Form CRS Relationship Summary
Last updated: June 24, 2020
H.C. Denison Co. (HCD) is broker-dealer registered with the United States Securities and Exchange Commission (SEC), a member of the Financial Industry Regulatory Authority (FINRA), and a member of the Securities Investor Protection Corporation (SIPC). HCD provides retail investors broker-dealer services only.
Brokerage and investment advisory services and fees differ and it is important for you to understand these differences. Free and simple tools are available to research firms and financial professionals at https://www.investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing
Q | What investment services and advice can you provide me?
HCD and its financial professionals offer brokerage services to retail investors.
If you choose to retain our services, one of our financial professionals will help you establish the appropriate account(s). You may select investments, or your financial professional will recommend that you buy, sell or hold securities. It is your choice to decide whether to follow the recommendations of your financial professional.
Unless your financial professional agrees otherwise, HCD is not required to monitor your portfolio or investments on an ongoing basis. Neither HCD nor your financial professional exercises discretion over the assets in your account.
HCD is able to buy, sell and exchange many types of securities, but your financial professional may only recommend the purchase, sale, or exchange of those securities in which he or she is licensed. We do not have an account size requirement to open or maintain an account with HCD.
Specific information about the services we provide and the fees you pay in relation to the brokerage services we offer can be found in HCD’s Customer Information Brochure and Hilltop Securities’ Client Information Brochure.
- Given my financial situation, should I choose a brokerage service? Why or why not?
- How will you choose investments to recommend to me?
- What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?
Q | What fees will I pay?
The fee you pay HCD is transaction based. You will pay HCD a commission to act as your “agent” when purchasing or selling a security other than a mutual fund. Commission fees are paid from your account. When HCD acts as “principal,” we will be compensated by marking-up or marking-down a security, which is the difference between what HCD charges you for the security and the value of the security. Mark-up and mark-down fees are paid within the transaction.
A load or a contingent deferred sales charge is a dollar amount you pay each time you purchase or redeem a mutual fund share. These fees reduce the amount of shares you receive when you purchase a fund’s shares and reduce the number of shares you receive when you redeem the fund’s shares. Mutual funds pay “12b-1 fees” to HCD for selling the funds. These fees are based upon a percentage of assets invested in the mutual fund. These fees are not paid from your account but are paid from the mutual fund. The result of such fees is that the dollar value of fund shares held in your account decreases.
HCD will charge fees for a number of services it (or its clearing firm) provides that are not included in the brokerage service fees we described above, such as custodian fees, maintenance fees, inactivity fees, and research fees.
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
- Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?
Q | What are your legal obligations to me when providing recommendations? How else does your firm make money and what conflicts of interest do you have?
When we provide you with a recommendation, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your investments. You should understand and ask us about these conflicts with your interests. You should understand and ask us about these conflicts because they affect the recommendations we provide you. Here are some examples to help you understand what this means.
HCD has an incentive to buy and sell securities more frequently in order to increase its compensation. HCD may recommend you purchase securities HCD owns and HCD may recommend buying securities that you own. Such transactions are called “principal transactions.”
- How might your conflicts of interest affect me, and how will you address them?
Q | How do your financial professionals make money?
Your financial professional receives a fixed percentage of the fee revenue he or she generates for HCD. Fee revenue includes commissions, loads, mark-ups, mark-downs, contingent deferred sales charges, 12b-1 fees, and commission trails from variable annuities. Your financial professional also has an incentive to encourage you to move your account from another firm to HCD, or previous employer retirement account to HCD in order to increase HCD revenue or his or her own compensation.
Q | Do your financial professionals have legal or disciplinary history?
Yes. HCD’s disciplinary history is available at https://www.investor.gov/CRS for a free and simple search tool to research HCD and your financial professionals.
- As a financial professional, do you have any disciplinary history? For what type of conduct?
- Who is my primary contact person? Is he or she a representative of an investment adviser or a broker-dealer? Who can I talk to if I have concerns about how this person is treating me?