Like many securities firms, Davenport receives payments from third parties whose products we distribute, including mutual fund companies, cash sweep products and insurance companies. Payments from mutual funds, cash sweep products, and insurance companies may include commissions, trails, sales loads, rule 12b-1 fees, sub-transfer agent fees or other shareholder servicing fees for maintaining customer account information, providing other administrative services, shareholder accounting fees, networking fees, reimbursements for education, marketing support and training-related expenses.
Davenport receives various benefits from our relationship with our clearing and custodial firm, Pershing LLC. Some examples include revenues from uninvested cash balances you authorize us to move into money market funds and FDIC insured bank deposit products and a portion of certain brokerage account services and custodial fees that exceed the amount we are charged for these services. Davenport believes that all payments are in accordance with industry rules and regulations as currently in effect. The amount of revenue sharing is determined by each product. For additional information regarding revenue sharing in brokerage and advisory accounts, please see our Regulation Best Interest Disclosure and Form ADV Brochure, respectively. Please contact your Financial Advisor if you have any questions regarding such relationships, payments, or the extent to which your Financial Advisor benefits from these arrangements. You should also refer to the prospectuses and Statements of Additional Information of the mutual funds, cash sweep products, and insurance products in which you invest for further information.