defined benefit pension plan) to an IRA that we manage or provide advice on, a conflict of interest exists due to the financial benefit for us and our financial professionals. You are responsible for evaluating the investment and non-investment considerations for moving such assets (versus continuing to hold them in your employer-sponsored retirement plan). |
| Affiliated Insurance Company and Insurance Agents |
| Aurora Insurance Services, Inc. (“AIS”), a licensed insurance producer (agency), is licensed to sell life, accident, health, sickness and variable insurance. Aurora Insurance Services, Inc. is under common control with us. Management personnel of our firm and financial professionals may be agents for various insurance companies, including AIS. As such, these individuals and AIS are able to receive separate, yet customary commission compensation from the sale of insurance products. The receipt of these additional revenues creates a conflict of interest, which we seek to mitigate by disclosing it to our customers and clients. |
| Product Related Information Regarding Fees, Charges and Other Compensation |
| This discussion provides an overview of the compensation APW Capital, Inc. receives based on the specific products and services that our clients typically purchase in a brokerage account. Some of this compensation is paid to us by clients and other compensation is paid to us by third parties. If you believe that a product we provide is not covered in this guide, please contact your financial professional. Financial professionals receive compensation as noted above. Investment advisory fees and expenses are described in the respective Form ADV Part 2 for the service that you receive and may be disclosed in an unaffiliated investment adviser’s Form ADV Part 2. |
| Product | Fees and Expenses Incurred by the Client | How We Receive Revenue | Range of Amount of Compensation |
|---|---|---|---|
| Fixed, fixed indexed, single premium immediate, deferred income, variable annuities and Variable Universal Life | Typically, fixed annuities do not have upfront sales loads or ongoing expenses. The insurance company’s costs are built into the interest rate paid on the contract. However, depending on the terms of the annuity, you can pay additional annual fees, including premium taxes and fees for any optional riders selected. Optional riders are provisions that may be added to an annuity contract to increase or limit benefits the contract otherwise provides. Annual fees are generally deducted from the annuity contract value. If the annuity is surrendered before a designated period of time, the client will generally have to pay the insurance company a surrender fee specified in the contract (the amount is reduced over time and generally lasts 5 – 10 years). All amounts payable to the insurance company are disclosed in the annuity contract. |
For insurance products, where our affiliate is the insurance agency of record, we receive commissions for the sale of an annuity from the insurance company issuing the annuity. The client does not pay us directly. Where the product involved is a security, we receive commissions for the sale of an annuity from the insurance company issuing the annuity. The client does not pay us directly. The amount of compensation that we receive can vary depending upon, among other factors: (i) the duration of the annuity; (ii) the age of the client; (iii) the amount invested in the annuity; (iv) the chosen share class and/or; (v) the commission option selected by your financial professional. Insurance companies allow your financial professional to choose among various commission structures, which generally provide that when there is a higher first-year commission, there will be a lower or $0 trail commission (and vice versa). |
For these types of products, insurance companies generally pay us:
|
| Equity securities, ETFs, and Options | Clients pay a commission to buy or sell individual equity securities and ETFs. Clients also pay a commission to buy or sell options based on the number of contracts and the principal amount of the trade. | We receive the commissions that clients pay for purchasing and selling individual equity securities, ETFs, and options. | The specific rates for these commissions is available at https://www.aurorapw.com/fees.php. The amounts referenced reflect default rates and may be modified at the discretion of your financial professional, subject to our supervision. |
| Mutual Funds | Mutual funds have ongoing expenses that clients pay as long as they hold the funds. Most funds pay a sales commission when the fund is purchased in addition to the annual costs that are associated with operating the fund. Annual operating expenses include management fees, 12b-1 fees (payments made in connection with marketing and distribution expenses that may include trailing compensation), the cost of shareholder mailings and other expenses. Investors should always consult the fund’s prospectus for specific details regarding fees, expenses and charges. For accounts maintained at Pershing, LLC clients are also subject to exchange fees, systematic purchasing fees, and cancellation fees. | We receive the sales commissions and ongoing fees paid by the mutual funds. |
The specific transaction fees that we impose are available at https://www.aurorapw.com/fees.php. The amounts referenced reflect default rates and may be modified at the discretion of your financial professional, subject to our supervision. In addition, we stand to receive the following compensation from mutual funds. Upfront sales charge - Upfront sales charges can range from 0.00% – 5.75% and are described in the prospectus. Many mutual funds allow for a reduction or waiver of the upfront sales charge based upon, among other things, the amount of your total investments in the particular mutual fund family, investor type, as well as the type of account in which the assets are invested (i.e., advisory). Requirements for a reduction or waiver of upfront sales charges are detailed in the prospectus. Back-end sales charge - These are sales charges that are applied upon redemption of mutual fund shares within a specified number of years (varies by prospectus). These sales charges are also referred to as a Contingent Deferred Sales Charge, or CDSC. These charges generally range from 1% – 5.5%, but typically are 4% for B shares and 1% for C shares. These charges can be reduced or eliminated based on how long the shares are held and as described in the prospectus. 12b-1 fees - Many mutual funds pay a 12b-1 fee to us directly from the fund’s assets. Like other fees and expenses in a mutual fund, 12b-1 fees will reduce investment returns. The exact amount varies among funds and share classes but is disclosed in the applicable fund prospectus. The typical ranges of 12b-1 fees in mutual funds we offer are as follows: |
| Fixed Income Securities (corporate, government, sovereign, and municipal bonds) | For taxable fixed income securities purchased or sold in the secondary market, clients pay a markup (in the case of a purchase) or a markdown (in the case of a sale). | We receive the markups that are disclosed on our website. |
The default rates are available at https://www.aurorapw.com/fees.php. The amounts referenced reflect default rates and may be modified at the discretion of your financial professional, subject to our supervision. Your financial professional is able to alter the markup or markdown on a purchase or sale in accordance with our policies below: Maximum “mark-up” you may pay on top of purchase price: 2.0%. Maximum “mark-down” that may be subtracted from sale price: 2.0%. |
| Alternative Investments | We receive commissions on the sale of alternative investments that you purchase (i.e., oil and gas private placements, limited partnerships, etc.) | We receive a marketing allowance from certain alternative investments, but we do not share these with your financial professional. |
For these types of products, the issuer generally pays us: We receive marketing allowances between 0-1.25% on the amount of certain, but not all, alternative investments. |
