New SEC Rules as of June 30, 2020
In June 2019, the Securities and Exchange Commission (SEC) released new rules aimed at enhancing both the quality and transparency of investors’ relationships with broker-dealers and investment advisers. These rules, which are applicable as of June 30, 2020, impact Huntington Financial Advisors (HFA) and the products and services we offer.
Specifically, Form CRS requires SEC-registered investment advisers and broker-dealers to deliver to retail investors a brief client relationship summary that provides information about the firm and the brokerage and/or advisory products and services offered, including information about costs and fees and conflicts of interest.
Regulation Best Interest (“Reg BI”), establishes a new standard of care for broker-dealers when making a recommendation of a securities transaction or investment strategy involving securities to a retail investor.
The following is a list of key documents describing how we comply with these new standards:
- HFA Client Relationship Summary
- Brokerage Services Brochure
- Brokerage Fee and Commission Schedule
- Form ADV, Part 2A Brochure
- Advisory Fee Schedule
- Product Sponsor Support
Huntington Financial Advisors (“HFA”) routes equity securities and equity options orders to its clearing firm, National Financial Services LLC (“NFS”), pursuant to a fully disclosed clearing arrangement. NFS selects the exchanges or broker-dealers for execution on behalf of HFA.
Some of the exchanges or broker-dealers may provide payments to NFS depending upon the characteristics of the order and any subsequent execution. However, other than the clearing arrangement with NFS, HFA does not have any arrangement with the execution venues and HFA does not receive any payment for order flow from NFS or the execution venues. NFS is responsible for disclosing any payment for order flow arrangements separately to HFA customers.
Each quarter, NFS also prepares order routing reporting of HFA customers’ non-directed orders subject to SEC Rule 606, including the type and the identity of the broker-dealers or exchanges receiving these orders. The quarterly reporting is available below.
A copy of the most recent quarterly reporting is also available to you upon request. Upon written request to HFA or NFS, you may also obtain the identity of the broker-dealer or exchange executing your trade and the associated time of execution on any of your equity trades placed within the last six months.
As always, if you have any questions or needs, please contact your Huntington Financial Advisor or the Client Services Team at (800) 322-4600, Monday through Friday, 8:00 a.m. to 5:00 p.m. ET.
Huntington Financial Advisors® is a service mark and trade name under which The Huntington Investment Company offers securities and insurance products and services. The Huntington Investment Company is a registered broker-dealer, member FINRA and SIPC, and registered investment advisor with the U.S. Securities and Exchange Commission (SEC). The Huntington Investment Company is a wholly-owned subsidiary of Huntington Bancshares Incorporated.
Certain insurance products are offered by Huntington Insurance, Inc., a wholly-owned subsidiary of Huntington Bancshares Incorporated, and underwritten by third-party insurance carriers not affiliated with Huntington Insurance, Inc.
The Huntington Investment Company, acting as agent for its customers, introduces customers to National Financial Services, LLC ("NFS"). NFS provides brokerage services; carrying customer cash and margin accounts and clearing all equity and options transactions for such accounts. The Huntington Investment Company operates pursuant to the (k)(2)(ii) exemptive provisions of SEC rule 15c3-3 and does not hold customer funds or securities.