You should consider your client's financial needs, goals, and risk tolerance before making any investment recommendations. It's relatively straightforward for the salesperson to compare potential compensation between brokerage firms, and allows him or her to see how much the firm is earning from their work. CollegeAmerica and ABLEAmerica are distributed by American Funds Distributors, Inc. and sold through unaffiliated intermediaries. To assist the financial industry in fulfilling its obligation to provide all available breakpoint discounts on sales of front end load mutual funds, the Joint NASD/Industry Task Force recommended that broker-dealers provide investors with a Written Disclosure Statement, explaining the availability of breakpoint discounts, at the time of purchase or on a periodic basis. American Legacy accounts established on or before March 31, 2007, can also be applied to qualify for a discount on Class A, 529-A and ABLE-A purchases. You can help your clients assess their opportunities to receive breakpoint discounts by taking the following steps: FINRA provides an outline for training associated persons involved in the sale of Class A shares of front-end load mutual funds. Capital Group Lowers Fees on 18 Funds - PR Newswire The amount eligible for this "Reinstatement Privilege" may not exceed the amount of your redemption proceeds and is only allowed once per year.See the funds' prospectuses for more information. They can offer built-in diversification and professional management but, like investing in any security, investing in a mutual fund involves certain risks. PDF Mutual Fund Share Classes and Compensation - Morgan Stanley Investors can qualify for breakpoints through a single purchase of Class A mutual fund shares, with a letter of intent (LOI) or through rights of accumulation (ROA). This simply means that the investment firm has sole access, or that we have limited access, to their clients account information. Investors should discuss their specific situation with their financial professional. Purchased with varying initial sales charges, depending on the fund and investment amount, and provide up-front commissions and ongoing trails that begin immediately. The Investor A front-end sales charges can be reduced or eliminated through one or a combination of the following: the Right of Accumulation, a Letter of Intent, the Reinstatement Privilege, quantity discounts or an applicable waiver of the sales charge. We have issued two Investor Alerts that discuss mutual fund breakpoints. Please see the funds prospectuses for more information. Breakpoint discounts are volume discounts to the front-end sales load charged to investors who purchase Class A mutual fund shares. Report a concern about FINRA at 888-700-0028, Securities Industry Essentials Exam (SIE), Financial Industry Networking Directory (FIND), Breakpoint Checklist and Breakpoint Worksheet, Status Report: Implementation of Recommendations of Joint NASD/Industry Breakpoint Task Force, Report of the Joint NASD/Industry Task Force on Breakpoints, Common Definitions Mutual Funds Should Use to Describe Breakpoint Discount Rules, Customer Letters About Breakpoint Refunds, Frequently Asked Questions about Breakpoints, Task Force Recommendations for New Confirmation Content, FINRA Sanctions Barclays Capital, Inc. $13.75 Million for Unsuitable Mutual Fund Transactions and Related Supervisory Failures, FINRA Sanctions 12 Firms a Total of $6.7 Million for Failing to Apply Sales Charge Discounts to Customers' Purchases of UITs, FINRA Fines Wells Fargo $2 Million for Unsuitable Sales of Reverse Convertibles to Elderly Customers and Failure to Provide Breakpoints on UIT Sales, Merrill Lynch to Pay More Than $2.5 Million Related to UIT Sales Charge Discount Failures, FINRA Fines 25 Firms More Than $2.1 Million for Failures in Mutual Fund Breakpoint Review, Other Violations, FINRA Fines Robert W. Baird & Co. $500,000 for Fee-Based Account, Breakpoint Violations, FINRA Fines Oppenheimer $1 Million to Settle Charges that It Produced Flawed, Incomplete and Untimely Data in Breakpoint Self-Assessment, Report of the Joint FINRA/Industry Task Force on Breakpoints. A 0.75% contingent deferred sales charge (CDSC) may be assessed if a redemption occurs within 18 months of purchase. Growth, value, blend, global sector, asset allocation funds, and 529 options - class A. FINRA operates the largest securities dispute resolution forum in the United States, To report on abuse or fraud in the industry. All dates and times are based on Central time. Class A share pricing by type of fund (See reverse side for list of MFS funds) . MONEY MARKET FUNDS Typically less volatile than other types of mutual funds because they invest in high-quality, short-term money market instruments that are issued and payable in U.S. dollars. Contact Fidelity for a prospectus or a summary prospectus, if available, containing this information. Reducing Your Sales Charge. Read the prospectus carefully before investing. Does not include Nationwide Loomis Core Bond Fund and Nationwide Loomis Short Term Bond Fund. Gross dealer concession (GDC) is the revenue paid to a brokerage firm when commissioned securities and insurance salespeople sell a product. 4. DE Asset allocation strategies do not assure profit and do not protect against loss. American Century Investment Services, Inc. 6. Registered investment products (including mutual funds and ETFs) and collective investment trusts managed by Fidelity Management Trust Company (FMTC) are offered by Fidelity Distributors Company LLC (FDC LLC), a registered broker-dealer. Investments made at or above the $1 million breakpoint become eligible for ongoing service fees after the assets are held for at least one year. 5 The Distributor may pay a dealer reallowance or placement fee to the dealer as shown on NAV purchases of Investor A shares. PDF Brokerage Commission and Fee Schedule - Fidelity Investments To determine whether an LOI is appropriate for a particular client, you should discuss your client's investing plans for the coming 13-month period and examine his or her recent purchases. Net Asset Value (NAV) Purchases Subject to Dealer Concessions: Dealers receive concessions on Class A share purchases made within a 12-month period beginning with the first NAV purchase under the following circumstances: Purchase of $250,000 or more of Funds in Table C, $500,000 or more of Funds in Table B or $1,000,000 or more in Table A. Firm compliance professionals can access filings and requests, run reports and submit support tickets. An investment in Summit is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. In such instances, the automatic conversion of Investor C shares to Investor A shares will occur approximately eight years after the Effective Date. INVESCO STEELPATH MLP INCOME FUND CLASS A - Insider Tax-exempt bond funds are not available through the CollegeAmerica 529 plan or ABLEAmerica. Since American Funds Service Company has little or no access to certain nominee or street name account information, we are generally unable to aggregate those accounts. BlackRock Managed Income will be subject to a 0.50% charge if liquidated within 18 months of purchase. Capital appreciation and reinvested dividends/capital gains do not apply toward your combined purchases. NAV purchases at specified breakpoints on BlackRock fixed income funds may be subject to a CDSC if liquidated within 9 months of purchase as follows: Short-Term Municipal: 0.25%. All rights reserved. Tax-exempt bond funds are not available through the CollegeAmerica 529 plan or ABLEAmerica.