Disclosures

Order Routing

JW Cole Financial is required to make available quarterly reports that present a general overview of our routing practices. These reports identify the significant venues to which customer orders were routed for execution during the applicable quarter.

JW Cole Financial transmits the majority of our customer orders to our clearing firm, National Financial Services, LLC (NFS), Member NYSE/SIPC. NFS may then route these orders to various venues for execution.

Click here to view JW Cole's most current routing order information.

Customers of JW Cole may also request in writing a printed copy of this report.

Member FINRA/SIPC

SIPC

JW Cole Financial, Inc. is a member of both the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).

Securities in accounts carried by National Financial Services, LLC (NFS), a Fidelity Investments® company are protected by SIPC up to $500,000 (including cash claims limited to $100,000). NFS has arranged for additional protection for cash and securities to supplement its SIPC coverage. This additional protection carried by NFS covers total account net equity in excess of the $500,000/$100,000 coverage provided by SIPC. Neither SIPC nor the additional coverage protects against loss of market value of the securities.

In accordance with the FINRA Conduct Rule 2342, regarding SIPC information, please know that you may contact SIPC for additional information at (202)371-8300 or visit them on the Web at www.sipc.org.

Product Relationship

JW Cole currently offers mutual funds, variable annuities and various alternative investments from over 200 companies. At times JW Cole will establish relationships with some of these companies in order to provide additional training and marketing resources to our Advisors. Through the establishment of these relationships, these companies may have greater access to meet and communicate with our Advisors. At present, the companies that participate in providing this relationship to our investment representatives are the following:

  • CNL Financial Group
  • Realty Capital Securities, LLC
  • Atlas Energy LP
  • AssetMark
  • Cole Realty Holdings, LLP
  • Hines Securities
  • Franklin Square Capital Partners
  • Jackson National Life
  • Sun America Securian
  • Sammons Retirement Solutions
  • Security Benefit Life
  • Advisors Asset Management, Inc.
  • National Financial Services
  • Midland National Life
  • Absolute Capital
  • Brinker Capital
  • Allianz Life
  • Ash Brokerage
  • American Trust
  • Creative One
  • Curian Capital
  • DMI Marketing
  • DressanderBHC
  • Fig Marketing
  • Financial Professionals Group
  • Flexible Plan Investments, Ltd.
  • AssetMark
  • CPS Insurance Services
  • CCA Funds
  • Griffin Capital
  • Hanlon Investment Management
  • Voya Financial
  • Howard Capital Management
  • Inland Real Estate Group
  • MetLife
  • Sowell Management Services
  • Steadfast Companies
  • T. Rowe Price
  • The Pacific Financial Group
  • U.S. Energy
  • Walton International
  • Weatherstone Capital Management

Product Relationship

In addition to the customary sales charges in connection with sales of their products, these companies may make payments to JW Cole to participate in our education and training programs, cover costs of due diligence, conferences, meetings, and other Advisor events. JW Cole may receive a payment of up to 1.50 percent of an investor's total deposit into the product (the "Gross Sales Payment"). If, for example, an investor makes a deposit of $10,000, JW Cole would receive up to $150.00. In addition, JW Cole may receive a flat amount payment of up to $40,000 per year ("Flat Amount Payment") that is used to cover expenses including, but not limited to, JW Cole's Annual Advisor Symposium.

JW Cole Advisors do not receive a greater or lesser commission or obtain any added financial incentive in connection with sales of any product company that participates in the education program versus any non-participating product company.

Bank Deposit Sweep Program

Overview

The Bank Deposit Sweep Program (BDSP) is a core account investment vehicle used for customer cash balances.

Through the BDSP, cash balances from securities transactions, deposits, dividend and interest payments, and other activities in a brokerage account, are automatically deposited or swept into interest-bearing FDIC insurance-eligible Program Deposit Accounts (PDA) at one or more FDIC-insured financial institutions. Cash remains in the PDA until it is reinvested or withdrawn.

FDIC Insurance

FDIC insurance coverage is $250,000 per depositor, per insured depository institution for each account ownership category.

Individual investors, and trustees acting on behalf of individual investors, are responsible for monitoring the total amount of deposits at each program bank to determine if they exceed the limit of available FDIC insurance.

! Important: Read the Bank Deposit Sweep Program disclosure document carefully for information on:

  • The Securities Investor Protector Corporation (SIPC) coverage.
  • FDIC limits applicable to PDAs, particularly as aggregated with any other deposit account maintained at a bank or other brokerage accounts held at the broker-dealer.
  • The differences between SIPC and FDIC coverage.

Program Banks

For programs that sweep to more than one bank, the Program Bank List specifies the program banks into which funds will be deposited, and the order of the program banks that will receive a customer's funds.

Program banks are organized into regional bank lists and the order in which banks are used for deposit may vary by region. Each customer is provided a bank list based upon the customer's state as reflected in a customer's account mailing address. The customer can identify his or her state by looking at one of the following:

  • The address where the broker-dealer's correspondence is mailed.
  • The address contained on electronic documents for e-mail correspondence.

The Program Bank List may be included in the program disclosure. It may also be obtained from your Home Office, or your firm's Web site, if applicable.

Note: It is the customer's obligation to review the banks into which funds will be deposited as the customer is responsible for monitoring the total amounts he or she has on deposit at each program bank that may be eligible for insurance by the FDIC.

Eligibility and Registrations

Program Eligibility Requirements

To be eligible, each account owner must be a natural person, acting for himself or herself or on behalf of a trust where each beneficiary is a natural person.

The Bank Deposit Sweep Program (BDSP) is available for:

  • Individual accounts.
  • Sole proprietorships (provided they are not incorporated).
  • A trust, provided all beneficiaries are natural persons.
  • Custodial accounts, provided all beneficiaries are natural persons.
  • Joint accounts.

The BDSP is not available for:

  • For-profit entities, such as a corporation.
  • Custodial accounts, where a beneficiary is not a natural person.

 

Eligible Account Registration Types

table1

Ineligible Account Registration Types

The following account registration types are systematically blocked from establishing a bank deposit core sweep:

table2

For additional information, please visit FDIC.