Questions you can ask us about our services: • Given my
financial situation, should I choose an investment advisory
service? Should I choose a brokerage service or both types
of services? Why or why not? • How will you choose
investments to recommend? • What is your relevant
experience, including your licenses, education and other
qualifications and what do they mean?
What fees will I pay?
FEES IN A BROKERAGE ACCOUNT
You will pay a fee for each transaction in a brokerage account
xample, commissions, markups, markdowns or sales
charges). This can be a direct payment from you or, for certain
investment products, the product sponsor or the manager
will pay the fees and costs to us based on the value of your
Brokerage transaction fees vary from product to product.
An overview of brokerage fees and other Account charges
is included in the Best Interest Disclosure Statement and in
the materials listed on page 4 of this CRS. An overview of the
MESD brokerage fees and charges is available at merrilledge.
com/pricing. The trade confirmation you receive will provide
the amount of the fees charged for the transaction. The
offering materials available for certain types of investment
products provide information about the fees and costs of
The more trades that you make in your brokerage account, the
more we and/or your Advisor get paid, giving us a financial
incentive to encourage transactions in your account.
FEES IN AN IA PROGRAM-ENROLLED ACCOUNT
You pay us an IA Program fee that covers investment advisory
services, trade execution and custody at Merrill. The IA
Program fee is based on the value of the assets in your
account at the annualized fee rates listed below:
IAP: A customized rate agreed with your Advisor (max 2.00%)
and a strategy manager fee (if applicable) for Advisor-based
advice and guidance, access to a wide range of investment
solutions and managed strategies and IAP fiduciary services.
SPA: A customized rate agreed with your Advisor (max 1.50%)
and a SPA manager fee for SPA fiduciary services.
MAS: A customized rate agreed with your Advisor (max 1.80%)
and a MAS manager fee for certain agreed MAS services.
MGI with Advisor and MEAA: A fee rate of 0.85% for FSA-
based advice and guidance on the set of managed strategies
available through the program and related fiduciary services.
MGI: A fee rate of 0.45% for access on a self-guided basis to a
limited list of managed strategies.
IIC: A negotiated rate (max 0.45%) for IIC services.
Depending on the IA Program, the fee is paid monthly or
quarterly. The relevant IA Program brochure will provide more
detail about the applicable fee and the transactional costs you
The more assets there are in your IA Program-enrolled
account, the more you will pay in fees, giving us a financial
incentive to encourage you to increase the assets in your
ADDITIONAL FEE INFORMATION
We (or your Advisor or an FSA) may discount or waive certain
transaction fees and charges based on your circumstances,
any discount or waiver requirements and/or any reward and
rebate program rules.
Certain brokerage and IA Program services, as well as
investment products, may only be provided by Advisors and
FSAs who meet certain qualifications and training requirements.
Certain products have built-in fees and expenses described in
their offering materials that the product manager or sponsor
charges for services, portions of which may be paid to us.
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
What are your legal obligations to me when providing
recommendations as my broker-dealer or when acting
as my investment adviser? How else does your firm
make money and what conflicts of interest do you
STANDARD OF CONDUCT AND CONFLICTS OF INTEREST
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 ways we and our affiliates make
money create 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:
Affiliate benefits. Our affiliates receive compensation
and/or economic benefits in connection with certain of the
services provided and certain investment products that we
recommend or make available to you.
Third-party payments for services. We receive compensation
from certain product sponsors for sub-accounting and
shareholder services we provide them. We also have
agreements with certain product sponsors to pay us marketing
support and other revenue sharing payments under certain
circumstances. Product sponsors may share in the costs of
hosting certain educational meetings for clients and our
employees, including Advisors and FSAs.
Principal trading. Some of your securities transactions
will be executed with our affiliate BofAS. It receives dealer
compensation for its services. BofAS also receives underwriting
compensation from issuers for providing underwriting services
for offerings of securities and for the sale of these securities to
institutional and retail clients, including you.