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Page 1 of 7 Evolve Securities, Inc. PROPRIETARY FDIC-ELIGIBLE BANK DEPOSIT SWEEP PROGRAM (BDSPSM) DISCLOSURE DOCUMENT This section highlights certain key features of the Program. Please read the complete Disclosure Document before you decide to participate in the Program. You should consult your Broker/Dealer or Investment Representative for more information.
Program Summary
How the Program Works • The Program is a core account investment vehicle used to hold your cash balance while awaiting reinvestment. The cash balance in your Brokerage Account(s) will be automatically deposited or “swept” into interest-bearing FDIC-Insured Program deposit accounts at the Evolve Bank and Trust. Eligibility • In order to be eligible for the Program, each beneficial owner of your Brokerage Accounts must be a natural person. Entities organized to make a profit, such as corporations, are not eligible for the Program. Available Sweep Options • The FDIC Bank Deposit Sweep Program (BDSPSM) is the default core account investment vehicle for eligible account holders who do not elect an alternative core account investment vehicle on their account application. The default core account investment vehicle for ineligible persons will be the Daily Money Fund (FDAXX). Other core account investment vehicleoptions for all brokerage accounts are listed within this disclosure document.
FDIC and SIPC Protection • Your Program Deposit at the Evolve Bank and Trust will qualify for FDIC Insurance in the manner and to the extent more fully described herein. You need to review and understand how FDIC insurance will apply to your Program Deposits. Your cash balance is only eligible for FDIC insurance once it becomes a “Program Deposit” held by the Evolve Bank and Trust. Your cash balance while held by NFS and/or your Broker/Dealer is not FDIC insured, but is covered by SIPC. This includes amounts in the cash balances placed in your brokerage account that have not yet been received by the Evolve Bank and Trust or which have been swept from the Evolve Bank and Trust back to your brokerage account. SIPC currently protects these funds and securities up to $500,000, including $100,000 for claims for cash. Any securities held in your Brokerage Account including money market mutual funds (as opposed to the Program Deposit held by the Evolve Bank and Trust) are investment products, and as such: (i) are not insured by the FDIC; (ii) carry no bank or government guarantees; and (iii) are subject to investment risk, including loss of principal amount invested.
Program Deposits are not covered by SIPC.
Rate of Return • The interest rate for your Deposit Accounts is as described in the "Introduction” to this Disclosure Document, may be obtained from your Broker/Dealer, Investment Representative or at www.Evolvesec.com. Your interest rate is based upon your Program Deposits in accordance with the attached Interest Rate Tiers, as determined by your Broker/Dealer. Over any given period, the interest rates on the Program Deposits may be lower than the rate of return on other core account investment vehicles which are non-FDIC insured or on bank account deposits offered outside the Program. Your Broker/Dealer or the Evolve Bank and Trust do not have a duty to offer the highest rates available or rates that are comparable to money market mutual funds. By comparison, money market mutual funds generally seek to achieve the highest rate of return consistent with their investment objectives, which can be found in their prospectuses.
The Program should not be viewed as a longterm investment option. If you desire, as part of an investment strategy or otherwise, to maintain a cash position in your account for other than a short period of time and/or are seeking the highest yields currently available in the market for your cash balances, please contact your Investment Representative to discuss investment options that may be available outside of the Program that may be better suited to your goals.
Change to Your Sweep Options • Circumstances may require a change to your core account investment vehicle. Generally, you will receive notification in advance of changes to your core account investment vehicle, as is reasonably practical. Account holders may initiate changes to their core account investment vehicle by contacting their investment representative directly or by contacting Evolve Securities at 1-888-557-0222.
Duty to Monitor • You are responsible for monitoring the total amount of deposits that you have with the Evolve Bank and Trust in order to determine the extent of FDIC insurance coverage available to you. Depending on the amount of deposits that you have at the Evolve Bank and Trust apart from your Program Deposits, you may wish to limit deposits in the Program.
Benefits to Your Broker/Dealer and Others • The Program creates financial benefits for us and the Evolve Bank and Trust (one of our affiliates), and NFS. We will receive a fee from the Evolve Bank and Trust in connection with the Program and a portion of these fees may be paid to your Investment Representative and NFS. The revenue generated by us may be greater than revenues generated by sweep options at other brokerage firms, and may be greater than other core account investment vehicles available to your or possible sweep options that we have used in the past or may consider using in the future.
Contact Information • You may contact Evolve Securities, Inc. (ESI) at 1-888-557-0222; Fax 1-512-732-0402 or by visiting on the web at www.Evolvesec.com.
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