Investment Advisory Program Services
• Access to ongoing advice and guidance on your investments,
trade execution and other advisory services as described in the
program materials
• Choice of discretion and authority over investment decisions
• Ongoing monitoring of accounts enrolled in the program as
outlined in the program materials
• Asset-based fee based on the program fee rate and the assets in the
program account
Brokerage Account Services
• Access to advice, investment recommendations, trade
execution and other brokerage services based on the
qualifications of your financial advisor
• Requires your trade authorization
• No ongoing monitoring or monitoring services
• Per trade transactional fee on purchase and sell transactions
Secondary Market Equity Transactions
Secondary Market Fixed Income Transactions
Mutual Funds and Money Market Funds
Merrill Lynch Investment Advisory Program
Merrill Lynch Strategic Portfolio Advisor® Service
Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S” or “Merrill”) makes available certain investment products sponsored, managed, distributed or provided
by companies that are afliates of Bank of America Corporation (“BofA Corp.”). MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC and a wholly owned
subsidiary of BofA Corp. Merrill Lynch Life Agency Inc. (“MLLA”) is a licensed insurance agency and a wholly owned subsidiary of BofA Corp. BofA Securities, Inc. (“BofAS”) is a registered
broker-dealer, Member SIPC, and wholly owned subsidiary of BofA Corp.
Banking products are provided by Bank of America, N.A., Member FDIC and a wholly owned subsidiary of BofA Corp.
Investment products oered through MLPF&S, and insurance and annuity products oered through MLLA:
Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value
Are Not Deposits
Are Not Insured by Any
Federal Government Agency
Are Not a Condition to
Any Banking Service or Activity
Page 1 of 13
At Merrill, you can work one-on-one with your dedicated financial advisor to help you build a comprehensive financial
strategy for an asset-based fee in an investment advisory program and/or for a per trade charge in a brokerage
account, depending on how you choose to work with us.
Based on the qualifications of your financial advisor, you have access to a variety of investment solutions and
investment advisory programs. If you work with a representative with the title Financial Advisor, Private Wealth Advisor
or Wealth Management Advisor (each, an Advisor), you can access a comprehensive set of managed investment
strategies and other investment solutions as well as a complete set of brokerage solutions. If you work with a
representative with the title Merrill Financial Solutions Advisor (MFSA), you can access certain managed investment
strategies in the Merrill Lynch Investment Advisory Program and engage in limited brokerage transactions.
As part of your relationship with us, it’s important that you understand what the fees are, including the fees associated
with our investment solutions. We believe the better informed you are, the better decisions you can make about
what’s right for you — whether it’s investing under our investment advisory programs or in a brokerage account.
Additional Investment Solutions
Listed Options | New Issue Offerings |
Market-Linked Investments | Alternative Investments |
Specialized Investment Solutions | Annuities | 529 Plans
Explanation of fees
as of January 5, 2024
Page 2 of 13
See Important Information for additional details on page 13.
IAP Program fee
Merrill Lynch fee
Customized annual fee determined by the assets invested in the
IAP account and the Merrill Lynch fee rate:
• If you work with an Advisor: You and your Advisor agree to the
rate, with a maximum rate that can be charged of 1.75%.
• If you work with an MFSA: The rate is a fixed annual rate based
on assets, with a maximum rate that can be charged of 1.10%.
Style Manager fee
If you invest in a managed investment strategy:
• An annual fee based on the assets invested and the applicable
manager fee rate (ranges from 0.00% to 0.65%).
OR
PAS Manager fee
If you invest in a managed investment strategy designated as a
Premium Access Strategy (PAS):
• An annual fee based on assets invested in the strategy and
the rate you agree to with the PAS manager in a separate
agreement.
To select a Premium Access Strategy, you must meet eligibility requirements and enter into a
separate agreement with the PAS manager. Merrill pays the Style Manager fee and the PAS
Manager fee to the investment manager.
Additional fees, expenses and charges apply as outlined in the IAP brochure. The IAP brochure
is available on ml.com/relationships or mymerrill.com/ADV/materials. You can obtain program
materials from your Advisor or MFSA upon request.
SPA Program fee
Merrill SPA fee
Customized annual fee based on assets invested in the SPA
account and the rate you agree to with your Advisor, up to
a maximum rate that can be charged of 1.50%.
SPA Manager fee
An annual fee based on assets invested in the SPA strategy
and the rate you agree to with the SPA manager in a
separate agreement.
The Merrill SPA fee is subject to breakpoint pricing (i.e., the rate will be lower based on meeting
certain levels of investment in the program) and to certain strategy fee rate caps. You must
enter into a separate agreement with the selected SPA manager. The SPA Manager fee, which is
detailed in this separate agreement, is paid to the SPA manager.
Additional fees, expenses and charges apply as outlined in the SPA brochure. The SPA brochure
is available online at ml.com/relationships, or you can request a copy through your Advisor.
Investment Advisory Services
If you work with an Advisor, you can access the full range of services, strategies and investment solutions and products available in the
Merrill Lynch Investment Advisory Program (IAP). You can also enroll in Merrill Lynch Strategic Portfolio Advisor Service (SPA). If you
work with an MFSA, you can access a defined set of managed solutions offered in IAP.
Merrill Lynch
Investment Advisory
Program (IAP)
Comprehensive duciary investment
advisory program providing advice and
guidance and access to a wide range of
Merrill and third-party managed strategies
and other investment solutions
Merrill Lynch
Strategic Portfolio
Advisor Service (SPA)
Fiduciary investment advisory program
providing advice and access to investment
strategies oered by a third-party
investment manager under a separate
agreement
+
+
Page 3 of 13
See Important Information for additional details on page 13.
You will pay a commission that is calculated based on the principal value of the security being purchased or sold
and the commission schedule below. The commission is in addition to the purchase price you pay or the sale
price you receive for the security. The commission may be discounted and is subject to a minimum charge. You
will be charged a minimum commission of $75 or $.04 per share (whichever is greater), subject to a commission
cap of 5.00% of the principal value of your transaction. A portion of the commission is paid to your Advisor.
Principal value (PV) of trade
Maximum
commission
Top of tier
cumulative PV
Top of tier
blended rate
First $1,500 5.00% $1,500 5.00%
+ Next $3,500 2.25% $5,000 3.08%
+ Next $15,000 1.75% $20,000 2.08%
+ Next $30,000 1.50% $50,000 1.73%
+ Next $50,000 1.00% $100,000 1.37%
+ Next $400,000 0.75% $500,000 0.87%
+ PV > $500,000 0.50% — —
For example, if you purchase $10,000 of stock ABC, the standard commission is calculated as follows:
($1,500 x 5.00%) + ($3,500 x 2.25%) + ($5,000 x 1.75%) = $241.25.
The maximum commission that can be charged ranges from 0.50% – 5.00%, depending on the principal
amount of the transaction. There are indirect fees, such as annual management and other similar fees, that
are charged by the manager or sponsor of an exchange-traded fund and of a closed-end fund, as disclosed
in the product’s prospectus.
You pay a commission calculated based on the principal value of the transaction and the number of contracts
purchased or sold. The commission is in addition to the purchase price you pay or the sale price you receive
for the contract. The commission may be discounted and is subject to a minimum charge. A portion of the
commission is paid to your Advisor.
Commissions range from 0.70% – 15.00% of the principal value of the contracts, plus $3.00 – $9.00 per
contract. You also pay an additional transaction fee ranging from $0.15 to up to $1,003 per transaction,
determined based on the principal value and number of contracts purchased or sold.
Principal range x % of principal + fixed dollar Number of contracts x dollars per contract + fixed dollar
Principal
range
% of
principal
Fixed
dollar
Number of
contracts
Dollars per
contract
Fixed
dollar
$500 or
under*
15.0 0% $65 1 – 10 $9 $0
$500.01 –
$1,500
1.50% $25 11 – 20 $8 $10
$1,500.01 –
$5,000
1.30% $28 21 – 50 $7 $30
$5,000.01 –
$10,000
1.00% $43 51 – 100 $6 $80
$10,000.01 –
$20,000
0.90% $53 101 – 200 $5 $180
$20,000.01 –
$50,000
0.80% $73 201 – 500 $4 $380
$50,000.01 + 0.70% $123 501 + $3 $880
For example, if you purchase 10 option contracts (representing 100 shares per contract) with an options premium of
$1.75 per share, the standard commission is calculated as follows: ($1,750 x 1.30%) + $28 + (10 x $9) + $0 = $140.75.
* You pay a commission equal to the lesser of 15.00% of the principal value of the transaction or $65.
Brokerage Solutions
By working with an Advisor, you can access a wide range of investment products for your brokerage account. Advisors are compensated
from the revenue generated from transactions in your brokerage account. Please see the Merrill Best Interest Disclosure Statement.
If you work with an MFSA, under our current policies, you will be limited in the types of investment products you can purchase in
your brokerage account. Please note that we reserve the right to change our MFSA eligibility polices at any time without notice to
you. MFSAs do not receive a portion of the brokerage revenues generated from transactions in your brokerage account as they are
compensated differently than an Advisor.
Equity Transactions
(Secondary Market)
Includes common stock, exchange-
traded funds, closed-end funds, certain
listed preferred stocks and American
DepositaryReceipts
Listed Options
Options contracts cleared by the Options
Clearing Corporation that are traded on
options exchanges
+
Page 4 of 13
See Important Information for additional details on page 13.
For purchases, you pay a “markup” which is included in the price of the security. The total markup that you will
pay consists of the Merrill markup described below and a dealer markup that our affiliate BofA Securities, Inc.
(BofAS) receives if it executes the transaction. The dealer markup paid to BofAS is typically up to 1.00%.
The Merrill markup that is charged may be discounted from the maximum Merrill markup percentage listed
below. A portion of the Merrill markup is paid to your Advisor.
Maximum Merrill markup for purchases
1-year
maturity
5-year
maturity
10-year
maturity
Greater than
10-year
maturity
Treasury securities 0.20% 0.685% 1.28% 1.50%
Government agencies 0.20% 0.685% 1.28% 1.78%
Brokered CDs 0.375% 1.25% 2.00% 2.00%
Corporate bonds 0.375% 1.25% 2.00% 2.00%
Municipal securities* 0.10% 1.25% 2.00% 2.00%
OTC preferred
securities
1.00% 1.00% 1.00% 1.00%
For example, if you purchase a corporate bond with a 5-year maturity for a principal amount of $50,000, the
maximum Merrill markup is calculated as follows: $50,000 x 1.25% = $625.00.
For sales, an amount called a “markdown” is deducted from the security price that you receive. The total
markdown that you will pay consists of the Merrill markdown described below and a dealer markdown that
BofAS receives if it executes the transaction. The dealer markdown paid to BofAS is typically up to 1.00%.
The Merrill markdown that is charged may be discounted from the maximum Merrill markdown percentage
listed below. A portion of the Merrill markdown is paid to your Advisor.
Maximum Merrill markdown for sales
All maturities
Treasury securities 0.00% – 0.25%
Government agencies 0.00% – 0.25%
Brokered CDs 0.00%
Corporate bonds 0.00% – 0.50%
Municipal securities* 0.00% – 0.375%
OTC preferred securities 0.00% – 1.00%
For example, if you sell a corporate bond with a 5-year maturity for a principal amount of $50,000, the
maximum Merrill markdown is calculated as follows: $50,000 x 0.50% = $250.00.
* For additional information regarding our affiliate’s process in seeking bid prices for municipal securities when facilitating sales of
municipal securities, see the Best Interest Disclosure Statement.
Brokerage Solutions
Fixed Income
Transactions
(Secondary Market)
Treasury securities, government
agencies, brokered certicates of deposit
(brokered CDs), corporate bonds, municipal
securities and over-the-counter (OTC)
preferred securities
Page 5 of 13
See Important Information for additional details on page 13.
The fees you pay or incur vary based on the share class and the fund’s own designated pricing schedule.
You can find these fees and the fund’s operating expenses in the fund’s prospectus. A portion of the fees
received are paid to your Advisor as discussed below.
Security &
share class
Fees
Mutual fund Class
A shares
• You pay an upfront “front-end” sales charge that varies depending on
the size of your purchase, the fund’s breakpoint schedule and/or your
eligibility for any other discounts or waivers.
• At Merrill, you can typically only purchase an amount of Class A shares
that results in you paying a front-end sales charge of 3.50% or less
(note that mutual fund prospectuses typically permit Class A share
purchases in amounts that result in front-end sales charges that range
from 0.00% to 5.75%).
• Mutual funds have an annual asset-based distribution and/or service fee
(known as a “12b-1” fee) paid out of the fund’s assets. For Class A shares,
the 12b-1 fee paid to us for most of the funds offered at Merrill typically
ranges between 0.20% – 0.30% per annum.
• Generally, if you redeem Class A shares for which no front-end sales
charge was imposed within 12 – 18 months of the purchase date, you
may pay a Contingent Deferred Sales Charge (CDSC) ranging from
0.25% – 1.00%, which is deducted from the redemption proceeds.
Mutual fund Class
C shares
• There is no front-end sales charge for Class C shares, but you pay a larger
annual 12b-1 fee upon the initial purchase and annually thereafter. The
Class C share 12b-1 fee ranges from 0.50% – 1.00% per annum.
• Generally, if you redeem Class C shares within 12 months of the purchase
date, you may pay a CDSC of 1.00%, which is deducted from the
redemption proceeds.
Mutual fund
share classes
for retirement
accounts and
ERISA plan
accounts
• For personal retirement accounts (IRA, Roth IRA, inherited IRA) and for
SEP, SIMPLE and BASIC Accounts, you purchase Class A shares or Class C
shares and pay the fees indicated above.
• For ERISA plan accounts, you will not pay an upfront fee but you pay an
annual asset-based retirement group fee, based on the share class for
which that ERISA plan account is eligible. These retirement group fees are
typically 0.25% for Class A shares, 0.50% for Class R shares and 1.00%
for Class C shares. You also pay a separate administrative service fee
ranging from 0.10% – 0.35%, which, for certain funds, is deducted from
fund assets.
Money market
funds
• For money market funds available for purchase, you will not pay an
upfront fee; however, money market funds have an annual asset-based
administrative service fee that ranges from 0.00% – 0.50%, all or a
portion of which is paid to Merrill.
• Money market funds available to certain accounts as an automatic cash
sweep typically include a 0.40% annual asset-based administrative
service fee.
• Money market funds available for purchase in a Merrill brokerage account
typically do not charge an annual asset-based administrative service fee.
There are fees and expenses, such as annual management and other similar fees, charged by the fund
manager or product sponsor that are typically part of the overall expenses of the fund, as disclosed in the
fund’s prospectus.
Brokerage Solutions
Mutual Funds and
Money Market Funds
Funds that consist of a portfolio of
securities that seek to meet an
identied objective and are managed
by a fund manager
Page 6 of 13
See Important Information for additional details on page 13.
You will not pay a fee to purchase new issue securities, other than as described below. Instead, the issuer
or the investment manager for the issuer pays us or our affiliate, BofAS, compensation in the form of
a sales charge, gross fee or underwriting discount for acting as the underwriter or selling agent for the
offering. The offering price and the terms of the securities reflect this compensation. The compensation
varies among offerings and is disclosed in the prospectus or offering document for the security. A portion
of the compensation that BofAS receives is paid to Merrill in connection with the new issue offering.
The chart below provides a general guide or range of the fees we or BofAS receives for new issue offerings. In
each case, a portion of the amount that Merrill receives from BofAS is paid to your Advisor as compensation.
Offering type New issue compensation
Equity
common
stock
• For Initial Public Offerings (IPOs), BofAS as the underwriter receives from the
issuer an upfront gross fee of up to 7.00%. The upfront fees vary significantly
depending on the IPO.
• For Add-On Offerings and Convertible Note Offerings, BofAS as the
underwriter receives from the issuer an upfront gross fee of up to 5.00%.
Treasury
securities
• For non-competitive bids submitted for certain new issue Treasuries at the
auction, a $50 per auction service fee will generally be charged.
Agencies
• BofAS as the underwriter receives from the issuer an upfront gross fee ranging
from 0.05% – 3.00%, depending on tenor.
Corporate
bonds
• BofAS as the underwriter receives from the issuer an upfront gross fee ranging
from 0.125% – 3.00%, depending on tenor.
Municipal
securities
• BofAS as the underwriter receives from the issuer an upfront gross fee that
varies significantly depending on type of offering and tenor.
Preferred
securities
• BofAS as the underwriter receives from the issuer an upfront gross fee of up
to 3.15%.
Brokered CDs
• BofAS as the placement agent receives an upfront placement fee ranging from
0.02% to 0.30% of the principal amount of the brokered CD on an annualized
basis, depending on tenor, which is included in the offering price of the
brokered CD (which is the price you pay).
Closed-end
funds (CEFs)
• BofAS as the underwriter receives from the fund manager an upfront gross fee
up to 4.50%, depending on the CEF strategy. In addition, the fund manager
may pay us a structuring fee that ranges from 0.50% – 2.00%.
Unit
investment
trusts (UITs)
• There is a sales charge included in the UIT offering price (which is the price you
pay) that varies based on the type of UIT and its tenor.
• For equity UITs with a 15-month term, you pay a sales charge of 1.85% to the
UIT issuer, of which Merrill receives 1.25%. For equity UITs with a 24-month
term, you pay a sales charge of 2.75% to the UIT issuer, of which Merrill
receives 2.00%.
• For fixed income UITs, you pay a sales charge between 2.50% – 3.50%,
depending on the tenor, of which Merrill receives between 1.60% – 2.60%.
For CEFs and UITs, there are indirect fees and expenses, such as annual management and other similar fees,
charged by the product sponsor or manager that are typically part of the overall expenses of the CEF or UIT,
as disclosed in the product’s prospectus.
Brokerage Solutions
New Issue Offerings
Equity common stock, Treasury securities,
agencies, corporate bonds, municipal
securities, preferred securities, brokered
CDs, closed-end funds and unit
investment trusts
Page 7 of 13
See Important Information for additional details on page 13.
Market-Linked
Investments
Fixed income securities that are linked to
the performance of a market measure, like
an index
Market-Linked Investments (MLIs) are offered to eligible and accredited clients in a new issue offering by
means of a prospectus or can be purchased in a secondary market transaction from Merrill.
Offering type Compensation paid to Merrill and its affiliates
New issue offering • You will not pay a fee on the new issue securities purchase of an
MLI. The price and the terms of the security reflect a gross fee and
other costs that are charged.
• BofAS as underwriter receives from the issuer an upfront gross fee
ranging from 1.50% – 2.50% depending on tenor. The actual gross
fee is disclosed in the prospectus or offering document for the
security. Merrill receives a portion of this fee, and pays a portion of
it to your Advisor as compensation.
• The economic terms of an MLI also include a related structuring
fee, typically in the range of 0.50% – 0.75%, which is retained
by BofAS.
Secondary transactions • For purchases, you pay a markup, which is included in the price
of the security. The total markup that you will pay consists of a
dealer markup that BofAS receives for executing the transaction
and a Merrill markup. The BofAS dealer markup is typically up to
1.00%. The range of the markup that Merrill charges is between
0.50% – 2.00%, depending on the maturity of the MLI. A portion
of the Merrill markup, which may be discounted by your Advisor, is
paid to your Advisor as compensation.
• For sales, Merrill does not charge any markdown and your Advisor
does not receive any compensation. The price you receive will
include a dealer markdown paid to BofAS for executing the
transaction, typically up to 1.00%.
Brokerage Solutions
Page 8 of 13
See Important Information for additional details on page 13.
Alternative Investments (AI) are offered to qualified clients by means of a private placement memorandum or
offering materials, including subscription agreements (Offering Materials). The specific AI fund fees vary based
on the particular type of fund, the specific fund and the share tranche or class. Fee information, as well as the
exact percentages and methods of calculation, are disclosed in detail in the Offering Materials. A portion of
the fees paid are paid to your Advisor as compensation.
AI type Fees
Hedge and private
equity feeder funds that
invest in an underlying
fund return that is only
available to clients of
Merrill or its affiliates
• You pay Merrill, as placement agent, a one-time upfront
placement fee of up to 2.00% of the investment amount, which
you may negotiate with your Advisor. This fee is in addition to,
and not deducted from, your subscription amount or capital
commitment amount.
• Your investment in the feeder fund is subject to certain fees,
such as an annual administration fee of up to 1.00%, of which
Merrill receives up to 0.85% in selling agent compensation.
For hedge feeder funds, the administration fee is based on the
feeder fund’s net asset value. For private equity feeder funds, the
fee base is disclosed in each feeder fund’s Offering Materials.
Administration fees vary and may be lower based on meeting
particular breakpoints.
• Your investment in the feeder fund is subject to other fees that
are charged by the underlying fund’s manager or its affiliates,
such as annual management or performance fees. A portion of the
management fees may be paid to Merrill. These fees are disclosed
in each feeder fund’s Offering Materials.
Direct investments in
hedge funds, private
equity funds, non-
traded real estate
investment funds (NTRs)
or non-traded business
development companies
(NTBDCs)
• You pay Merrill, as placement agent, a one-time upfront
placement fee of up to 2.00% of the investment amount, which
you may negotiate with your Advisor. This fee is in addition to,
and not deducted from, your subscription amount or capital
commitment amount.
• Your investment in the fund is subject to certain fees. Hedge
funds, private equity funds and NTRs have annual management,
administrative, servicing and other asset, commitment or
NAV-based fees that are paid to the fund’s manager or its
affiliates. Merrill may receive a portion of certain of these fees,
which is disclosed in each fund’s Offering Materials.
Alternative Investments
Hedge funds, private equity funds,
non-traded real estate investment funds
and non-traded business development
companies
Brokerage Solutions
Page 9 of 13
See Important Information for additional details on page 13.
Certain of the specialized solutions listed below are only available to you if you meet applicable eligibility and
suitability requirements.
Solution type Fees
Over-the-counter
derivative transactions
• The fee you pay varies and is outlined in the term sheet and trade
confirmation. The fee is included in the price of the derivative
transaction, which may be negotiated, subject to a minimum charge.
A portion of the fee you pay is paid to your Advisor as compensation.
Options overlay programs
• You pay to the options overlay manager an annual management fee
of 0.50% – 0.60% per annum and an annual performance fee that
ranges from 0.00% – 10.00% of net profits. These fees are set
forth in your investment management contract with the manager.
These fees vary based on the manager and the type of strategy.
• Merrill receives a portion of the annual management fee, ranging
from 0.15% – 0.225%, as a referral payment, as detailed in the
disclosure statement included in your investment management
contract. A portion of this referral fee is paid to your Advisor
as compensation.
• You will also pay to Merrill a transaction fee of $1.00 per listed
options contract purchased or sold as directed by the manager
to implement the strategy. The transaction fee is not payable to
your Advisor.
Exchange funds
• You pay an upfront selling commission (included in your subscription
amount) to Merrill ranging from 0.00% – 1.50%, depending on
your subscription amount. The upfront selling commission may be
negotiated with your Advisor. A portion of this selling commission is
paid to your Advisor as compensation.
• You also pay an annual management fee to the exchange fund
ranging from 0.85% – 0.98%, of which Merrill receives 0.25% of
your investment in the fund annually as a servicing fee. A portion of
the fee that Merrill receives is paid to your Advisor as compensation.
• Merrill receives an incentive payment from the placement agent of
1.00% of your subscription amount, of which a portion is paid to
your Advisor as compensation.
• Unless waived or reduced by the exchange fund in its sole discretion,
if you redeem fund units within three years of subscription, you pay
an early redemption fee of 1.00% of their net asset value.
Continued on next page.
Specialized Investment
Solutions
Certain over-the-counter derivatives,
option overlay programs, exchange funds
and foreign currency solutions
Brokerage Solutions
Page 10 of 13
See Important Information for additional details on page 13.
Certain of the specialized solutions listed below are only available to you if you meet applicable eligibility and
suitability requirements.
Solution type Fees
Foreign currency
conversions and wire
transfers
• You pay a fee to Merrill, which will be included in the price of your
transaction. A portion of the fees paid to Merrill may be negotiated
or waived depending on the type and amount of the foreign
exchange transaction. Other than for incoming wires, a portion of
the fee you pay to Merrill is paid to your Advisor as compensation.
• For foreign exchange conversions, you will pay up to 2.00% of the
amount that is subject to the conversion.
• For wire transfers of foreign currency, you will pay up to 1.50% of the
amount wired for outgoing wires and you will pay up to 1.25% of the
amount wired for incoming wires. Your Advisor does not receive any
compensation for incoming wires.
• The exchange rate for your transaction, which is disclosed to you, also
may include compensation to Merrill’s affiliate in the form of a spread
if the transaction is executed at a foreign currency conversion rate
quoted by our affiliate.
Collateralized foreign
exchange transactions
(CFX) and dual currency
products (DCP)
• For CFX, you pay a fee to Merrill, which will be included in the price
of the CFX transaction, of up to 0.60% of the amount subject to
conversion. This fee may be discounted by your Advisor. A portion of
this fee is paid to your Advisor as compensation.
• For DCPs, you pay a fee to Merrill, which will be included in the price
of the DCP, of up to 3.00% of the principal amount per annum. This
fee may be discounted by your Advisor up to a minimum charge.
• The price of your CFX transaction or purchase of a DCP also may
include other compensation to Merrill and its affiliates, which will be
outlined in the term sheet and trade confirmation. A portion of this
fee is paid to your Advisor as compensation.
Specialized Investment
Solutions (Continued)
Certain over-the-counter derivatives,
option overlay programs, exchange funds
and foreign currency solutions
Brokerage Solutions
Page 11 of 13
See Important Information for additional details on page 13.
When you purchase an annuity through your Advisor, you pay fees directly to the issuing insurance company,
the amount of which depends on the annuity type and features you select. For fixed indexed, fixed rate and
income annuities, the fees are included through the crediting rates established by the insurance company.
For variable annuities, the fees you pay are included in the annuity contract and prospectus.
Our affiliate Merrill Lynch Life Agency Inc. (MLLA) is paid by the insurance company, and the amount it
receives varies depending on the type of annuity. A portion of the amount received is paid to your Advisor as
compensation. These payments include first-year sales commissions and may include other commissions paid
annually in subsequent years.
The commissions are not an upfront sales charge and do not reduce your initial investment.
Annuity type Commission to MLLA
Fixed indexed and
variable indexed*
• MLLA is paid a first-year sales commission of up to 3.50% of each
annuity premium and a trailing commission each year thereafter of
up to 0.30% of the value of your annuity.
• Certain fixed indexed annuities do not have an annual trailing
commission.
• Fixed indexed annuities offer optional benefits which have annual
fees of up to 1.25% (as disclosed in the annuity contract).
Fixed rate*
• MLLA is paid a first-year sales commission of up to 2.50% of each
annuity premium.
Income*
• MLLA is paid a first-year sales commission of up to 4.00% of each
annuity premium.
Variable*
• MLLA is paid a first-year sales commission of up to 3.40% of each
annuity premium and a trailing commission each year thereafter of
up to 0.55% of the value of your annuity.
• Variable annuities have distinct fees paid by you to the insurance
company and other service providers, including an annual asset-
based fee of up to 1.05%. Variable annuities offer optional
benefits which have annual fees of up to 1.75% (as disclosed in
the annuity contract).
* For additional premiums added to contracts that were purchased at Merrill prior to June 1, 2020, rst-year commissions, trailing
commissions and other charges are based on applicable rates in eect at the time the contract was purchased. For these contracts, the
rst-year sales commissions received from insurance companies ranged from 0.75% – 5.25%, and the annual trailing commissions range
from 0.00% – 1.20%, in each case, depending on the type of annuity.
For additional premiums added to contracts originally purchased with a rm other than Merrill, the rst-year and trailing commission
rates that we receive may have been established when your contract was purchased based on the selling agreement in place with that
other rm and may fall outside the ranges listed above.
Annuities
Fixed indexed annuities, variable indexed
annuities, xed rate annuities, income
annuities and variable annuities
Brokerage Solutions
Page 12 of 13
See Important Information for additional details on page 13.
The fees you pay or incur vary based on the 529 plan, investment portfolio and unit class you invest in as
outlined below. Both Advisors and MFSAs may offer 529 Plans to their clients. A portion of these fees are
paid to your Advisor.*
Type of 529 plan Fees
Merrill Omnibus
529 Plans
• At Merrill, you purchase a 529 class unit based on your overall assets in a
particular Section 529 plan or certain relationship eligibility criteria we specify.
For 529 investments of $250,000 or more or if you meet certain relationship
eligibility criteria, you will be automatically invested in Class A units. For 529
investments of less than $250,000, you will be automatically invested in Class
C units. Class C units convert to Class A units four years from purchase.
• For Class A units offered by most Omnibus 529 Plans, you will not pay an
upfront sales charge.** If you work with an Advisor, your Advisor is paid, both
at time of purchase and as an annual trailing commission, from 0.125% to
0.25% of the average account assets invested in Class A units.
• For Class C units, you will not pay an upfront sales charge, but your Advisor
will receive an annual trailing commission of 0.125% to 1.00% of the average
account assets invested in Class C units until the units convert to Class A units,
at which time it will decrease to a commission of between 0.125% to 0.25%.
• Generally, if within 12 months of the purchase date you redeem any Class A
units or Class C units, you will pay a Contingent Deferred Sales Charge (CDSC)
in an amount up to 0.25% on Class A units and up to 1.00% on Class C units,
which is deducted from the redemption proceeds.
State 529 plans
offered by
Merrill
• The pricing model available in State 529 plans vary by plan. Based on your
investment time horizon and age of your beneficiary, you will purchase a Class A
unit or a Class C unit.
• For Class A units, you pay an upfront sales charge of up to 5.25%, a portion of
which is paid to your Advisor. Your Advisor will also receive an annual trailing
commission of up to 0.25% of the average account assets invested in Class A
units. The actual amount of the Class A unit sales charge is based on the State
529 plan you select, the size of your investment in the plan, the plan’s particular
sales charge breakpoint schedule (which lowers the charge based on larger
purchases or holdings) and your eligibility for any other discounts or waivers.
• For Class C units, you will not pay an upfront sales charge. For Class C units,
your Advisor is paid an annual trailing commission of up to 1.00% of the
average account assets invested in Class C units. This trailing commission
decreases to a maximum of 0.25% upon conversion to Class A units. In many
State 529 plans, Class C units convert to Class A units after a predetermined
number of years set by the plan.
• If you redeem Class C units within 18 months of the purchase date, you will
typically pay a CDSC fee of up to 1.00%.
There are other fees and expenses, such as account maintenance, enrollment or transaction fees and other similar
fees, charged by the Section 529 plans that are typically part of the overall expenses of the 529 plan, disclosed in
the 529 plan’s program document and Merrill 529 Account Unit Class Disclosure and Terms and Conditions.
* MFSAs may oer 529 plans to their clients but do not receive a portion of the fees associated with a 529 Plan as they are compensated
dierently than Advisors.
** Certain Omnibus 529 Plans may oer only Class A units and charge an upfront sales charge. Merrill may limit availability of such plans to
residents or taxpayers of the plan’s home state. In addition, an Advisor may be paid a portion of any upfront sales charges paid.
529 Plans
Merrill oers plans designed for residents
of any state (Omnibus 529 plans) and
plans that are only available to residents
or taxpayers of the sponsoring state (State
529 plans)
Brokerage Solutions
Page 13 of 13
In the document, references to “Merrill” mean Merrill Lynch, Pierce, Fenner & Smith Incorporated and its afliates. References to ERISA plan accounts means accounts (other than SEP,
SIMPLE and BASIC Accounts) are subject to the Employee Retirement Income Security Act of 1974, as amended.
The information contained in this document is provided for informational purposes only and is not meant to replace your close review of the terms and conditions contained in the
agreements for the Merrill programs and accounts, the brochures and disclosures relating to the investment advisory programs and investment products, including individual securities.
The fee information covered here does not cover all available investment types or solutions or certain fees that apply to securities activities in your account. Additional fees
apply when executing transactions in international markets. These fees include local country costs and fees, local broker fees, stamp taxes, markups, markdowns and dealer spread charges in
connection with foreign currency exchange conversions. Certain of these fees are included in the execution price for the security as a net price and are not reected as separate charges on
your trade conrmations or account statements. The Merrill Schedule of Miscellaneous Account and Service Fees also has information on other fees and charges relating to your account or
account activities.
An MFSA is limited in what he or she can oer you and they are compensated dierently than an Advisor. We may expand the list of securities and investment solutions available in an MFSA-
serviced Account, without notice to you. If you work with an MFSA, please discuss these limitations with him or her and how it may aect your investment approach.
Merrill oers a broad range of brokerage, investment advisory (including nancial planning) and other services. There are important dierences between brokerage and investment advisory
services, including the type of advice and assistance provided, the fees charged, and the rights and obligations of the parties. It is important to understand the dierences, particularly when
determining which service or services to select. For more information about these services, the applicable fees and their dierences, speak with your Advisor or MFSA, as the case may be, or
reference the Client Relationship Summary (Form CRS) and the Summary of Programs and Services at ml.com/relationships. Our CRS provides more information about our obligations to you.
For information about our brokerage services and fees, see our Best Interest Disclosure Statement. Before enrolling in IAP or SPA, you should review the applicable program ADV Brochure.
These disclosures, available at ml.com/relationships, provide more information about the capabilities, qualications and compensation of our nancial advisors, as well as conicts of interest
and other matters.
The way we make money from the purchase and sales of investment products, among other things, creates a conict of interest associated with any recommendation of your nancial
advisor. Merrill and our nancial advisors, as well as our afliates, benet from transactions in your account. Financial advisors earn compensation and benets based on the revenue that
Merrill earns from client transactions and/or the fees paid in our investment advisory programs like IAP and SPA. A nancial advisor will have a nancial interest in charging more for
transactions where they have the discretion to do so or recommending transactions that generate higher amounts of revenue for Merrill and compensation or benet for them, rather
than those transactions that generate lower amounts of revenue. In addition, the more trades that you make in your Account, the more we and/or our nancial advisors get paid or
beneted, creating a nancial incentive to recommend transactions in your Account. There is a conict of interest when your nancial advisor recommends an account or program type, a
security transaction or investment strategy where it is expected that Merrill will earn greater revenue over another account or program type, security transaction or investment strategy.
More information is available in the Best Interest Disclosure Statement and in the ADV brochures for the IAP and SPA programs.
Additional information regarding transaction and other fees
Fees, charges, commissions, other transaction charges, fund sales charges, and the fees and charges for new issue transactions are determined by reference to various schedules and
methodologies and pricing arrangements and agreements in eect from time to time and which are subject to change. Fee ranges are provided for informational purposes only. In
certain transactions, minimum commission charges will apply. Certain commissions may be discounted by your Advisor at his or her discretion. Individual circumstances will determine
commission prices and whether you qualify for any waivers or discounts.
Fixed income transactions. The markup or markdown amount compensates us for executing the transaction. Purchases and sales of xed income securities may occur in the over-the-
counter markets and Merrill may act in a principal capacity (for its own account) in executing your order. The maximum markup/markdown will vary based on various criteria including
(1) product type (corporate bonds have higher markups/markdowns than government products); (2) maturity (shorter maturities have lower markups/markdowns); and (3) whether the
transaction is a purchase or a sale (purchases have higher markups than markdowns for sales due to the buy and hold nature of xed income securities). Certain xed income security
features such as call dates may result in lower markups/markdowns than shown in the xed income schedule. For products priced on a discount basis, including treasury bills, agency
discount notes and commercial paper, the markup can be up to 0.20% and there is no markdown. Mortgage-backed securities are subject to the same markups/markdowns as corporate
bonds and assessed on the security’s average life. Preferred securities are generally traded on stock exchanges where equity commissions will apply. When preferred securities are traded
in the over-the-counter markets, they are subject to the maximum markups/markdowns for xed income securities noted above.
When your transaction is executed in a principal capacity, markups/markdowns are disclosed on client conrmation statements as a total dollar amount and as a percentage of the
prevailing market price. Where a trade is executed by Merrill as agent, markups/markdowns are not charged but commissions may be charged and will be disclosed on client conrmation
statements. Commissions are subject to the same maximums as the markups/markdowns described above.
Mutual fund arrangements. We have prepared and provided to you a document entitled Mutual Fund Investing, which goes into greater detail on fees and expenses for mutual fund
share classes available through us. Fees and expenses in a mutual fund, including the sales charges paid by the fund to Merrill in connection with a purchase of fund shares, reduce
the net asset value of the fund and the investment return. Actual sales charges and trails, breakpoints and sales waivers are controlled by each fund’s prospectus and vary according to
type of strategy and fund. Please refer to each fund’s specic prospectus to understand the particular features of each share class. The Financial Industry Regulatory Authority (FINRA)
maintains a Mutual Fund Expense Analyzer tool on its website at www.nra.org/fundanalyzer that may help you in making a decision about which share class is best for you.
Merrill has entered into agreements with various mutual fund families or their service providers to be paid for sub-accounting and other services. Each fund’s operating costs include
(like other mutual fund expenses) its allocable share of the fees and expenses of these services. These service arrangements generally vary by mutual fund. The sub-accounting service
fee is deducted directly from the client’s investment in the mutual fund and/or paid by the fund’s service providers. In addition, mutual fund sponsors or managers pay Merrill a fee for
marketing support services that compensates us for the services we provide to our nancial advisors and to third-party mutual fund sponsors and distributors, for ongoing maintenance
of information and for due diligence relating to the oering of mutual funds at Merrill.
Alternative Investment arrangements. We or our afliates have negotiated fee sharing arrangements with managers of certain hedge funds and private market and real assets funds.
Under these arrangements, we or our afliates receive additional compensation in order to defray certain costs related to administrative, operational, marketing or other services we
provide in connection with your investment. The additional compensation is based on portions of the management fees, performance-based compensation and/or other asset-based
fees payable by these funds to the fund manager or its afliates or that are attributable to investments made in the fund through us or our afliates, including investments made by
you. The actual terms of our fee sharing arrangements with fund managers are disclosed in the oering materials of the relevant Alternative Investment fund or feeder fund, subject to
condentiality requirements and other obligations imposed by the fund managers.
Annuities arrangements. Merrill as broker-dealer and our afliate, Merrill Lynch Life Agency Inc. (MLLA) as general agent, have entered into selling agreements with unafliated
insurance companies to oer annuities. For annuities purchased in brokerage accounts, MLLA and your Advisor represent the insurance company in connection with the sale of the
annuity and provide services to you on behalf of the insurance company. Variable annuities and other registered annuity products are oered by prospectus. The terms and expenses for
each annuity (including surrender charges, optional benet charges and other insurance company expenses) are set out in a contract between you (annuity owner) and the insurance
company (annuity issuer). The commissions outlined above are paid to MLLA by the annuity issuer. The annuity issuer includes these charges in the pricing of its products. All annuity
contract guarantees, including optional benets, xed rates and annuity payout rates, are backed by the claims-paying ability of the annuity issuer. They are not backed by Merrill or its
afliates and neither Merrill nor its afliates makes any representations or guarantees regarding the claims-paying ability of the annuity issuer.
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Important Information
