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First Internet Securities Network does not charge investment advisory fees or annual management fees. Our policy is that FISN earns income only when investments are made. Transaction expenses vary and are disclosed at the time of investment. Often on fixed-income investments there are no direct transaction fees or commissions charged to the investor.
There are Service Fees that arise in addition to transaction fees. These fees are customary in the securities industry. They occur in the normal maintenance of securities accounts and they generally arise from some action or inaction of the account holder. For example, the most common services initiated by the account holder are Wire Transfer and Stop Payment. The most frequent event related to a customer inaction is for Late Payments and Bounced Checks. And then there is the Annual Custody Fee of $18 charged when an account is inactive for a year, to cover required statement mailings and custody of securities.
The policy of FISN is to pass through any service fees that are charged to an account by our back office clearing firm, National Financial Services LLC (NFS). NFS is a Boston based Fidelity Investments company and the nationwide leader in securities administration. NFS carries the accounts of FISN. We believe their fees are competitive and relate to the actual expense involved. FISN reserves the right to establish its own service fees to recover its cost of processing transactions.
FISN will assess fees for the services listed below. For your convenience, we have provided both a definition of each fee and the amount we will be charging in each case.
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Fed Funds Wire - $15 - is charged to send a Fed Funds wire.
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Annual Custody Fee - $18 - is charged when an account has not had a securities trade in the last calendar year and the money market account balance as of 12/31 is less then $10,000.
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IRA Maintenance Fee - $35 - is charged for each year for the annual maintenance and record keeping requirements of NFS retirement accounts. An invoice is sent to each IRA customer each Fall and, if not paid, is then debited from the account balance in December.
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IRA Closure Fee - $75 - NFS fee for liquidation/termination of an NFS retirement account. The fee will be collected from the account balance and may not be paid by separate check.
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Bounced Checks - $15 - are identified as any incoming check that is deposited into an account with insufficient funds and then returned by the bank.
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Stop Payments - $15 - are charged based upon receipt of notification to stop an outgoing check.
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Legal Transfers - $90 - are charged when a transfer requiring legal documentation is completed.
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Legal Returns - $60 - are identified as certificates returned to a customer due to a "not in good order" status being in effect for more than 45 days.
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Physical Reorganizations - $20 - are charged when a certificate is deposited into a customer account after the mandatory reorganization action date has passed.
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Transfer and Ship - $220 - is charged when a customer requests receipt of a physical certificate.
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Mailgrams - $5 - are sent as a result of a trade related obligation or margin deficiency that requires communication to the customer.
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Extensions - $10 - are requests on behalf of customers for more time for payment/delivery of a security transaction.
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TOA Delivery - $30 - is a transfer of your entire account to another brokerage firm.
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PIP Transaction Fee - $5.00 - is a re-occurring transaction fee for each purchase made through a mutual fund Periodic Investment Plan (PIP).
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Mutual Fund Transaction Fee - $50 - is a transaction fee, per transaction, for each mutual fund purchase or sale through FISN.
If you would like clarification or additional information about the above, please contact your representative. As always, we continue to value your business and appreciate your choosing First Internet Securities Network. |
