How Compensation Is Paid to Stifel and Your Financial Advisor. When clients invest in insurance products, Stifel and our Financial Advisors may receive compensation paid by the insurance company out of its assets, which may include any profits the insurance company makes on insurance contracts. Depending upon the type of insurance product and Stifel’s agreement with the insurance company, our compensation can vary and be in the form of one or a combination of upfront commissions, concessions on an ongoing basis (based on the value of the assets, commonly known as trail commis- sions), when additional investments are made to an insurance contract, at contract renewal, for expense reimbursements, or at the time of annuitization of a contract. The ongoing fees or trails Stifel and your Financial Advisor may receive from an insurance company are based upon the amount of your investment held with the insurance company and are paid in consideration of the ongoing servicing and operational support provided. You should discuss with your Financial Advisor the form of compensation he or she receives. Stifel’s compensation formula does not favor one insurance company’s products over another. All commission revenue is paid out to the Financial Advisor on the same basis, and therefore, we do not believe the compensation arrangements create a conflict of interest. In addition to the payments described above, from time to time insurance companies will reimburse Stifel for expenses we incur in connection with certain training and educational meetings, conferences, or seminars. Also, in the ordinary course of business, our Financial Advisors may receive promotional items, meals or entertainment, or other similar “non-cash” compensation from insurance companies with which we do business.
