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408(b)(2) Plan Sponsor Fee Disclosure


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Under ERISA §408(b)(2)

The following is Wedbush Securities Inc. (Wedbush) disclosure to Qualified Retirement Plan Sponsors regarding compensation and fees received, and services provided, by Wedbush. This disclosure is not required for Plans that only cover business owners or the business owner (and their spouse) nor Plans that pay less than $1000 in compensation for the life of the account agreement (whether directly or indirectly) to Wedbush and/or its’ Financial Advisor.

Should you have any questions concerning this guide or the information provided to you concerning our services or compensation, please do not hesitate to contact a Wedbush Financial Advisor.

Description of the services that Wedbush will provide to your Plan:

  • Custodian:

    Wedbush Financial Advisors assist Employers in the installation of a Qualified Retirement Program by providing IRS approved Prototype Plan Agreements, Amendments, Summary Plan descriptions, and Basic Plan documents for Defined Contribution Plans. Additionally, participant distribution forms, loan applications and applicable notices are supplied to facilitate withdrawals, as well as, the preparation and reporting of Form 1099-R to recipients and federal and state agencies.

    Wedbush Financial Advisors provide historical performance information, investment-related consulting services, recommendations with respect to investment selections, and make deposits, withdrawals and investment transactions at the direction of the Plan Trustee. The responsibility for directing investment orders in the account shall be assigned to the Plan Administrator, the Participant or Investment Manager or Committee appointed by the Plan Administrator or the Participant in accordance with the Plan provisions. Please reference Retail Custodial Qualified Plan Account Agreement, Sections 1 and 2 for further details at:

    Retail Custodial Agreement »

  • Self-Trustee:

    Wedbush Financial Advisors provide historical performance information, investment-related consulting services, recommendations with respect to investment selections, and make deposits, withdrawals and investment transactions at the diction of the Plan Trustee.  The responsibility for directing investment orders in the account shall be assigned to the Plan Administrator, the Participant or Investment Manager or Committee appointed by the Plan Administrator or the Participant in accordance with the Plan provisions.

Services that Wedbush provides as a Registered Investment Adviser & ERISA Fiduciary:

Through its Wealth Management Services division, Wedbush Registered Investment Advisers provide investment advisory services to both the Plan Sponsor and Participant(s) as a fiduciary and an investment adviser, registered under the Investment Advisers Act of 1940 and as amended. Services consist of historical performance information, investment-related consulting services, recommendations with respect to investment selections, and management services on discretionary and non-discretionary basis to institutional and individual clients; commonly referred to as a WRAP Fee program. A WRAP fee is an all inclusive fee assessed annually to cover investment advice, execution, clearing, and settlement services, custody of assets, and administrative services. WRAP Fees may range from .5% to 3% of the value of assets, annually. Please reference Form ADV Part 2 A, WRAP Fee Disclosure Brochure at

Form ADV Brochure »

Direct Compensation Wedbush will receive from your Plan:

The following fees will be deducted from the Plan account or investments:

  • Custodian:

    An Annual Account fee of $70 for the primary account holder, and $45 for each additional account, will be deducted from the applicable account.  Additionally, there are incidental fees for Wires, Stop-payments, Private Placement Assets, etc.   For further details, please reference Retail Custodial Qualified Plan Account Agreement, Sections 3 and 4, at:

    Retail Custodial Agreement »

    Also, a chart of our Current Service Fee is located at the end of this disclosure. You may also contact your Financial Advisor.

  • Self-Trustee:

    Incidental fees will be deducted upon requests for i.e, Domestic Wire Funds - $20; Stop-payment - $25; Outgoing ACATS Transfers - $95.  Please reference Client Account Information and Agreements, page 4, at:

    Retail Client Agreement »

    Also, a chart of our Current Service Fee is located at the end of this disclosure. You may also contact your Financial Advisor.

Indirect Compensation Wedbush will receive from other parties that are not related to Wedbush Securities Inc.:

If your Qualified Retirement Plan account assets are invested in open end mutual funds,  then as service provider for your Plan, Wedbush may receive annual compensation from certain (not all) fund groups in the form of either or both of the following two types of fees:

  • Networking Fees:

    Certain fund groups (Not All) pay fees to Wedbush Securities (WS) for administrative functions performed by WS, alleviating the fund group of the responsibility for the specific account servicing function taken on by WS. Networking Fees are usually ‘nominal’ fixed dollar annual per client account payments to WS from certain fund groups. *** If expressed as a percentage of invested client fund assets, networking fees can range from 0.01% up to but less than 0.06% annually on the value of invested fund holdings.

  • 12(b)-1 Servicing (‘Trail’) Fees:

    For certain (not all) Mutual Fund Share Classes that your plan may hold, Wedbush Securities (WS) may receive additional fees known as 12(b)-1 Service Fees. Not All Mutual Fund Share Classes are structured to charge 12(b)-1 Service Fees. Some Share Classes that charge 12(b)-1 Service are:

    • 'A' or 'B' Mutual Fund Share Classes:

      Typically, if your plan holds either ‘A’ or ‘B’ Shares, 12b-1 Service Fees paid to WS by the fund group and charged to fund holding by the plan may range from 0.20% to 0.30% annually based on the value of plan assets in that particular fund share class over a predetermined time frame (example: monthly, quarterly, or annually).

    • 'C' Mutual Fund Share Class:

      12(b)-1 Fees for ‘C’ Share holding can range from 0.50% up to 1.00% annually and may be charged over a similar time frame as described immediately above.

There are other share classes that mutual fund groups may offer which may or may not assess a 12b-1 service fee. Your plan may hold a particular share class not covered in the overview provided here. To determine whether or not your plan has mutual fund holdings invested in a share class that assesses 12(b)-1 fees and the amount of those fees if they do, please contact your Investment Adviser.

Compensation that will be paid among Wedbush and related parties:

As mentioned above, Wedbush may receive 12b1 fees from mutual funds ranging from 0.01% to 1.00% annualized (paid either monthly or quarterly) based on the fund's own proprietary calculation of the value of the specific open end mutual fund holding in the account.

Compensation Wedbush will receive if you terminate services:

As mentioned above, Wedbush may receive 12b1 fees from mutual funds ranging from 0.01% to 1.00% annualized (paid either monthly or quarterly) based on the fund's own proprietary calculation of the value of the specific open end mutual fund holding in the account.

  • Custodian:

    Account Termination fee of $95 may apply. Reference Retail Custodial Qualified Plan Account Agreement, Section 4.2, at:

    Retail Custodial Agreement »

  • Self-Trustee:

    No fee for account termination. However, an Outgoing ACATS Transfer fee of $95 may apply.

The cost to your Plan of recordkeeping services:

Wedbush provides no administrative or recordkeeping services other than processing deposits, withdrawals, investment transactions, and monthly statements. Please refer to Current Service Fee chart at the end of this disclosure.

Fees and Expenses relating to your Plan's Investment Options:

Pooled Accounts:
In order to maximize investment diversification and returns over the longer term, the Plan offers participants the opportunity to appropriately manage risk by offering mutual funds and/or other pooled investment vehicles within at least the following five broad asset classes:

  • Money Market
  • Fixed Income
  • Large Company Stock
  • Small Company Stock
  • International Stock

Commissions and fees paid by the Plan for the listed investment options can range from 0% to 10% of the value of the assets that are invested. Specific commissions and fees related to each investment option can be found in the investment prospectus. Please refer to your Financial Advisor. You may also go to www.wedbush.com. Log-in. Under ClientLink, click on Trade, and enter the trade order for an exact quote prior to making your final investment purchase or sale.

Individually Directed Accounts:
In an effort to increase investment flexibility, the Plan offers individually directed account feature, allowing participants to invest in publicly traded securities including stocks, bonds, annuities and mutual funds.

The following is a range of commissions that may be charged to an individually directed account:

Mutual Funds 0% - 10% of the amount invested
Individual Stocks 0% - 10% of the amount invested
Individual Bonds 0% - 5% of the amount invested
Annuities .5% - 10% of the amount invested
Unit Investment Trust (UIT) 0% - 10% of the amount invested
Exchange Traded Funds (ETF) 0% - 10% of the amount invested
Equity Options 0% - 10% of the amount invested

Commissions and fees paid by the Plan for the listed investment options can range from 0% to 10% of the value of the assets that are invested. Specific commissions and fees related to each investment option can be found in the investment prospectus. Please refer to your Financial Advisor. You may also go to www.wedbush.com. Log-in. Under ClientLink, click on Trade, and enter the trade order for an exact quote prior to making your final investment purchase or sale.

Contingent Deferral Sale Charges (CDSC):
Contingent Deferral Sale Charges (Back End Loads) may range up to 6% of the redeemed amount of the mutual fund, annually, however, these charges are not paid to Wedbush.

Your Investment Funds and Expense Ratio:
Please reference your specific investment fund being considered at www.finra.org. Click on Fund Analyzer. The Fund Analyzer offers information and analysis on over 18,000 mutual funds, Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs). This tool estimates the value of the funds and impact of fees and expenses on your investment and allows you to review applicable fees and available discounts for funds.

Current Service Fees:

The listing below is a schedule of the fees currently charged to Retail client accounts for services, as indicated. Fees are subject to change with a sixty (60) days notice. Please check with your Financial Advisor to determine if the fees are still in effect.

Service Fees  
  • Activity Assessment Fee Plus Sales Transaction Charge (Liquidations Only) At Current Established Rate
$5.95
  • Regulatory Extensions for Late Payment or Late Delivery
$10
  • Mutual Fund De-Networking(Per Fund Position) Per Position Fee for Partial Outgoing Transfer, Either ACATS or Non-ACATS
  • Limited Partnership Change of Trustee Fee for IRAs
  • Subscription Processing Fee
  • Non-Traditional asset Initial Registration Fee
$15
  • Domestic Wire Funds
  • Limited Partnership Tenders and Sales
  • IRA/Coverdell ESA Initial Account Fee
  • Coverdell ESA Annual Fee
  • Domestic Business Overnight Delivery Service
  • Cashier’s Checks
$20
  • Stop Payment on Checks (Issued Less Than 7 Business Days)
  • International Wired Funds
  • Inactive Account Research
  • Returned Dividend Checks by Post Office For Reasons Other Than Change of Address
  • Photocopy Fee (12 Pages or Fewer or $2/Page For More Than 12 Pages)
  • Domestic Residential Overnight Delivery Service
  • Regular Transfer (Plus Transfer Agent Certificate Fee)
$25
  • IRA Account Annual Fee (Annual Fee is Not Charged in the Same Year as Initial Fee)
  • Regular Transfer (Plus Transfer Agent Certificate Fee)
$35
  • Subscription Processing Fee
  • Non-Traditional Asset Initial Registration Fee
$50
  • Limited Partnership Change of Trustee for IRAs
  • Legal Transfer Plus Applicable Overnight Delivery Service and Transfer Agent Fees
  • Coverdell ESA Account Termination Fee
  • Non-Traditional Asset Holding Fee (Per Asset)
$50
  • WS Qualified Retirement Plan Account Initial Fee
  • WS Qualified Retirement Plan Annual Fee ($45 Annual Fee for Each Additional Participant Account)
$70
  • Outgoing ACATS Electronic Transfers
  • Outgoing Non-ACATS Manual Transfers (Plus $10 Per Position Being Delivered)
  • IRA Termination Fee
  • WS Qualified Retirement Plan Termination Fee
  • Non-Traditional Asset Investment Review
$95
  • Rush Transfer (Plus Overnight Delivery Service and Transfer Agent Certificate Fees and Other Applicable Transfer Agent Fees)
$100
  • Restricted Stock Transfer (plus overnight Delivery Service and Transfer Agent Certificate Fees)
  • Deposit Reject / Transfer reject Charge
  • Minimum Securities Transaction Charge
  • Coverdell Education Savings Account Termination Fee
  • International Overnight Delivery Service
$50
  • Transfer/Deposit Rejects
$125
  • Legal Transfer
$45

Client-requested special mailings or couriers; account transfer of foreign securities; ADR conversions; Foreign Check Collection; Securities Delivery via DWAC, DTCC and DRS (Ranges from $31.36 to $175).  Margin interest rates (varies by balance and risk).

CreditPlus® Fees  
  • Monthly Maintenance (No Charge to Qualified Accounts)
$7
  • Rush Initial Delivery Checks
  • Rush Initial Delivery VISA® Card
$50
  • Rush Reorder Checks
  • Rush Order VISA® Card
$25
  • Stop Payment
$16
  • Copy Cancelled Check
$4
  • Returned ACH
$20
Reorganization Fees*  
  • $1.00 - $49.00
$0
  • $50.00 - $99.00
$5
  • $100.00 - $249.00
$10
  • $250.00 - $499.00
$15
  • $500.00 and Above
$20

*(Based on a Tiered Level of Dollar or Market Value)