Hazlett, Burt & Watson, Inc. is a broker-dealer and an investment adviser registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA®) and the Securities Investor Protection Corporation (SIPC®). Brokerage and investment advisory services and fees differ, and it is important for the retail investor to understand the differences.
Free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.
What investment servicers and advice can you provide me? Hazlett, Burt & Watson, Inc. offers both brokerage and investment advisory services to retail investors.
Conversation Starters. Ask your financial professional—
What fees will I pay? The fees you pay depend on whether you choose brokerage services, advisory services, or both.
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
Conversation Starters. Ask your financial professional—
When we provide you with a recommendation as your broker- dealer or act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the recommendations and investment advice we provide you. Here are some examples to help you understand what this means.
Examples of Ways We Make Money and Conflicts of Interest.
Conversation Starter. Ask your financial professional—
How do your financial professionals make money?
Our financial professionals are compensated in a variety of ways based on the percentage of revenue generated from sales of products and services to clients and/or total assets under advisement, including brokerage account activity. Typically, a financial professional’s payout increases at larger levels of investments managed for clients and larger levels of revenue generated. As a result, financial professionals have an incentive to provide brokerage recommendations that result in selling more investment products and services. Financial professionals also have an incentive to provide brokerage recommendations to gather more assets under management and to increase brokerage trading activity. Additional information on cash and non-cash compensation received by Financial professionals is available at www.hazlettburt.com/Regulation BI. Please refer to Regulation Best Interest Disclosures, and Form ADV Part 2A.
Do you or your financial professionals have legal or disciplinary history? Yes – Visit Investor.gov/CRS for a free and simple search tool to research us and our financial professionals.
Conversation Starter. Ask your financial professional—
If you would like additional information about our brokerage or investment advisory services, to request the most up-to-date information, or to request a copy of our most current Customer Relationship Summary or Regulation BI Disclosure Document, please visit www.hazlettburt.com/Regulation BI, or you may call 304.233.3312.
Conversation Starter. Ask your financial professional—
This document provides additional information related to the brokerage services we offer and provides details regarding material conflicts of interest that arise through our delivery of brokerage services to you. We encourage you to review this information carefully, along with your account agreement documents and disclosures you have received from Hazlett, Burt & Watson, Inc. (Hazlett).
Hazlett is registered with the Securities and Exchange Commission (SEC) to offer both brokerage and investment advisory services to retail customers. This document primarily provides additional information and disclosures related to our brokerage services. For more information related to our investment advisory services, please refer to our Form CRS Relationship Summary available at www.hazlettburt.com/Regulation BI. Our Form CRS contains important information about the types of services we offer, both brokerage and investment advisory, along with general information related to fees, costs, conflicts of interest, standards of conduct and disciplinary history.
When you establish a brokerage account with us, you have the ability to buy, sell and hold investments within your account. Our primary service provided in this capacity is our trading capability. We execute trade purchases and sales on your behalf, as directed by you. In a brokerage relationship we can trade with you for our own account, for an affiliate, or for another client, and we earn commissions on those trades. The capacity in which we act is disclosed on your trade confirmation. However, we are not required to communicate it in advance, or obtain your consent.
Cash and Margin Accounts
We offer brokerage services on either a cash or margin basis, or both. In a cash brokerage account, you must pay for your purchases in full at the time of purchase whereas in a margin brokerage account, you may borrow a certain limit based on the value of the investment securities maintained in your account. This lending is generally referred to as a “margin loan,” and the amount borrowed is secured by the securities in your account (collateral). You will incur interest charges associated with your borrowing. Not all investment securities are eligible to be used for collateral purposes. Margin lending is made available through our clearing firm, National Financial Services.
A margin-enabled brokerage account has specific eligibility requirements, unique costs, and governing regulatory requirements. You must execute a separate margin agreement before engaging in margin brokerage activity. Included with your margin agreement is a copy of the Margin Disclosure Statement. This statement contains important information you should understand and consider before establishing a margin brokerage relationship. For more information on our margin brokerage services, please contact a Hazlett, Burt & Watson, Inc. financial professional or refer to our Margin Disclosure Statement available at www.hazlettburt.com/Regulation BI.
We offer various types of brokerage accounts including individual and joint accounts, custodial accounts, Delivery Versus Payment (DVP) accounts, estate and trust accounts, partnership accounts, individual retirement accounts and other types of retirement accounts as outlined in our brokerage account agreements and related disclosures. You should refer to these agreements and disclosures for more information concerning available account types, or you may speak with your Hazlett financial professional.
Incidental Services, Recommendations and Account Monitoring
Within your brokerage account, we may also provide other incidental services such as research reports, and recommendations to buy, sell, or hold assets. When we make a securities recommendation, investment strategy recommendation or recommendation to rollover assets from your Qualified Retirement Plan (QRP) to an Individual Retirement Account (IRA), the recommendation is made in our capacity as a broker-dealer unless otherwise stated at the time of the recommendation. When we act in a brokerage capacity, our fiduciary capacity only extends to the execution of our recommended trades. A brokerage account does not carry an ongoing fiduciary relationship with you.
It is important for you to understand that when our financial professionals make a brokerage recommendation to you, we are obligated to ensure the recommendation is in your best interest, considering reasonably available alternatives, and based on your stated investment objective, risk tolerance, liquidity needs, time horizon, financial needs, tax status, and other financial information you provide us. You may accept or reject any recommendation. It is also your responsibility to monitor the investments in your brokerage account, and we encourage you to do so regularly. We do not commit to provide on-going monitoring of your brokerage account. If you prefer on-going monitoring of your account or investments, you should speak to your Hazlett financial professional about whether an investment advisory relationship is more appropriate for you.
Please also consider that from time to time we may provide you with additional information and resources to assist you with managing your brokerage account. This may include but is not limited to educational resources, sales and marketing materials, performance reports, asset allocation guidance, and/or periodic brokerage account reviews. When we offer these services and information, we do so as a courtesy to you. These activities are not designed to monitor specific investment holdings in your brokerage account; they do not contain specific investment recommendations about investment holdings, and you should not consider them a recommendation to buy, sell, or hold any particular securities for your brokerage account. Upon your request, we will review such information and reports with you and may provide you with investment recommendations, but we are not under a specific obligation to do so.
Clearing and Custody
We have entered into a clearing and custody agreement with National Financial Services (“NFS”) to carry your account and provide certain back office functions. We and NFS share responsibilities with respect to your account as set forth in the Brokerage Account Customer Agreement that was delivered to you upon the opening of your account. Please refer to this document for more information on how such responsibilities have been allocated between us.
It is important for you to understand that all investment recommendations and activities involve risk, including the risk that you may lose your entire principal. Further, some investments involve more risk than other investments. Higher-risk investments may have the potential for higher returns but also for greater losses. The higher your “risk tolerance,” meaning the amount of risk or loss you are willing and able to accept in order to achieve your investment goals, the more you may decide to invest in higher-risk investments offering the potential for greater returns. We attempt to align risk tolerances with investment needs to offer you different investment objectives from which to choose (see five common investment objectives below). You should select the investment objective and risk tolerance best aligned with your brokerage account goals and needs.
|Investment Objective||Investment Objective Description||Risk Tolerance||Risk Tolerance Definition|
|Preservation of Capital||Generally seeks to maintain principal and is interested in investments with very low historical risk of loss of principal. Typical investments may include money market funds and high-quality short-term fixed-income investments||Conservative||Conservative Preservation of Capital investors generally assume lower risk, but may still experience losses or have lower expected returns.|
|Moderate||Moderate Preservation of Capital investors are willing to accept a modest level of risk that may result in increased losses in exchange for the potential to receive modest returns.|
|Aggressive||Aggressive Preservation of Capital investors seek a higher level of returns and are willing to accept a higher level of risk that may result in greater losses.|
|Income||Generally seeks to generate income from investments and is interested in investments with low historical risk of loss of principal. Typical investments may include high-quality short- and medium-term fixed-income investments, short-term bond funds, and covered call options.||Conservative||Conservative Income investors generally assume lower risk, but may still experience losses or have lower expected income returns.|
|Moderate||Moderate Income investors are willing to accept a modest level of risk that may result in increased losses in exchange for the potential to receive modest income returns.|
|Aggressive||Aggressive Income investors seek a higher level of returns and are willing to accept a higher level of risk that may result in greater losses.|
|Capital Appreciation||Generally seeks to grow principal value over time and is willing to invest in securities with moderate to above-average historical risk of loss of principal. Typical investments may include common stocks, lower-quality medium-term fixed-income investments and equity mutual funds or index funds.||Conservative||Conservative Capital Appreciation investors generally assume lower risk, but may still experience losses or have lower expected returns.|
|Moderate||Moderate Capital Appreciation investors are willing to accept a modest level of risk that may result in increased losses in exchange for the potential to receive modest returns.|
|Aggressive||Aggressive Capital Appreciation investors seek a higher level of returns and are willing to accept a higher level of risk that may result in greater losses.|
|Trading Profits||Generally seeks to take advantage of short-term trading opportunities (a higher risk strategy. Typical investments may include short-term purchases and sales of volatile or low-priced common stocks, equity or index options strategies such as puts or calls, spreads, straddles, and combinations.||Conservative||The higher risk nature of the Trading Profits, as an investment strategy, may not be an appropriate strategy for a Conservative risk tolerance.|
|Moderate||Moderate Trading Profits investors are willing to accept a modest level of risk that may result in increased losses in exchange for the potential to receive modest returns.|
|Aggressive||Aggressive Trading Profits investors seek a higher level of returns and are willing to accept a higher level of risk that may result in greater losses.|
|Growth & Income||Generally seeks a mix of growing principal value and generating income from investments, and are willing to portfolios emphasize capital appreciation with minimal consideration for current income and usually have significant exposure to more volatile growth assets.||Conservative||Conservative Growth and Income investors generally assume a lower amount of risk but may still experience losses or have lower expected returns.|
|Moderate||Moderate Growth and Income investors are willing to accept a modest level of risk that may result in increased losses in exchange for the potential to receive modest returns.|
|Aggressive||Aggressive Growth and Income investors seek a higher level of returns and are willing to accept a higher level of risk that may result in greater losses.|
|Trading and Speculation||Trading and Speculation generally seeks a significant increase in principal, and is willing to accept a correspondingly greater degree of risk by investing in securities with high historical risk of loss of principal. Typical investments may include lower-quality long-term fixed-income investments, initial public offerings (IPOs) and volatile of low-priced common stocks. This strategy is a strategy that is more suited to an aggressive risk tolerance.|
Investment goals typically have different time horizons and different income and growth objectives. Generally, investment goals are scaled within a range, with “Income” investors typically holding the smallest percentage of higher-risk investments, followed by “Growth and Income” investors holding some higher-risk investments, and finally “Growth” investors holding a larger portion of their portfolio in higher-risk investments. Risk tolerance also varies and are generally measured in a manner that increases from “Conservative” to “Moderate” to “Aggressive,” and finally “Trading and Speculation.” Please refer to the preceding chart for details.
Our investment recommendations are based in part on your risk tolerance and investment objective as outlined above. You should carefully consider your investment objective and risk tolerance before accepting any investment recommendations we may provide. It is also important that you promptly notify us if your life circumstances, goals, investment objectives, or risk tolerance change so we may customize our recommendations to your current investment profile.
Your account includes a core account that is used for settling transactions and holding credit balances. Amounts credited to your core account will be invested in the core account investment vehicle you indicate on your account application. Different core account investment vehicles may have different rates of return and different terms and conditions, such as FDIC insurance or SIPC protection. This account enables you to earn a return on uninvested cash balances in your brokerage account. You will receive additional information regarding your core account in your account agreement(s). Please review these disclosures carefully.
There is no minimum initial account balance required to open a brokerage account with Hazlett. However, annual account maintenance/custody fees will be charged in accordance with Hazlett’s Client Account Service Fee schedule. Our financial professionals may establish their own minimum account balance requirements for the brokerage accounts they service. For example, a dedicated financial professional may choose to service only those brokerage account clients who satisfy account-specific or total household asset limits. Such minimums, if any, will be disclosed to you by your Hazlett financial professional.
Hazlett offers broker-dealer services individually customized to meet the specific needs of each client, taking into consideration your personal circumstances.
It is important to consider that while a brokerage relationship can be a cost-effective way of investing your assets, it is not for everyone given the fees and costs involved.
You will pay transaction-based fees for trades you decide to enter into, such as buying and selling stocks, bonds, Exchange Traded Products (ETPs), mutual funds, annuity contracts, exercising options and other investment purchases and sales. These transaction-based fees are generally referred to as a “commission,” “mark up,” “sales load,” or a “sales charge.” Transaction-based fees are based on a several factors, including, but not limited to:
Please note that you will also pay an Activity Assessment Fee based on the volume and price of shares traded, as well as a Service Fee in the amount of $9.95 per trade.
Account and Service Fees
You will pay fees for various operational services provided to you through your brokerage account. These fees are set at least annually and communicated to you through information included in your account statement and other notifications. These fees do not apply to all account types and may be waived under certain conditions.
You should understand that based on the brokerage service model appropriate for you, the same or similar products, accounts and services may vary in fees and costs. For more information concerning our administrative and service fees, please contact your Hazlett financial professional.
How We Are Compensated
We receive direct and indirect compensation in connection with your accounts. Direct compensation is taken directly from the relative account. Indirect compensation is compensation paid in ways other than directly from the account and may impact the value of the associated investments in your account. The sections below describe the compensation that we receive in connection with various investments that may be available to you. In many cases, the descriptions that follow refer to a prospectus or offering documents.
Financial Professional Schedules
The attached schedule details the commissions charged to you and received by us and your Hazlett financial professional for trades of securities, rights, and warrants.
For debt securities, including preferred securities and CDs, we may apply a variable and negotiable charge (i.e., markup or markdown) to your secondary market transaction. Please ask your Hazlett financial professional for more information. Additionally, we may incur gains (or losses) on positions we hold in inventory in response to market movements or other events that impact the value of the securities we own.
We currently offer a wide array of mutual funds varying in share class structure and investment style. If you invest in mutual funds, we may receive direct and indirect compensation in connection with such mutual fund investments, as described below.
12b-1/Shareholder Service Fees
Annual 12b-1 fees, also known as trails, are paid by the fund and paid to us out of fund assets under a distribution and servicing arrangement to cover distribution expenses and sometimes shareholder service expenses that we may provide on the fund’s behalf. Shareholder servicing fees are paid to respond to investor inquiries and provide investors with information about their investments. These fees are asset-based fees charged by the fund family. These fees range from 0.00% to 1.00%. These fees may be passed on to us and your financial professional as a service fee.
Front-end Sales Charge Fees/Contingent Deferred Sales Charges (CDSC)
Front-end sales charge fees may be charged and paid to us, including your financial professional, when you purchase a fund. The front-end sales charge is deducted from the initial investment on certain share classes. This charge normally ranges from 0.00% to 5.75%. Some purchases may qualify for a reduced front-end sales charge due to breakpoint discounts based on the amount of transaction and rights of accumulation. In addition, some purchases may qualify for a sales charge waiver based on the type of account, and/or certain qualifications within the account. You should contact your Hazlett financial professional to discuss your eligibility for sales charge waivers.
CDSC is a charge you pay upon withdrawal of money from a fund prior to the end of the fund’s CDSC period. CDSC charges can range from 0.00% to 5.50%. CDSC periods can range from zero to seven years. This charge typically exists only on share classes that do not have a front-end sales charge. It is sometimes referred to as the back-end load. CDSCs are not charged when you purchase a fund. The fee charged will depend on the share class purchased by the investor. A CDSC is not passed on to your financial professional. You can find a description of the amount and payment frequency of all fees and expenses charged and paid by the fund in the fund’s prospectus. Fees and expenses disclosed in the fund’s prospectus are charged against the investment values of the fund.
Annuities consist of fixed, index, and variable annuities. Under arrangements with insurance companies, we, including your financial professional, receive direct compensation in the form of commissions from the insurance companies for the sale of annuities, as well as indirect compensation in the form of trail commissions. Commissions and trails paid to us vary by product type and may vary by insurance carrier.
For additional information regarding Annuities, please reference the annuity prospectus.
Alternative Investments Information
From time to time, Hazlett may offer alternative investments. If you are interested in such products and the costs and fees thereby associated, please contact your Hazlett financial professional.
For more information about such products, please consult the offering memorandum.
Unit Investment Trusts (UITs)
UITs consist of Equity and Fixed-Income UITs. We, along with your financial professionals, are compensated in ways that vary depending on the type and terms of the UIT portfolio selected. The types of fees received by us are described below and are disclosed via the prospectus issued by the UIT provider. Your financial professional can provide you a copy of the most recent prospectus. The UIT provider deducts fees as compensation from the proceeds available for investments for marketing and distribution expenses, which may include compensating us as described in each UIT prospectus.
Training and Education
We work closely with a variety of product and service providers who provide training and education compensation to offset or reimburse us for costs incurred in conducting comprehensive training and educational meetings for our financial professionals. These meetings or events are held to educate financial professionals on product characteristics, business building ideas, successful sales techniques, suitability as well as various other topics. In addition, certain vendors provide free or discounted research or other vendor products and services, which can assist our financial professionals with providing services. Additionally, financial professionals may receive promotional items, meals or entertainment or other de-minimis compensation from product providers.
Training and education compensation are not related to individual transactions or assets held in client accounts; however, these educational meetings may lead to professional relationships that could lead to sales of that particular company’s products.
Compensation for Termination of Services
Other than any contingent deferred sales charge for a fund (as described under the Mutual Funds section above, if applicable), IRA termination fees (when applicable), and account transfer fees, the firm would not receive any additional compensation in connection with the termination of its brokerage services. If you have questions or need additional information, please contact your Hazlett financial professional.
Conflicts of interest may exist when we provide brokerage services to you. A conflict of interest is a situation in which we engage in a transaction or activity where our interest is materially adverse to your interest. The mere presence of a conflict of interest does not imply that harm to your interests will occur, but it is important that we acknowledge the presence of conflicts. Moreover, our regulatory obligations require that we establish, maintain, and enforce written policies and procedures reasonably designed to address conflicts of interest associated with our recommendations to you.
Our conflicts of interest are typically the result of compensation structures and other financial arrangements between us, our financial professionals, our clients and third parties. We offer a broad range of investment services and products and we receive various forms of compensation from our clients, affiliated and non-affiliated providers and money managers, and other third parties as described above. Securities rules allow for us, our financial professionals, and our affiliates to earn compensation when we provide brokerage services to you. However, the compensation that we and our financial professionals receive from you varies based upon the product or service you purchase, which may create a financial incentive to recommend investment products and services that generate greater compensation to us.
We are committed to taking appropriate steps to identify, mitigate and avoid conflicts of interest to ensure we act in your best interest when providing brokerage recommendations to you. Below you will find additional information related to our conflicts of interest. This information is not intended to be an all-inclusive list of our conflicts, but generally describes those conflicts that are material to your brokerage relationship. In addition to this disclosure, conflicts of interest are disclosed to you in your account agreement(s) and disclosure documents, our product guides and other information we make available to you.
Compensation We Receive From Clients
Compensation We Receive from Third Parties
Third-party payments we receive may be based on new sales of investment products, creating an incentive for us to recommend you buy and sell, rather than hold, investments. In other cases, these payments are made on an ongoing basis as a percentage of invested assets, creating an incentive for us to recommend that you buy and hold investments.
The total amount of payments we receive varies from product to product and varies with respect to the third-party investment management products we recommend. It also varies from the compensation we receive in connection with other products and services we may make available to you. We have an incentive to recommend investment products and services that generate greater payments to us. This compensation generally represents an expense embedded in the investment products and services that is borne by investors, even where it is not paid by the Product Sponsor and not directly from the investment product or other fees you pay.
Note: The amount of these payments is not dependent or related to the level of assets you or any other of our clients invest in or with our Product Sponsors.
Compensation Received by Financial Professionals
Financial professionals are compensated in a variety of ways based on revenue generated from the sale of products and services, as well as total assets under advisement. In addition to upfront-transaction based compensation, some products feature on-going residual or “trail” payments. In this regard, financial professionals are incentivized to recommend products that have higher fees as well as those with on- going payments.
Typically, a financial professional’s payout schedule (periodically adjusted by us at our discretion) increases with production and asset levels. As a result, financial professionals have an incentive to provide brokerage recommendations that result in selling more investment products and services. Financial professionals also have an incentive to provide brokerage recommendations, to gather more assets under management, and to increase brokerage trading activity.
Financial professionals have an incentive to recommend you rollover assets from a Qualified Retirement Plan (QRP) to a brokerage Individual Retirement Account (IRA) because of the compensation they will receive. We maintain policies and procedures designed to ensure that such recommendations are in your best interest.
Brokerage accounts, unlike advisory accounts, do not feature an on-going fee based on assets under management. In those instances where your brokerage account has minimal activity and generates few commissions, financial professionals may be incentivized to recommend you transition your brokerage account to an advisory account to generate on-going revenue. Further, financial professionals may be incentivized to recommend that you transition your brokerage account to an advisory account after you have already placed purchases resulting in commissions and/or other transaction-based brokerage fees. Additionally, where an advisory account has a high level of trades, a financial professional may be incentivized to recommend the account convert to a brokerage relationship to generate commissions. We have controls established to identify and mitigate these risks.
A Financial advisory relationship generally provides a higher level of regular and ongoing service than the level of service and relationship monitoring provided in a brokerage relationship; however, an ongoing fee is required to obtain financial advisory services. Financial professionals may have an incentive to provide higher levels of service to those clients who generate the most fees.
Recruitment compensation is provided to financial professionals who join our firm from another financial firm. This compensation, which may vary by financial professional, often includes either an upfront or backend award based upon new client assets brought to our firm and/or revenue generated from such client assets. This creates an incentive for the financial professional to recommend the transfer of assets to Hazlett, including brokerage assets, in order to earn this compensation.
Financial professionals are also compensated in the form of education meetings and recognition trips. Financial professionals conduct such meetings and trips to obtain education about the products offered for sale, to conduct due diligence on the issuer offering the product, and to build relationships with the product issuer. Portions of these programs may be subsidized by external vendors and affiliates, such as mutual fund companies, insurance carriers, or money managers. Consequently, product providers that sponsor and/or participate in education meetings and recognition trips gain opportunities to build relations with financial professionals, which could lead to sales of such product provider’s products. Financial professionals also receive promotional items, meals, entertainment, and other noncash compensation from product providers up to $100 per year.
Other Financial Professional Activities
Financial professionals may be motivated to place trades ahead of clients in order to receive more favorable prices than their clients.
Financial professionals who are transitioning through a succession plan may be motivated to make brokerage recommendations designed to increase the value of their book of business through asset accumulation or brokerage trades that are not in your best interests. Financial professionals who receive clients from a retiring financial professional are incentivized to retain client assets and expand the book of business.
Standard Calculation for all stocks, rights, and warrants:
|Single Round Lot Orders||Multiple Round Lot Orders|
|Money Involved In the Order||Minimum Commission||Money Involved In the Order||Minimum Commission|
2,500- and above
|2.0% + $ 6.40
1.3 + 12.00
0.9 + 22.00
|1.3% + $ 12.00
0.9 + 22.00
0.6 + 82.00
0.4 + 142.00
|Subject to the provision that the minimum commission on single round lot orders is not to exceed $65.00|
First to tenth round lot $6.00 per round lot
Eleventh round lot and over $4.00 per round lot
But in no case shall the minimum commission per round lot exceed the single round lot commission. Also, in no case shall the minimum commission for a round lot plus an odd lot exceed the commission on the next larger round lot.
Odd Lot Orders are subject to the provision that the minimum commission on an odd lot order is not to exceed $65.00
Minimum commission is $50.00 per trade.
Options Trading Under $1.00
Options Trading Over $1.00
The result of the above calculation is multiplied by 1.42
Minimum commission on all trades is $50.00 except closing transactions.
Minimum commission is $50.00 per trade plus $34.95 clearance charge.
|Securities In Your Account||$12.00|
|Return / DK / Stop Payment||$25.00|
Securities/Corporate Issues/ UIT
|US Treasury Auction||$75.00|
|Duplicate Confirms||$1.50||Per transaction|
|Duplicate Statement Copies||$3.00||Per month per addressee|
|Foreign Security Processing Fees||$75.00 and up per item.|
|Costs associated with foreign security processing are dependent on the foreign depository that holds your security|
|Internal Security Movements||$5.00||Per transaction|
|Annual Custodian Fee||$49.00|
|Late Payment Fee||$25.00||Plus margin interest on debit balance|
|Physical Certificate Clearance/Processing||$50.00||Per company|
|Legal Clearance Fee|
|(For ex: stock registered in a decedent’s name, a corporation, POA, minor or other legal entity, etc.)||$200.00||Per company|
|Legal Return||$75.00||Per company|
|Restricted Stock||Fees could vary based upon the transfer agent and other requirements such as Rule 144 or other restrictive legends|
|Mutual Fund Transaction Fees|
|Systematic Purchase/ Withdrawal1||$3.00||Per transaction|
|*Load Fund Purchases||N/C|
|1This fee may be avoided by dealing directly with the fund distributor. Transactions effected directly with the fund distributor will not be reflected on your Hazlett, Burt & Watson statement of account activity|
|Overnight Delivery||$25.00||Or actual carrier charge, whichever is higher|
|Securities in your account||$20.00|
|Re-registration and pricing of Ltd Partnership (Alternative Investments)||Fees vary based upon the registration and costs|
|Research for Account Information||Costs will vary depending on time required $50.00 minimum|
|Restricted||$5.00||Per position per month|
|Security Deposit Reject Fee||$70.00||Per transaction|
|Security Registration & Transfer Fees|
|Incoming Securities through direct registration||$30.00||Per transfer|
|Direct Registration||$30.00||Per transfer|
|Physical Certificate||$500.00||Per transfer|
|Transfer of Account to another Broker/Dealer (ACATS)||$125.00|
|*Transaction Charge||$9.95||Does not apply to Advisory Accounts or CD’s|
|Transfer on Death Account Fees|
|Establishing a TOD Account||$50.00|
|Change or Revocation of the Agreement||$50.00|
|Distribution of the Account||$200.00|
|Wire Transfer of Funds||$25.00|
|*Yearly Account Maintenance Fee||$55.00||Does not apply to IRA or Advisory Accounts|
*These fees do not apply to Advisory Accounts
** Special situations – fees will vary depending on circumstances
|THE ABOVE LIST DOES NOT INCLUDE COMMISSIONS OR ADVISORY FEES. IN ADDITION, COMMISSIONS AND FEES THAT MAY BE CHARGED BY THIRD PARTIES, SUCH AS INVESTMENT SPONSORS, MONEY MANAGERS OR CUSTODIANS, ARE NOT INCLUDED. HAZLETT, BURT & WATSON, INC. RECEIVES COMPENSATION IN THE FORM OF 12B-1 AND ADMINISTRATIVE SERVICING FEES FROM THE MONEY MARKET & MUTUAL FUNDS THAT MAY BE HELD IN YOUR ACCOUNT. HAZLETT, BURT & WATSON, INC. RESERVES THE RIGHT TO CHANGE THESE FEES AT THEIR DISCRETION, AND TO LIQUIDATE ASSETS HELD IN A BROKERAGE ACCOUNT TO PAY ACCOUNT FEES OR OTHER FEES ASSESSED AGAINST THE ACCOUNT.|