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Securities Brokerage
KMS Financial Services, Inc., is a full-service broker-dealer providing access to publicly traded stocks, bonds, and options, plus a wide range of mutual funds, unit investment trusts, variable life and annuity products, and cash management services.
Your accounts may be maintained directly with an investment sponsor (a mutual fund or insurance company, for example) or in a brokerage account through our securities clearing relationship with Pershing LLC, a subsidiary of Bank of New York Mellon Corporation.
Pershing has been providing comprehensive correspondent brokerage execution, clearance, data processing, and financial products and services since 1939. Pershing currently works with more than 600 financial organizations worldwide. Consistent with SEC requirements for the disclosure or order routing and execution practices, Pershing provides additional information periodically on your brokerage statement and online at
http://www.order-routing-disclosure.com
When you visit the site you must enter KMS’ name exactly as it is shown on the bottom of your statement pages: KMS FINANCIAL SERVICES INC with spaces but no punctuation. Both KMS and Pershing regularly monitor the quality and timeliness of order execution.
Additional Information on Special Risks and Considerations of:
Advisory Services
KMS Representatives enjoy considerable flexibility in structuring the way they work with clients. In some cases, services are offered on a fee basis as an alternative to traditional commission-based compensation.
Investment advisory and financial planning services may include personal consultation and the preparation of a written financial plan as well as ongoing asset allocation and portfolio management. Your Representative may perform these services personally or help you select and monitor “third-party” portfolio managers.
Different programs can accommodate a wide range of account sizes and investment objectives. Your long-term financial goals and level of risk tolerance are key to defining an appropriate approach.
Traditional & Variable Insurance
Traditionally, insurance has focused on the fundamental role of guarding your family or business against financial loss due to death, disability, and other risks. Many KMS Representatives maintain the professional licensing and expertise to assist you with these types of coverage as part of your comprehensive financial plan.
KMS offers a portfolio of traditional “risk” insurance from selected carriers. However, your Representative also may access such products through direct relationships with carriers that are not associated with or selected by KMS.
Variable Annuity and Life contracts combine insurance features with market-based investments. KMS represents a number of major underwriters of variable annuity and life products which are subject to both insurance and securities regulation. Your Representative transacts this business exclusively through KMS.
Account Protection
Accounts held through KMS at Pershing LLC are protected up to the total amount held in the account. Of this total, Securities Investor Protection Corporation (SIPC) provides $500,000 of coverage, including $250,000 for claims for cash. Remaining coverage is provided by Pershing through a commercial insurer.
Account protection applies when a SIPC member firm fails financially and cannot meet its obligations to securities customers. It does not protect against losses from the rise and fall in the market value of investments.
You may obtain information about SIPC, including the SIPC brochure, by contacting SIPC
at www.SIPC.org or at (202) 371-8300.