Revenue Sharing

Information on Investors Capital Corporation’s Mutual Fund and Insurance Programs and Related Compensation

Mutual Funds

Through our national network of registered representatives, Investors Capital Corporation (ICC) offers a broad selection of more than 9,000 mutual funds. Investors Capital Corporation receives compensation from all of the mutual fund families that are available to our customers. These payments include commissions (sometimes referred to as "loads"), trailing commissions (including so-called 12b-1 payments), and other fees and expenses disclosed in a fund’s prospectus fee table.

Some of our mutual fund sponsors participate in activities that are designed to help facilitate the distribution of their products, such as marketing activities and educational programs, and by offsetting certain transaction costs for those clients who choose to custody their assets with our clearing firm Pershing LLC. These transaction charges might otherwise be charged to the registered representatives or their clients, depending on the account and/or transaction type. In return for assistance in facilitating the activities described above, Investors Capital Corporation receives additional compensation, called revenue sharing, from the product sponsors (referred to here as the “Partnership Program”). These revenue sharing payments are in addition to commissions, annual service fees (known as 12b-1 fees), and other fees and expenses disclosed in a fund’s prospectus fee table.

None of the revenue sharing payments received by Investors Capital Corporation are paid or directed to any registered representative who sells these funds. Investors Capital Corporation registered representatives do not receive a greater or lesser commission for sales of mutual funds for which Investors Capital Corporation receives revenue sharing payments. Because Investors Capital Corporation’s registered representatives receive no direct increase or change in compensation from selling shares of one fund over another, we do not believe that they are subject to a conflict of interest based on the amount of compensation each representative receives when recommending one fund’s shares. The marketing and educational activities paid for with revenue sharing, however, could lead our registered representatives to focus more on those funds that make revenue sharing payments to Investors Capital Corporation —as opposed to funds that do not make such payments—when recommending mutual fund investments to their clients.

Variable Insurance Programs

Through our national network of registered representatives, Investors Capital Corporation (ICC) offers a broad selection of variable Insurance products and other investment programs. Investors Capital Corporation receives compensation from all of the product families that are available to our customers. The compensation includes up-front commissions, trailing commissions, and other fees and expenses disclosed in a products prospectus fee table or offering documents.
Some of our product sponsors participate in activities that are designed to help facilitate the distribution of their products, such as marketing activities and educational programs, and by offsetting certain transaction costs for those clients who choose to custody their assets with our clearing firm Pershing LLC. These transaction charges might otherwise be charged to the registered representatives or their clients, depending on the account and/or transaction type. In return for assistance in facilitating the activities described above, Investors Capital Corporation receives additional compensation, called revenue sharing, from the product sponsors (referred to here as the “Partnership Program”). These revenue sharing payments are in addition to the up-front commissions, trailing commissions, and other fees and expenses disclosed in a products prospectus fee table or offering documents.

None of the revenue sharing payments received by Investors Capital Corporation are paid or directed to any registered representative who sells these funds. Investors Capital Corporation registered representatives do not receive a greater or lesser commission for sales of products for which Investors Capital Corporation receives revenue sharing payments. Because Investors Capital Corporation’s registered representatives receive no direct increase or change in compensation from selling one product over another, we do not believe that they are subject to a conflict of interest based on the amount of compensation each representative receives when recommending one product. The marketing and educational activities paid for with revenue sharing, however, could lead our registered representatives to focus more on those funds that make revenue sharing payments to Investors Capital Corporation —as opposed to funds that do not make such payments—when recommending mutual fund investments to their clients.

Product Sponsors in ICC’s Partnership Program

Allianz
American Realty Capital
Behringer Harvard
Cole
FS Investments
Grubb & Ellis
ICON
ING
Lincoln Distributors
Provident
Prudential
Reef
RiverSource Distributors, Inc.
Royale
United Development Funding
US Energy
Vanguard*
Walton International Group

*flat fee only

If you have any questions, please feel free to contact us at 800-949-1422.