EF Hutton Investments, LLC

Investment Advisory Agreement/ Services Agreement/ Limited Trading Authorization/ Fee Authorization

Subscription with Right to No-Commission Execution Thru Designated Broker-Dealer

Client Agreement:

You agree and understand that this agreement is between you and EF Hutton Financial Corp. and EF Hutton Investments, LLC (collectively “EF Hutton”).

Investment Advisory Agreement/ Services Agreement/ Limited Trading Authorization/ Fee Authorization

Subscription with Right to No-Commission Execution Thru Designated Broker-Dealer

I agree to appoint EF Hutton Investments, LLC (“My Advisor”) as my investment advisor to provide investment advisory services for my investment account. I understand that investment accounts risk loss of value over any short or long-term time period and there is no guarantee of projected profits.

Services provided by EF Hutton will include investment guidance regarding appropriate buys and sells of ETFs, mutual funds and other securities, execution of those trades through FINRA-registered broker-dealers selected by EF Hutton, and monthly or quarterly performance statements – depending on account activity.

I am giving EF Hutton limited trading authority (may be revoked at any time upon notification from me) through FINRA-registered broker dealers selected by EF Hutton for the purpose of providing these investment services.
If I elect to subscribe, I will receive the EF Hutton Daily Market Report that provided stock ideas based on technical indicators.  Subscription includes a right to no-commission trading through a third-party FINRA registered broker-dealer (the “Designated BD”) designated by EF Hutton. If I execute transactions with the Designated BD, I will be doing so on a self-directed basis – neither EF Hutton nor the Designated BD will solicit any specific transaction or manage or advise me except for guidance I receive from the Daily Market Report. To execute trades, I will have to open an account with the Designated BD which involves their own account approval process and administration. The Designated BD will pass thru to me the exchange fees and fees charged by its clearing agent. Per an agreement with EF Hutton, the Designated BD will not charge me a commission. I agree to indemnify and hold EF Hutton harmless in connection with any transactions I execute with the Designated BD.

I am also giving My Advisor authority to bill my account /accounts listed below periodically as set forth in the pricing section of the EF Hutton Investments ADV Part II Wrap Fee Brochure (the “Brochure”) at the annual rate listed below as a fee for the advisory service. Fees are billed in arrears at the end of each calendar quarter, or monthly, as described in the Brochure and are non-refundable. There are no pre-paid fees, except as described in the Brochure. This authority is also revocable by me at any time upon notification from me. Fees are subject to change with advanced notice as set forth in the Brochure.

I have reviewed all the account opening documents – including: EF Hutton’s Regulatory Form ADV, Firm Brochure, Wrap Fee Brochure, as well as the Client Agreement, Service Agreement, Electronic Signatures Agreement and EF Hutton’s Privacy Policy (each of which is attached as an exhibit to this document and made a part hereof) and have received all pertinent ‘risk of account value loss’ disclosures regarding investment accounts. I understand that the attached account opening documents are integral my agreement with EF Hutton. I agree to review EF Hutton’s privacy policy on its website at least once each month and any periodic updates thereto and unless I object to any privacy policy update within forty days, I will be bound by any revised terms.

I also understand that all investment assets are held by a third-party custodian selected by EF Hutton and that I will be subject to the custodian agreement executed by EF Hutton.
This agreement is cancellable upon notice by either party, and it is assignable unless I object within 30 days of notice by EF Hutton. I have five days to cancel this agreement, if it has not been available to me at least 48 hours before signing, without incurring any fees or penalties.

This Agreement is exercisable in paper or electronic form. Check below, or indicated in electronic forms, for each service opening.
Subscription to EF Hutton Daily Market Report and Right to Execute Transactions with Designated BD without Commission.

EF Hutton offers the following plans:

o        EasyTrade Stocks only Plan $29.95 – Unlimited Stock Trading for the month.
o        EasyTrade Stocks only Plan $295.00 – Unlimited Stock Trading for the year.
o        EasyTrade Stocks and Options Plan $74.95 – Unlimited Stock and Options trading for the month.
o        EasyTrade Stocks and Options Plan $695.00 –Unlimited Stock and Options trading for the year.

Interactive Web-Based Investment Management Services

Self Directed -

1. Standard
•       Fully-Self Directed
•       Automated Investment Management
•        No assigned advisor representative
•        E-mail statement
•        Can open account with a little as $200
•        Advisor Representative Web Consultation for:
o Financial Planning Advice
o Review of Investment Strategies
o No individualized advice

Account Balance less than $25,000
Fees: 40 basis points per year, $3.00 account opening fee, $3.00 per month

Account Balance 25,000 to $100,000
Fees: 30 basis points per year, No account opening fee, No monthly charge
Online Chat Consult with Advisor available

Account Balance over $100,000
Fees:25 Basis points per year, No account opening fee, No monthly charge
Online chat consult with Advisor available

2. Premium
Self-Directed With Advisor Assistance & Automated Investment Management
•        Wider range of portfolio choices and investment alternatives
•        Assigned advisor representative
o Available for interactive website consult
o E-mail Statement
Requires $250,000 minimum to open account
Account Balance:Minimum $250,000
Fees: 50 basis points per year,        No account opening fee, No monthly fee

Full Client Asset Management Services:

Full Service – Dedicated Advisor
EF Hutton Full Service Advisor Representative
For Client’s with more complex investment needs requiring a dedicated personal advisor

•        Dedicated online EF Hutton investment advisor representative
•        Investment recommendations
•        Wider set of investment choices including alternatives and Reg D investments
•        Use of automated / personal service
•        Quarterly performance review
•        Interaction with Client’s Tax Advisor
•        E-mail Statement
•        Requires $500,000 minimum to open account

Account Balance: Minimum $500,000
Fees: No account opening fee. $100 quarterly fee -and- 7 basis points (0.07 per month for a total of 84 basis points) (0.84 annually.)

For Investment Accounts, each month the monthly portion of the annual fee based on average daily balance will be charged.

Your exact fee schedule will be detailed in your agreement for services. Fee schedules are subject to change 60 days after written notice, which may be given via electronic mail. Our fee schedule is fixed and non-negotiable.

PLEASE SIGN IN THE SPACE PROVIDED BELOW – OR INDICATE AGREEMENT THROUGH ELECTRONIC MEANS AS DESCRIBED IN THE CLIENT AGREEMENT AND ON THE WEBSITE.

Primary Client Signature_____________________________ Date__________________
Address_________________________________________________________________
Telephone _____________________________________SSN______________________
Joint Client Signature_____________________________ Date__________________
Address_________________________________________________________________
Telephone _____________________________________SSN______________________

 

EXHIBITS

________

 

1

Firm Brochure……………………….. 3

2

Wrap Account Brochure...….....22

3

4

5

6

Services Agreement ………….….. 42Covers Automated Services:

  • Basic Account
  • Premium Account

Full Service Agreement………. 57

  • Institutional & Family

Wealth Advisory Account

Notice and Consent to ………….. 59

Electronic Signatures

Privacy Policy………………….…….. 61

 

Form ADV is the uniform form used by investment advisers to register with both the Securities and Exchange Commission (SEC) and state securities authorities. The form consists of two parts. Part 1 requires information about the investment adviser’s business, ownership, clients, employees, business practices, affiliations, and any disciplinary events of the adviser or its employees. Part 1 is organized in a check-the-box, fill-in-the-blank format. The SEC reviews the information from this part of the form to process registrations and manage its regulatory and examination programs. Although designed for a regulatory purpose, investment adviser filings of Part 1 are available to the public on the SEC’s Investment Adviser Public Disclosure (IAPD) website at www.adviserinfo.sec.gov.

Part 2 requires investment advisers to prepare narrative brochures written in plain English that contain information such as the types of advisory services offered, the adviser’s fee schedule, disciplinary information, conflicts of interest, and the educational and business background of management and key advisory personnel of the adviser. The brochure is the primary disclosure document that investment advisers provide to their clients. When filed, the brochures are available to the public on the IAPD website.

 

WRAP FEE BROCHURE

Form ADV is the uniform form used by investment advisers to register with both the Securities and Exchange Commission (SEC) and state securities authorities. The form consists of two parts. Part 1 requires information about the investment adviser’s business, ownership, clients, employees, business practices, affiliations, and any disciplinary events of the adviser or its employees. Part 1 is organized in a check-the-box, fill-in-the-blank format. The SEC reviews the information from this part of the form to process registrations and manage its regulatory and examination programs. Although designed for a regulatory purpose, investment adviser filings of Part 1 are available to the public on the SEC’s Investment Adviser Public Disclosure (IAPD) website at www.adviserinfo.sec.gov.

Part 2 requires investment advisers to prepare narrative brochures written in plain English that contain information such as the types of advisory services offered, the adviser’s fee schedule, disciplinary information, conflicts of interest, and the educational and business background of management and key advisory personnel of the adviser. The brochure is the primary disclosure document that investment advisers provide to their clients. When filed, the brochures are available to the public on the IAPD website.

 

Form ADV is the uniform form used by investment advisers to register with both the Securities and Exchange Commission (SEC) and state securities authorities. The form consists of two parts. Part 1 requires information about the investment adviser’s business, ownership, clients, employees, business practices, affiliations, and any disciplinary events of the adviser or its employees. Part 1 is organized in a check-the-box, fill-in-the-blank format. The SEC reviews the information from this part of the form to process registrations and manage its regulatory and examination programs. Although designed for a regulatory purpose, investment adviser filings of Part 1 are available to the public on the SEC’s Investment Adviser Public Disclosure (IAPD) website at www.adviserinfo.sec.gov.

Part 2 requires investment advisers to prepare narrative brochures written in plain English that contain information such as the types of advisory services offered, the adviser’s fee schedule, disciplinary information, conflicts of interest, and the educational and business background of management and key advisory personnel of the adviser. The brochure is the primary disclosure document that investment advisers provide to their clients. When filed, the brochures are available to the public on the IAPD website.

 

Part 2A of Form ADV: Firm Brochure

ITEM 1 – COVER PAGE

EF Hutton Investments LLC

One Main Street

Springfield, OH 45502

937-323-2000

www.efhutton.com/investments

Date of Disclosure Brochure:   July 2017

This brochure provides information about the qualifications and business practices of EF Hutton Investments LLC (also referred to we, us, and “EF Hutton”), a registered investment adviser.

Registration does not imply a certain level of skill or training.  If you have any questions about the contents of this brochure, please contact us at support@efhutton.com.    

The information in this brochure has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority.

Additional information about EF Hutton is available on the SEC’s website at www.adviserinfo.sec.gov.  You can view our firm’s information on this website by searching for EF Hutton Portfolio Solutions, LLC or our firm’s CRD number 285108.

ITEM 2 – MATERIAL CHANGES

Since filing the last annual amendment to this brochure in March 2017, we have moved the firm’s principal office location and place of business to Springfield, Ohio.  See the cover page of the brochure for the address and contact information.  Slight changes were made to Item 5 to emphasis services provided through our firm’s interactive website.  We also removed Dave Winn from Item 13 and replaced him with Hugh Rhodes as responsible for developing investment models, determining appropriate rebalancing procedures and leading all reviews.

 

We will ensure that you receive a summary of any material changes to this and subsequent disclosure brochures within 120 days after our firm’s fiscal year ends.  Our firm’s fiscal year ends on December 31, so you will receive the summary of material changes no later than April 30 each year.  At that time we will also offer or provide a copy of the most current disclosure brochure.  We may also provide other ongoing disclosure information about material changes as necessary.

ITEM 3 – TABLE OF CONTENTS

ITEM 2 – MATERIAL CHANGES 2

ITEM 3 – TABLE OF CONTENTS 3

ITEM 4 – ADVISORY BUSINESS 3

ITEM 5 – FEES AND COMPENSATION 7

ITEM 6 - PERFORMANCE-BASED FEES AND SIDE-BY-SIDE MANAGEMENT 10

ITEM 7 – TYPES OF CLIENTS 10

ITEM 8 – METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS 11

ITEM 9 – DISCIPLINARY INFORMATION 13

ITEM 10 – OTHER FINANCIAL INDUSTRY ACTIVITIES AND AFFILIATIONS 14

ITEM 11 – CODE OF ETHICS, PARTICIPATION IN CLIENT TRANSACTIONS AND PERSONAL TRADING 15

ITEM 12 – BROKERAGE PRACTICES 15

ITEM 13 – REVIEW OF ACCOUNTS 17

ITEM 14 – CLIENT REFERRALS AND OTHER COMPENSATION 18

ITEM 15 – CUSTODY 18

ITEM 16 – INVESTMENT DISCRETION 18

ITEM 17 – VOTING CLIENT SECURITIES 19

ITEM 18 – FINANCIAL INFORMATION 19

CUSTOMER PRIVACY POLICY NOTICE 20

ITEM 4 – ADVISORY BUSINESS

EF Hutton Investments, LLC (“EF Hutton”) is an SEC registered investment adviser firm formed as a Wyoming limited liability company.  We provide investment management services primarily through a web-based application to our clients.  We are also available to work with clients on an individual, in-person basis. 

Christopher J. Daniels is the controlling owner of EF Hutton through intermediary subsidiaries.  Stanley Hutton Rumbough holds a material ownership stake.

Formed in May 2015, we have been in business as an investment adviser since August 25, 2016.  EF Hutton acquired the investment advisor registration of Phoenix Investments through a proper succession filing.  Phoenix Investments deemed it appropriate to transfer its investment adviser registration to EF Hutton effective August 25, 2016. 

Description of Interactive Web-Based Investment Management Services

EF Hutton offers investment management services by providing you continuous and ongoing supervision over your specified accounts.  Our services are provided through an interactive website using computer-based models and applications to collect your information and provide investment advice.

Services are provided through our website at www.efhutton.com/investments; our mobile apps and through co-branded pages and widgets hosted by third-party vendors that have contracted to offered our platform (collectively the “Website”).  EF Hutton’s online platform allows clients to:

• View financial accounts in an easily accessible interface;

• Monitor and analyze investment positions;

• Receive real-time and delayed market data and news;

• Determine portfolio performance and other analytics;

• Create and modify mock portfolios and back-test investment ideas;

• Receive recommendations and information about investments; and,

EF Hutton’s technology enables you to transfer their account data securely onto EF Hutton’s secure user platform. You then have the ability to see their entire consolidated portfolio in one place, regardless of which account or how many accounts they have or what firms at which those accounts are held.

To determine your financial situation and investment objectives, we will need to obtain certain information from you through our interactive website.  You will be responsible for providing any changes to your financial situation or investment objectives by updating your responses on our interactive website.   

Investment recommendations and decisions are made based solely upon algorithms that determine your needs based on existing investment position, risk tolerance, investment goals and transaction history (as provided by you via the EF Hutton website).

Each individualized portfolio is designed to be consistent with your investment objectives and risk tolerances. We create an investment plan and manage your portfolio by seeking to identify: 1) the optimal asset classes in which to invest, 2) efficient investments to represent each of those asset classes, 3) the ideal mix of asset classes based on your specific risk tolerance, 4) the most appropriate time to rebalance your portfolio to maintain intended risk tolerance and optimal return for your risk level.  EF Hutton will tailor its allocation and investment management strategies based on your risk tolerance. 

EF Hutton primarily utilizes mutual funds and Exchange Traded Funds (ETFs) for client portfolios.  We may also use individual stock and bond positions for tax loss harvesting purposes and investment style. Please see Item 8 - Methods of Analysis, Investment Strategies and Risk of Loss for a description of the types of investments we provide advice on and strategies we use. EF Hutton’s online also allows you to:

• View financial accounts in an easily accessible interface;

• Monitor and analyze investment positions;

• Receive real-time and delayed market data and news;

• Determine portfolio performance and other analytics;

• Create and modify mock portfolios and back-test investment ideas; and

• Receive recommendations and information about investments.

You must appoint our firm as your investment adviser of record on specified accounts (collectively, the “Account”).  The Account consists only of separate account(s) held by qualified custodian(s) under your name by TD Ameritrade, Inc. which serves as qualified custodian and broker/dealer.  As qualified custodian, TD Ameritrade, Inc., maintains physical custody of all funds and securities of the Account, and you retain all rights of ownership (e.g., right to withdraw securities or cash, exercise or delegate proxy voting and receive transaction confirmations) of the Account.  Please see Item 12 – Brokerage Practices for more information regarding TD Ameritrade, Inc. 

It is important that you understand that we manage investments for other clients and may give them advice or take actions for them or for our personal accounts that is different from the advice we provide to you or actions taken for you.  We are not obligated to buy, sell or recommend to you any security or other investment that we may buy, sell or recommend for any other clients or for our own accounts.

Conflicts may arise in the allocation of investment opportunities among accounts that we manage.  We strive to allocate investment opportunities believed to be appropriate for your account(s) and other accounts advised by our firm among such accounts equitably and consistent with the best interests of all accounts involved.  However, there can be no assurance that a particular investment opportunity that comes to our attention will be allocated in any particular manner.  If we obtain material, non-public information about a security or its issuer that we may not lawfully use or disclose, we have absolutely no obligation to disclose the information to any client or use it for any client’s benefit.

Standard vs. Premium Services

EF Hutton offers standard Web-Based Investment Services that are available to any investor for a lower cost compared to the Premium service which is available to investors seeking a wider range of investment choices and a more complex set of portfolio components.  Such portfolios are designed to focus on   more specialized investment goals.

Administrative Service Providers

EF Hutton has contracted with and pays unaffiliated, third-party service providers to utilize their investment software technology.  The service providers are not investment advisers or broker/dealers, but work with investment advisory firms, like EF Hutton, to help develop, customize, and implement web based, interactive investment advisory services and deliver services to clients. Service providers support our firm by providing such things as a customized website, website administration, risk questionnaire, portfolio implementation and rebalancing.  They also provide assistance with fee calculation, billing, and provide other functions related to the administrative tasks of managing client accounts.  Due to this arrangement, service providers will have access to EF Hutton client accounts and client information, but will not serve as an investment advisor to EF Hutton clients.  Service providers will obtain access to client account and client information.  Fees we pay to service providers for their administrative and platform services come from the management fees we charge to client accounts.  You will not pay a separate or additional fee directly to the service provider.  Please refer to Item 5 – Fees and Compensation for details about the fees charged for our services.

Direct-Client Asset Management Services

In addition to our internet-based service, we work with a select number of clients on a traditional, one-on-one, in-person basis by providing continuous and ongoing supervision over your specified accounts. Through this service we will typically utilize our web-based platform to manage your account and provide services.

For the one-on-one services, you must appoint EF Hutton as your investment adviser of record on specified accounts (collectively, the “Account”). The Account consists only of separate account(s) held under your name by TD Ameritrade, which serves as custodian and broker/dealer for execution of certain transactions.

The Account is managed by us based on your financial situation, investment objectives and risk tolerance.  We actively monitor the Account and provide advice regarding buying, selling, reinvesting, or holding securities, cash or other investments of the Account.

We will need to obtain certain information from you to determine your financial situation and investment objectives. You will be responsible for notifying us of any updates regarding your financial situation, risk tolerance or investment objective and whether you wish to impose or modify existing investment restrictions; however we will contact you at least annually to discuss any changes or updates regarding your financial situation, risk tolerance or investment objectives.  We are always reasonably available to consult with you about the status of your Account.  You have the ability to impose reasonable restrictions on the management of your accounts, including the ability to instruct us not to purchase certain securities.

It is important that you understand that we manage investments for other clients and may give them advice or take actions for them or for our personal accounts that is different from the advice we provide to you or actions taken for you.  We are not obligated to buy, sell or recommend to you any security or other investment that we may buy, sell or recommend for any other clients or for our own accounts.

Conflicts may arise in the allocation of investment opportunities among accounts that we manage.  We strive to allocate investment opportunities believed to be appropriate for your account(s) and other accounts advised by our firm among such accounts equitably and consistent with the best interests of all accounts involved.  However, there can be no assurance that a particular investment opportunity that comes to our attention will be allocated in any particular manner.  If we obtain material, non-public information about a security or its issuer that we may not lawfully use or disclose, we have absolutely no obligation to disclose the information to any client or use it for any client’s benefit.

Recommendation of Unaffiliated Sub-Advisers 

For certain investment strategies, we utilize unaffiliated, third-party investment advisers serving as “Sub-Advisers” to manage all or a portion of your assets.  Therefore, we may recommend Sub-Advisers to you that we have screened and qualified.  EF Hutton evaluates all such Sub-Advisers pursuant to a predetermined set of criteria prior to accepting any Sub-Adviser onto the EF Hutton network. EF Hutton will review the investment adviser’s assets under management, investment experience, disciplinary history, past performance, and numerous other factors. Further the investment adviser must agree to share a percentage of any investment advisory fees from the clients with EF Hutton. Clients are encouraged to conduct their own research into any recommended investment adviser, including, but not limited to consulting with independent tax, legal or financial advisers as necessary. Clients are encouraged to consider their individual circumstances, risk tolerance and needs prior to following any EF Hutton generated recommendation.

Any Sub-Adviser selected by EF Hutton shall be registered or exempt from registration in your home state. The recommendation of a Sub-Adviser shall be made on a non-discretionary basis.  The decision to use a Sub-Adviser is always based on each client’s individual needs. A complete description of the third-party investment advisor’s services acting as Sub-Adviser, fee schedules and account minimums will be disclosed in the third-party investment advisor’s Form ADV Disclosure Brochure which will be provided to clients at the time an account is established with the Sub-Adviser. 

We are always available to answer questions you may have regarding the portion of your account managed by the Sub-Adviser and act as the communication conduit between you and the Sub-Adviser.  Sub-Advisers will generally take discretionary authority to determine the securities to be purchased and sold for your accounts. 

Tailor Advisory Services to Individual Needs of Clients

Investment recommendations are generated from an algorithm that incorporates each Clients’ existing investment portfolio, risk profile and investment objectives as provided to EF Hutton by the Client. EF Hutton utilizes the Client’s existing portfolio information to make recommendations for investments in similar securities based on a limited number of factors (for example, past performance of the securities, associated fees, etc.). Such recommendations are based solely on the on the information and data filed by the issuers of securities with various government regulators or made directly available to EF Hutton by such issuers, or indirectly through other third party sources. Although EF Hutton, through its software, evaluates such information and data, EF Hutton is not in a position to confirm the completeness, genuineness or accuracy of such information and data, and in some cases complete and accurate information is not readily available.

Our services are always provided based on the individual needs of each client.  This means, for example, that you are given the ability to impose restrictions on the accounts we manage for you, including specific investment selections and sectors.  We determine client information through questionnaires and fact-finding information to determine the client’s investment objectives and suitability information.

We manage client accounts in accordance with one or more investment models.  When client accounts are managed using models, investment selections are based on the underlying model and we do not develop customized (or individualized) portfolio holdings for each client.  However, the determination to use a particular model or models is always based on each client’s individual investment goals, objectives and mandates.

Wrap Fee Programs

Our investment management services are considered wrap-fee programs.  A wrap-fee program is defined as any advisory program under which a specified fee or fees not based directly upon transactions in a client’s account is charged for investment advisory services (which may include portfolio management or advice concerning the selection of other investment advisers) and the execution of client transactions.  Whenever a fee is charged to a client for services described in this brochure (whether wrap fee or non wrap fee), we will receive portion of the fee charged.

Assets Under Management

As a newly registered investment adviser, EF Hutton has no assets under management to report as of the date of this Brochure (July 2017).

ITEM 5 – FEES AND COMPENSATION

Fees charged for our services are charged based on a percentage of assets under management, billed in arrears (at the end of the billing period) on a quarterly monthly basis and calculated based on the fair market value of your accounts as of the last business day of the current billing period. 

Fees are prorated (based on the number of days service is provided during the initial billing period) for your account opened at any time other than the beginning of the billing period.  If asset management services are commenced in the middle of the billing period, then the prorated fee for that billing period will be billed in arrears at the end of that billing period.

Fees are charged in accordance with the following fee schedule which covers the compensation earned by our firm and any Sub-Advisers selected to assist with the management of your accounts.  In addition to the investment advisory services, fees collected also cover all brokerage transaction (i.e. trade ticket) expenses and fees assessed by TD Ameritrade. 

Criteria

Type

Account

Balance

(based on average balance)

Fees

Interactive Web-Based Investment Management Services

Standard

Fully-Self Directed

Automated Investment Management

  • No assigned advisor representative
  • E-mail statement
  • Can open account with a little as $200
  • Advisor Representative Web Consultation for:

o Financial Planning Advice

o Review of Investment Strategies

o No individualized advice

Less than $25,000

40 basis points per year

$3.00 account opening fee

$3.00 per month

$25,000 to $100,000

30 basis points per year

No account opening fee

No monthly charge

Online chat Consult with Advisor available

Over $100,000

25 Basis points per year

No account opening fee

No monthly charge

Online chat consult with Advisor available

     

Premium

Self-Directed With Advisor Assistance

Automated Investment Management

  • Wider range of portfolio choices and investment alternatives
  • Assigned advisor representative

o Available for interactive web

  • E-mail Statement
  • Requires $250,000 minimum to open account

Minimum $250,000

No account opening fee

No monthly fee

50 basis points

Full  Client Asset Management Services

Full Service – Dedicated Advisor

EF Hutton Full Service Advisor Representative

For Client’s with more complex investment needs requiring a dedicated personal advisor

  • Dedicated EF Hutton investment advisor representative
  • Investment recommendations
  • Wider set of investment choices including alternatives and Reg. D investments
  • Use of automated / personal service
  • Quarterly performance review
  • Interaction with Client’s Tax Advisor
  • E-mail Statement
  • Requires $500,000 minimum to open account

  

Minimum

$500,000

No account opening fee.

$100 quarterly fee.

-and-

7 basis points (0.07%) per month for a total of 84 basis points (0.84%) annually.

For Investment Accounts, each month the monthly portion of the annual fee based on average daily balance will be charged.

Your exact fee schedule will be detailed in your agreement for services.  Fee schedules are subject to change 60 days after written notice, which may be given via electronic mail. Our fee schedule is fixed and non-negotiable. 

EF Hutton believes that its annual fee is reasonable in relation to:  (1) services provided and (2) the fees charged by other investment advisers offering similar services/programs.  However, our annual investment advisory fee may be higher than that charged by other investment advisers offering similar services/programs.  In addition to our compensation, you may also incur charges imposed at the mutual fund level (e.g., advisory fees and other fund expenses).

How Fees are Collected

Our investment advisory fees will be deducted from your account and paid directly to our firm by TD Ameritrade.  You must designate EF Hutton as your investment adviser on the accounts you’d like EF Hutton to manage.  EF Hutton will be granted limited power-of-attorney on the account to implement trades within the account and (when agreed to by the client) deduct the EF Hutton advisory fees from the account.  TD Ameritrade will send client statements, at least quarterly, showing all disbursements for the account including the amount of the advisory fee deducted directly from the account. 

You should review your account statements received from the qualified custodian(s) and verify that appropriate investment advisory fees are being deducted.  TD Ameritrade will not verify the accuracy of the investment advisory fees deducted.  It is EF Hutton and client’s responsibility to verify the accuracy of EF Hutton’s fee calculation.

Other Fees and Expenses

In addition to the fee charged by our firm which covers our investment advisory services and the transaction/execution services provided by TD Ameritrade, you may incur certain charges imposed by third parties other than EF Hutton in connection with investments made through your account including, but not limited to surrender charges, internal mutual fund expenses IRA and qualified retirement plan fees and non-transaction/execution fees and charges imposed by TD Ameritrade.  Management fees charged by EF Hutton are separate and distinct from the fees and expenses charged by mutual funds that are held in your account.  A description of these fees and expenses are available in each mutual fund prospectus.  We do not receive any portion of such fees or expenses.

We do not accept or receive compensation based on the sale of securities or other investment products such as asset-based sales charges or service fees from the sale of mutual funds, or as a placement agent for any type of securities.

Termination

A client may terminate its advisory relationship at any time upon no more than 30 days prior notice. Upon termination of any account, any earned, unpaid fees will be due and payable. Such fees are prorated based on the number of days left in the billing period

There will be no termination fee; however, client accounts may be subject to a modest cost of reimbursement of fees related to transferring client's account. Such fees would be charged by the client's account custodian and EF Hutton will not receive any portion of such fee.

ITEM 6 - PERFORMANCE-BASED FEES AND SIDE-BY-SIDE MANAGEMENT

Not applicable to EF Hutton. EF Hutton does not charge performance-based fees.

ITEM 7 – TYPES OF CLIENTS

EF Hutton provides investment management services to natural person, individual clients and their family accounts.

Our Direct-Client Asset Management Services are available only to high-net worth clients which we define as clients with at least $1,000,000 of investable assets; or income for the last two years that is greater than $200,000 individually or $300,000 with a spouse.

You are required to execute a written agreement with EF Hutton specifying the particular advisory services in order to establish a client arrangement with EF Hutton.

Minimum Investment Amounts Required and Other Conditions

EF Hutton requires a minimum of $200 in order to open an account through our Website.   

Investors evaluating EF Hutton’s web based investment management service should be aware that EF Hutton’s relationship with clients is likely to be different from the “traditional” investment advisor relationship in several aspects:

1. EF Hutton’s internet advisory service is a software based investment advisor which means each client must acknowledge her ability and willingness to conduct her relationship with EF Hutton on an electronic basis. Under the terms of our agreement, each client agrees to receive all account information and account documents (including this Brochure), and any updates or changes to same, through their access to our website and EF Hutton’s electronic communications. Unless noted otherwise on the website or within this Brochure, EF Hutton’s advisory service, the signature for our client agreement, and all documentation related to the advisory services are managed electronically. EF Hutton does make individual representatives available to discuss servicing matters with clients.

2. To provide its advisory services and tailor its investment decisions to each client’s specific needs, EF Hutton collects information from each client, including specific information about their investing profile such as financial situation, investment experience, and investment objectives. EF Hutton maintains this information in strict confidence subject to our Privacy Policy. When customizing our investment solutions, EF Hutton relies upon the information received from a client.  Although EF Hutton contacts its clients periodically as described further in Item 13 below, a client must promptly notify EF Hutton of any change in her financial situation or investment objectives that might require a review or revision of her portfolio.

3. The software based financial advisor service includes preselected ETFs and mutual funds for each asset class within the plan recommended to a client. EF Hutton does not allow clients to select their own investments because each mutual fund and asset class is considered to be part of the overall investment plan. Investors with overly restrictive investment restrictions may not be permitted to become clients.

ITEM 8 – METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS

Methods of Analysis and Investment Strategies

As described previously in this brochure, EF Hutton formulates and provides Clients with investment advice via its Website. In all cases, including those where the services are made available through a co-branded partner website, EF Hutton’s web-based platform is powering the investment advisory services and hosting Client data.

As it pertains to Securities and Brokerage Recommendations, EF Hutton’s software platform generates recommendations on the basis of an analysis of investment data, trading patterns and your existing portfolio investments.

When making Securities recommendations, EF Hutton’s algorithms seek to identify better performing and/or lower cost (e.g. lower fees, loads and/or expenses) investment options within the same or a similar category (e.g. tracks the same index, has similar holdings or is within the same category of investment) of investment that your currently hold in your portfolio.

Unlike other types of recommendations generated by EF Hutton, EF Hutton considers your personal characteristics and risk tolerance when assessing the suitability of various Sub-Advisers on our platform. EF Hutton analyzes various information from Sub-Advisers on our platform and then makes a recommendation if EF Hutton deems a Sub-Adviser to be generally suitable for a client.

EF Hutton only recommends Sub-Advisers that utilize the EF Hutton platform. As such EF Hutton recommends Sub-Advisers from a limited group. Clients should be aware that similar investment advisers may be available and Clients are encouraged to compare any investment advisers recommended by EF Hutton to similar investment advisers that do not utilize the EF Hutton platform.

Risk of Loss

Clients are strongly encouraged to conduct their own analysis of, and investigation into, the methodologies employed by EF Hutton in making its recommendations. The fact that a recommendation is generated by EF Hutton’s investment software cannot be interpreted as a guarantee of future performance. Investing in securities involves risk of loss that Clients should be prepared to bear.

EF Hutton conducts its analyses primarily using detailed historical information. As with any investment, past performance is no guarantee of its future success.

EF Hutton relies on third parties for the provision of market statistics, fund details, performance, and related information and although these parties are generally reliable and reputable, there may be inaccuracies or discrepancies in the information that is beyond EF Hutton’s control.

EF Hutton bases its recommendations on information provided by Clients and relies on the Client to provide accurate information. If the Client provides inaccurate information, or does not verify that EF Hutton’s portfolio tracker has accurately captured the Client’s portfolio holdings when syncing with the Client’s account, this will impact the quality and relevance of EF Hutton’s recommendations. As such, Clients are urged to verify any account holdings synced to the user platform for accuracy, as recommendations are based upon such information.

EF Hutton provides recommendations to Clients based on investment software that utilizes various quantitative and qualitative models. Such computer generated recommendations, like all investment recommendations, may be subject to system error. No guarantee or representation is made that the investment recommendations will be successful. EF Hutton may simply fail to identify favorable investment opportunities or to evaluate those investments recommendations accurately that it does make to Clients. Further, as market dynamics (for example, due to changed market conditions and participants) shift over time, a previously highly successful model may become outdated or inaccurate, perhaps without the computer software system recognizing the change before further recommendations are made. As such, Clients are urged to verify any recommendations generated by the EF Hutton software platform with their own legal, financial, tax and economic advisors and to conduct their own due diligence on recommended Securities before following any recommendation. Additionally, there are certain risks associated with utilizing automated investment tools like the one offered by EF Hutton.

  • Our investment tool is programmed to use certain economic assumptions that may not be updated in a timely manner or shifts in the market.
  • The output of the automated investment tool depends upon the accuracy of the information inputted into the tool.
  • There may be certain factors or variables which have not been included in the automated investment tool.  To the extent some questions are over-generalized, ambiguous or designed to fit a pre-determined option, the output may not be right for all investor’s needs or goals.
  • By only using the automated investment service, investors could lose out on the value of human judgment and oversight.  Investors may lose out on these qualities when interacting with only a computer program.

There is no guarantee that a mutual fund or ETF will achieve its objective. The Securities share price fluctuates and investors can lose money by investing in the Securities. Securities may differ from each other in terms of investment style, objectives, management, geographical markets, holdings and numerous other factors. For a full description of the risks inherent in any specific Security, Clients should read the prospectus of the particular Security recommended. EF Hutton only recommends investment advisers that utilize the EF Hutton platform. As such EF Hutton recommends investment advisers from a limited group. Clients should be aware that similar investment advisers may be available and Clients are encouraged to compare any investment advisers recommended by EF Hutton to similar investment advisers that do not utilize the EF Hutton platform.

In making investment recommendations there are a number of factors that EF Hutton does not consider, including but not limited to:

Tax Implications: With the exception of its tax loss harvesting recommendations, EF Hutton does not consider the Client specific tax implications with respect to the recommendations that it makes. In making recommendations to Clients, EF Hutton does not consider the tax characteristics of the individual Client, holding periods of securities, or other similar factors. Each Client must rely on its own examination, and that of its financial, tax and legal advisors in evaluating the merits and risks involved in selecting the Security. Clients should not construe the contents of the Website or any recommendation made by EF Hutton as tax advice. Each Client must rely upon its own representatives as to tax and other aspects of an investment in Securities and as to its suitability for such Client.

Frequency of Trading: With the exception of recommendations specifically focused on the frequency of the Client’s trading (e.g., a recommendation that the Client trade less frequently), EF Hutton does not consider the frequency of a Client’s trading when the proprietary software generates a recommendation. If a Client’s investment approach involves a high level of trading and turnover of the Client’s investments such approach may generate tax implications (such as short-term capital gains) and other similar consequences that could negatively impact the value of the Client’s investment portfolio.

Certain Characteristics of Existing Portfolios: EF Hutton does not consider the restrictions that may be inherent in a Client’s existing investment accounts when making investment recommendations. For example, when making a recommendation to sell a security and replace it with a similar security, EF Hutton does not consider (but attempts to disclose) whether the existing security would be subjected to an early redemption fee if the Client sells such security.

Material Risks of Investing in Mutual Funds and ETF’s Exchange Traded Funds:  An ETF generally is an investment company, unit investment trust or a portfolio of securities deposited with a depository in exchange for depository receipts. The portfolios of ETFs generally consist of common stocks that closely track the performance and dividend yield of specific securities indices, either broad market, sector or international. ETFs provide investors the opportunity to buy or sell throughout the day an entire portfolio of stocks in a single security. Although index mutual funds are similar, their shares are generally issued and redeemed only once per day at market close. Investment in an ETF involves payment of such company’s pro rata share of administrative fees charged by such company, in addition to those paid by a Client.  Mutual Funds. An investment in mutual funds could lose money over short or even long periods. Clients should expect the fund’s share price and total return to fluctuate within a wide range, like the fluctuations of the overall stock market. A mutual fund’s performance could be impacted by a number of factors including but not limited to: Investment style risk, the chance that returns from small and mid capitalization growth stocks will trail returns from the overall stock market. Historically, small and mid-cap stocks have been more volatile in price than the large-cap stocks that dominate the overall market, and they often perform quite differently. Small and mid-size companies tend to have greater stock volatility because, among other things, these companies are more sensitive to changing economic conditions. Stock market risk, the chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices. Manager risk, the chance that a mutual fund manager may make a poor security selection or focus on securities in a particular sector, category, or group of companies will cause the mutual fund to underperform relevant benchmarks or other funds with a similar investment objective.

ITEM 9 – DISCIPLINARY INFORMATION

Neither EF Hutton nor any of its employees have had any administrative proceedings before the SEC, any other federal regulatory agency, any state regulatory agency, or any foreign financial regulatory authority. Neither EF Hutton, nor any of its employees, has had any proceedings before a self-regulatory organization.

ITEM 10 – OTHER FINANCIAL INDUSTRY ACTIVITIES AND AFFILIATIONS

EF Hutton is not and does not have a related person that is a broker/dealer, municipal securities dealer, government securities dealer or broker, an investment company or other pooled investment vehicle (including a mutual fund, closed-end investment company, unit investment trust, private investment company or "hedge fund," and offshore fund), a futures commission merchant, commodity pool operator, or commodity trading advisor, a banking or thrift institution, an accountant or accounting firm, a lawyer or law firm, an insurance company or agency, a pension consultant, a real estate broker or dealer, and a sponsor or syndicator of limited partnerships.

Third – Party Investment Advisor Arrangements

As described in Item 4 – Advisory Business, Item 5 – Fees and Compensation, and Item 8 - Methods of Analysis, Investment Strategies and Risk of Loss we recommend independent, third-party investment advisors to serve as Sub-Advisers. 

We do not receive a referral fee or solicitor fee from third-party Sub-Advisers we recommend from clients.  The only compensation we receive is the management fee we charge directly to our clients.   This policy helps us avoid selecting Sub-Advisers based on our economic interests.  Instead, we select Sub-Advisers we believe are most appropriate for our clients absent additional economic benefits we could receive from a money manager.  We will compensate Sub-Advisers from our management fees as described in Item 5.

No Commission Trading Service

EF Hutton enables its clients to trade stocks and options with no commission payment.  EF Hutton offers this service for a single monthly fee in association with a strategic partner whose subsidiary, Tradier Brokerage Inc., is a FINRA-registered broker-dealer.  This trading service is intended to be a convenient method for clients to conduct their personal trading and investing activities through the EF Hutton website which can be accessed online or through any web-enabled mobile device. 

All trade execution is through Tradier Brokerage Inc. and details are provided at trading.efhutton.com.  This service is for clients that want to establish a self-directed account, not managed or using the strategies offered by EF Hutton as described in Item 4 and Item 5 of this brochure.  With this service, EF Hutton also provides a list of high-risk stocks that investors should take extra care to evaluate before investing.  Clients may open one or more trading accounts with Tradier Brokerage Inc. to manage on their own.   Clients utilizing this service will be solely responsible for all investment decisions made in the account and solely responsible for implementing all securities transactions in the account.  EF Hutton will not have access to or authority over, the client’s trading accounts. 

 

Although we do not receive a referral fee or other form of payment from Tradier Brokerage Inc., clients pay a monthly fee to EF Hutton for this service.  The fee covers all applicable trading, transaction and other brokerage related costs and expenses assessed by Tradier Brokerage Inc., excluding exchange fees and certain clearing fees that are charged separately – see trading.efhutton.com for details.  EF Hutton splits a portion of the monthly fee with Tradier Brokerage Inc.  Monthly fees are available on the website at efhutton.com.

 

Clients are not obligated or required to utilize the brokerage services of Tradier Brokerage Inc. and can select the broker/dealer or other custodian of their choosing.  EF Hutton has a right to acquire a minority ownership stake in the parent company of Tradier Brokerage Inc.  Therefore, EF Hutton’s recommendation that clients utilize the self-directed brokerage services of Tradier Brokerage Inc. is based partially on EF Hutton’s consideration of a partial ownership stake.  To mitigate this conflict of interest, Tradier Brokerage Inc. offers unlimited trading with no commission so that EF Hutton has no interest in promoting a volume of trading activity.    

Clients electing to open a trading account must execute all required brokerage new account paperwork and an agreement with Tradier Brokerage Inc. as detailed at trading.efhutton.comClients must also execute an agreement with EF Hutton and agree to pay EF Hutton a monthly charge for electronic trading using Tradier Brokerage Inc.

ITEM 11 – CODE OF ETHICS, PARTICIPATION IN CLIENT TRANSACTIONS AND PERSONAL TRADING

Code of Ethics Summary

As part of EF Hutton’s broader compliance policies and procedures, EF Hutton has established a Code of Ethics that will apply to all of its supervised persons. As a fiduciary, it is an investment adviser’s responsibility to provide fair and full disclosure of all material facts and to act solely in the best interest of each of my clients at all times. EF Hutton has a fiduciary duty to all clients. This fiduciary duty is considered the core underlying principle for EF Hutton’s Code of Ethics which also covers its Insider Trading and Personal Securities Transactions Policies and Procedures.  EF Hutton has the responsibility to make sure that the interests of all clients are placed ahead of EF Hutton’s or its supervised person’s own investment interest. Full disclosure of all material facts and potential conflicts of interest will be provided to clients prior to any services being conducted. EF Hutton strives to conduct business in an honest, ethical and fair manner and avoid all circumstances that might negatively affect or appear to affect my duty of complete loyalty to all clients. This disclosure is provided to give all clients a summary of EF Hutton’s Code of Ethics.

This section is intended to provide a summary description of the Code of Ethics of EF Hutton.  You may receive the EF Hutton Code of Ethics by requesting it from support@efhutton.com.

Affiliate and Employee Personal Securities Transactions Disclosure

EF Hutton or its supervised persons may buy or sell for their personal accounts, investment products identical to those recommended to clients.  This creates a potential conflict of interest. To help control for this conflict of interest, it is the express policy of EF Hutton that all persons associated in any manner with the firm must place the interests of our clients ahead of their own when implementing personal investments.  EF Hutton and its supervised persons shall not buy or sell securities for their personal account(s) where their decision is derived, in whole or in part, by information obtained as a result of his/her employment unless the information is also available to the investing public upon reasonable inquiry.  In addition, securities recommended by EF Hutton are widely held and publicly traded.  Finally, the firm has develop policies and procedures under our Code of Ethics requiring all access persons to report their personal securities holdings and positions to the firm for review and approval.

EF Hutton and its supervised persons do not recommend to clients securities in which EF Hutton or a related person has a material financial interest.  We do not act as principal to our clients; we do not act as general partner in a partnership in which we solicit client investments; and we do not act as an investment adviser to an investment company that we recommend to clients.

ITEM 12 – BROKERAGE PRACTICES

EF Hutton requires that you establish brokerage accounts with TD Ameritrade through their Institutional Platform.  TD Ameritrade, Inc. (“TD Ameritrade”) is a member of FINRA/SIPC. TD Ameritrade is an independent (and unaffiliated) SEC-registered broker-dealer and is utilized by EF Hutton to maintain custody of clients' assets and to effect trades for their accounts. 

At least annually, we will review alternative custodians in the marketplace for comparison to the currently used custodian, evaluating criteria such as overall expertise, cost competitiveness, and financial condition.  Quality of execution for custodians will be reviewed through trade journal evaluations.

EF Hutton is independently owned and operated and not affiliated with TD Ameritrade.

The primary factor in suggesting a broker/dealer or custodian is that the services of the recommended firm are provided in a cost-effective manner. While quality of execution at the best price is an important determinant, best execution does not necessarily mean lowest price and it is not the sole consideration. The trading process of any broker/dealer and money manager suggested by EF Hutton must be efficient, seamless, and straight-forward.  Overall custodial support services, trade correction services, and statement preparation are some of the other factors determined when suggesting a broker/dealer.

TD Ameritrade, Inc. provides us with access to their institutional trading and custody services, which are typically not available to retail investors. These services generally are available to independent investment advisors at no charge to them so long as the independent investment advisors maintain a minimum amount of assets with the custodian.

TD Ameritrade does not charge separately for custody but is compensated by account holders through commissions or other transaction-related fees for securities trades that are executed by recommended money managers through the custodian or that settle into a custodian account.

These benefits include, but are not necessarily limited to: receipt of duplicate client confirmations and bundled duplicate statements; access to a trading desk; access to block trading which provides the ability to aggregate securities transactions and allocate the appropriate shares to client accounts; the ability to have investment advisory fees deducted directly from client accounts; access to an electronic communications network for client order entry and account information; and access to mutual funds that generally require significantly higher minimum initial investments or are generally only available to institutional investors.

TD Ameritrade, Inc. also makes available to us other products and services that benefit our firm but may not benefit clients' accounts. Some of these other products and services assist us in managing and administering clients' accounts. These include software and other technology that provide access to client account data (such as trade confirmation and account statements); provide research, pricing information and other market data; facilitate payment of the firm’s fees from its clients' accounts; and assist with back-office functions; record keeping and client reporting. Many of these services generally may be used to service all or a substantial number of our accounts, including accounts not maintained at a recommended custodian. EF Hutton is also providing other services intended to help our firm manage and further develop our business enterprise. These services may include consulting, publications and conferences on practice management, information technology, business succession, regulatory compliance and marketing.

Directed Brokerage

Clients should understand that not all investment advisors require the use of a particular broker/dealer or custodian.  For compliance and operational efficiencies, EF Hutton has decided to require our clients to use broker/dealers and other qualified custodians determined by EF Hutton.  Some investment advisors allow their clients to select whichever broker/dealer the client decides.  However, EF Hutton believes use of a specific custodian broker/dealer provides long-term value.  It’s important to understand that by requiring clients to use a particular broker/dealer, EF Hutton may not achieve the most favorable execution of client transactions and the practice requiring the use of specific broker/dealers may cost clients more money than if the client used a different broker/dealer or custodian. 

Block Trading Policy

We may elect to purchase or sell the same securities for several clients at approximately the same time.  This process is referred to as aggregating orders, batch trading or block trading and is used by our firm when EF Hutton believes such action may prove advantageous to clients.  If and when we aggregate client orders, allocating securities among client accounts is done on a fair and equitable basis.  Typically, the process of aggregating client orders is done in order to achieve better execution, to negotiate more favorable commission rates or to allocate orders among clients on a more equitable basis in order to avoid differences in prices and transaction fees or other transaction costs that might be obtained when orders are placed independently. 

EF Hutton uses the average price method for transaction allocation.  Under this procedure, transactions will be averaged as to price and will be allocated among the firm’s clients in proportion to the purchase and sale orders placed for each client account on any given day. If and when we determine to aggregate client orders for the purchase or sale of securities, including securities in which EF Hutton or our associated persons may invest, we will do so in accordance with the parameters previously explained and our supervised persons’ personal accounts will not receive favorable or special treatment.  Neither we nor our associated persons receive any additional compensation as a result of block trades.

ITEM 13 – REVIEW OF ACCOUNTS

Account Reviews and Reviewers

EF Hutton’s software based investment advisor service assumes that a portfolio will not stay optimized over time and must be periodically rebalanced back to its original targets to maintain the intended risk level and asset allocations. EF Hutton reviews each client’s account when it is opened, and continuously monitors and periodically rebalances each client’s portfolio to seek to maintain a client’s targeted risk tolerance and optimal return for the client’s risk level. EF Hutton also conducts reviews when material changes may have occurred to a client’s portfolio or investment objectives.

On a quarterly basis, EF Hutton contacts each client to remind them to review and update the profile information they previously provided. EF Hutton also requests that clients reconfirm the same information on an annual basis. These notifications and confirmations include a link to the client’s current information and contact information.

Currently Hugh Rhodes, EF Hutton’s Director of Individual Investments and Investment Adviser Representative, is responsible for developing investment models, determining appropriate rebalancing procedures and leading all reviews.

Statements and Reports

EF Hutton sends periodic account summary emails to clients, which periodic reports include information regarding your portfolio, including performance, top movers (up and down) and performance versus a relevant index. The reports also include top news stories. EF Hutton also sends other periodic or event inspired reports based upon market or portfolio activity. In addition, when clients login to the EF Hutton service, they can view their portfolio performance, asset allocation, dividends, key statistics and portfolio ratios and geographic allocation data, among other information.

Additionally, clients will receive monthly or quarterly brokerage account statements and confirmations from TD Ameritrade.

ITEM 14 – CLIENT REFERRALS AND OTHER COMPENSATION

EF Hutton does not directly or indirectly compensate anybody for client referrals.

Other than the receipt of investment advisory fees detailed in Item 5 of this brochure, EF Hutton receives no other compensation in connection with our web-based, investment management services.

ITEM 15 – CUSTODY

Custody, as it applies to investment advisors, has been defined by regulators as having access or control over client funds and/or securities.  In other words, custody is not limited to physically holding client funds and securities.  If an investment adviser has the ability to access or control client funds or securities, the investment adviser is deemed to have custody and must ensure proper procedures are implemented. 

EF Hutton is deemed to have custody of client funds and securities whenever EF Hutton is given the authority to have fees deducted directly from client accounts.  However, this is the only form of custody EF Hutton will ever maintain.  It should be noted that authorization to trade in client accounts is not deemed by regulators to be custody.

We have established procedures to ensure all client funds and securities are held at a qualified custodian in a separate account for each client under that client’s name.  Clients or an independent representative of the client will direct, in writing, the establishment of all accounts and therefore are aware of the qualified custodian’s name, address and the manner in which the funds or securities are maintained.  Finally, account statements are delivered directly from the qualified custodian to each client, or the client’s independent representative, at least quarterly.  Clients should carefully review those statements and are urged to compare the statements against reports received from EF Hutton.  When clients have questions about their account statements, they should contact EF Hutton or the qualified custodian preparing the statement.

ITEM 16 – INVESTMENT DISCRETION

When providing our Interactive Web-Based Investment Management Services and our Direct-Client Asset Management Services, EF Hutton maintains trading authorization over your Account and will most often provide management services on a discretionary basis.  When discretionary authority is granted, we will have the authority to determine the type of securities, the amount of securities that can be bought or sold for your portfolio without obtaining your consent for each transaction. 

If agreed upon by our firm at the request of a client, a client may grant trading authorization on a non-discretionary basis.  In these cases, we will be required to contact you prior to implementing changes in your account.   Therefore, you will be contacted and required to accept or reject our investment recommendations including:

  • The security being recommended
  • The number of shares or units
  • Whether to buy or sell

Once the above factors are agreed upon, we will be responsible for making decisions regarding the timing of buying or selling an investment and the price at which the investment is bought or sold.  If your accounts are managed on a non-discretionary basis, you need to know that if we are not able to reach you or you are slow to respond to our request, it can have an adverse impact on the timing of trade implementations and we may not achieve the optimal trading price. 

You will have the ability to place reasonable restrictions on the types of investments that may be purchased in your Account.  You may also place reasonable limitations on the discretionary power granted to EF Hutton so long as the limitations are specifically set forth or included as an attachment to the client agreement.

ITEM 17 – VOTING CLIENT SECURITIES

EF Hutton does not vote proxies on behalf of clients.  We have determined that taking on the responsibilities for voting client securities does not add enough value to the services provided to you to justify the additional compliance and regulatory costs associated with voting client securities.  Therefore, it is your responsibility to vote all proxies for securities held in Account.

You will receive proxies directly from the qualified custodian or transfer agent; we will not provide you with the proxies.  You are encouraged to read through the information provided with the proxy-voting documents and make a determination based on the information provided.

ITEM 18 – FINANCIAL INFORMATION

This Item 18 is not applicable to this brochure.  EF Hutton does not require or solicit prepayment of more than $1,200 in fees per client, six months or more in advance.  Therefore, we are not required to include a balance sheet for the most recent fiscal year.  We are not subject to a financial condition that is reasonably likely to impair our ability to meet contractual commitments to clients.  Finally, EF Hutton has not been the subject of a bankruptcy petition at any time.

CUSTOMER PRIVACY POLICY NOTICE

Regulation S-P, Privacy of Consumer Financial Information, requires financial institutions, including EF Hutton to provide notice to current clients and prospective clients about their policies and practices concerning the collection and use of customer, non-public information.  This privacy policy notice is given to all prospective clients of EF Hutton upon entering into a contract with EF Hutton and annually thereafter.

Privacy Disclosure Statement.  A primary goal of EF Hutton is to protect the privacy of its clients.  EF Hutton does not sell the personal information of clients to anyone. To conduct regular business, EF Hutton may collect non-public personal information from clients.  This information is provided by clients to EF Hutton on applications and other forms provided by clients to EF Hutton as well as transactions with the firm, our affiliates, or others.

Information Safeguarding.  EF Hutton has implemented strict policies and procedures aimed at protecting the sensitive nature of client information.  EF Hutton restricts access to client information to only those members of EF Hutton that must provide products and services to clients in order to service client accounts.  EF Hutton has implemented physical, electronic, and procedural safeguards aimed at meeting EF Hutton’ duty to protect non-public client information.

Use and Disclosure of Customer Information to Provide Customer Service for Client Accounts To administer, manage and service customer accounts, process transactions and provide related services for client accounts, it is necessary for EF Hutton to provide access to Customer Information within the Firm and its affiliated companies and to non-affiliated companies such as other investment advisers, broker-dealers, trust companies, custodians and insurance companies.  EF Hutton may also provide Customer Information outside of the Firm as permitted by law, such as to government entities, consumer reporting agencies or other third parties in response to subpoenas.

Since EF Hutton shares nonpublic information solely to service client accounts, our firm does not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law.  However, we may also provide customer information outside of the firm as required by law, such as to government entities, consumer reporting agencies or other third parties in response to subpoenas.  In the event that our firm has a change to its customer privacy policy that would allow it to disclose non-public information not covered under applicable law, we will allow our clients the opportunity to opt out of such disclosure.

If you have any questions concerning EF Hutton’s customer privacy policy or concerns about your personal information please feel free to contact us at the phone number listed on the cover page of this brochure.

Form ADV is the uniform form used by investment advisers to register with both the Securities and Exchange Commission (SEC) and state securities authorities. The form consists of two parts. Part 1 requires information about the investment adviser’s business, ownership, clients, employees, business practices, affiliations, and any disciplinary events of the adviser or its employees. Part 1 is organized in a check-the-box, fill-in-the-blank format. The SEC reviews the information from this part of the form to process registrations and manage its regulatory and examination programs. Although designed for a regulatory purpose, investment adviser filings of Part 1 are available to the public on the SEC’s Investment Adviser Public Disclosure (IAPD) website at www.adviserinfo.sec.gov.

Part 2 requires investment advisers to prepare narrative brochures written in plain English that contain information such as the types of advisory services offered, the adviser’s fee schedule, disciplinary information, conflicts of interest, and the educational and business background of management and key advisory personnel of the adviser. The brochure is the primary disclosure document that investment advisers provide to their clients. When filed, the brochures are available to the public on the IAPD website.

 

Part 2A Appendix 1 of Form ADV: Wrap Fee Program Brochure

ITEM 1 – COVER PAGE

EF Hutton Investments LLC

One Main Street

Springfield, OH 45502

937-323-2000

www.efhutton.com/investments

Date of Disclosure Brochure:   July 2017

This wrap fee program brochure provides information about the qualifications and business practices of EF Hutton Investments LLC (also referred to we, us, and “EF Hutton”), a registered investment adviser.

Registration does not imply a certain level of skill or training.  If you have any questions about the contents of this brochure, please contact us at support@efhutton.com.    

The information in this brochure has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority.

Additional information about EF Hutton is available on the SEC’s website at www.adviserinfo.sec.gov.  You can view our firm’s information on this website by searching for EF Hutton Portfolio Solutions, LLC or our firm’s CRD number 285108.

ITEM 2 – MATERIAL CHANGES

Since filing the last annual amendment to this brochure in March 2017, we have moved the firm’s principal office location and place of business to Springfield, Ohio.  See the cover page of the brochure for the address and contact information.  Slight changes were made to Item 4 to emphasis services provided through our firm’s interactive website.  We also removed Dave Winn from Item 9 and replaced him with Hugh Rhodes as responsible for developing investment models, determining appropriate rebalancing procedures and leading all reviews.

 

We will ensure that you receive a summary of any material changes to this and subsequent disclosure brochures within 120 days after our firm’s fiscal year ends.  Our firm’s fiscal year ends on December 31, so you will receive the summary of material changes no later than April 30 each year.  At that time we will also offer or provide a copy of the most current disclosure brochure.  We may also provide other ongoing disclosure information about material changes as necessary.

ITEM 3 – TABLE OF CONTENTS

ITEM 2 – MATERIAL CHANGES 2

ITEM 3 – TABLE OF CONTENTS 3

ITEM 4 – SERVICES, FEES AND COMPENSATION 3

ITEM 5 – ACCOUNT REQUIREMENTS AND TYPES OF CLEINTS 10

ITEM 6 – PORTFOLIO MANAGER SELECTION AND EVALUATION 11

ITEM 7 – CLIENT INFORMATION PROVIDED TO PORTFOLIO MANAGERS 15

ITEM 8 – CLIENT CONTACT WITH PORTFOLIO MANAGERS 16

ITEM 9 – ADDITIONAL INFORMATION 16

CUSTOMER PRIVACY POLICY NOTICE 19

ITEM 4 – SERVICES, FEES AND COMPENSATION

EF Hutton Investments, LLC (“EF Hutton”) provides investment management services primarily through a web-based application to our clients.  We are also available to work with clients on an individual, in-person basis. 

Our investment management services are considered wrap-fee programs.  A wrap-fee program is defined as any advisory program under which a specified fee or fees not based directly upon transactions in a client’s account is charged for investment advisory services (which may include portfolio management or advice concerning the selection of other investment advisers) and the execution of client transactions.  Whenever a fee is charged to a client for services described in this brochure (whether wrap fee or non wrap fee), we will receive portion of the fee charged.

Description of Interactive Web-Based Investment Management Services

EF Hutton offers investment management services by providing you continuous and ongoing supervision over your specified accounts.  Our services are provided through an interactive website using computer-based models and applications to collect your information and provide investment advice.

Services are provided through our website at www.efhutton.com/investments; our mobile apps and through co-branded pages and widgets hosted by third-party vendors that have contracted to offered our platform (collectively the “Website”).  EF Hutton’s online platform allows clients to:

• View financial accounts in an easily accessible interface;

• Monitor and analyze investment positions;

• Receive real-time and delayed market data and news;

• Determine portfolio performance and other analytics;

• Create and modify mock portfolios and back-test investment ideas;

• Receive recommendations and information about investments; and,

EF Hutton’s technology enables you to transfer their account data securely onto EF Hutton’s secure user platform. You then have the ability to see their entire consolidated portfolio in one place, regardless of which account or how many accounts they have or what firms at which those accounts are held.

To determine your financial situation and investment objectives, we will need to obtain certain information from you through our interactive website.  You will be responsible for providing any changes to your financial situation or investment objectives by updating your responses on our interactive website.   

Investment recommendations and decisions are made based solely upon algorithms that determine your needs based on existing investment position, risk tolerance, investment goals and transaction history (as provided by you via the EF Hutton website).

Each individualized portfolio is designed to be consistent with your investment objectives and risk tolerances. We create an investment plan and manage your portfolio by seeking to identify: 1) the optimal asset classes in which to invest, 2) efficient investments to represent each of those asset classes, 3) the ideal mix of asset classes based on your specific risk tolerance, 4) the most appropriate time to rebalance your portfolio to maintain intended risk tolerance and optimal return for your risk level.  EF Hutton will tailor its allocation and investment management strategies based on your risk tolerance. 

EF Hutton primarily utilizes mutual funds and Exchange Traded Funds (ETFs) for client portfolios.  We may also use individual stock and bond positions for tax loss harvesting purposes and investment style. Please see Item 8 - Methods of Analysis, Investment Strategies and Risk of Loss for a description of the types of investments we provide advice on and strategies we use. EF Hutton’s online also allows you to:

• View financial accounts in an easily accessible interface;

• Monitor and analyze investment positions;

• Receive real-time and delayed market data and news;

• Determine portfolio performance and other analytics;

• Create and modify mock portfolios and back-test investment ideas; and

• Receive recommendations and information about investments.

You must appoint our firm as your investment adviser of record on specified accounts (collectively, the “Account”).  The Account consists only of separate account(s) held by qualified custodian(s) under your name by TD Ameritrade, Inc. which serves as qualified custodian and broker/dealer.  As qualified custodian, TD Ameritrade, Inc., maintains physical custody of all funds and securities of the Account, and you retain all rights of ownership (e.g., right to withdraw securities or cash, exercise or delegate proxy voting and receive transaction confirmations) of the Account. 

It is important that you understand that we manage investments for other clients and may give them advice or take actions for them or for our personal accounts that is different from the advice we provide to you or actions taken for you.  We are not obligated to buy, sell or recommend to you any security or other investment that we may buy, sell or recommend for any other clients or for our own accounts.

Conflicts may arise in the allocation of investment opportunities among accounts that we manage.  We strive to allocate investment opportunities believed to be appropriate for your account(s) and other accounts advised by our firm among such accounts equitably and consistent with the best interests of all accounts involved.  However, there can be no assurance that a particular investment opportunity that comes to our attention will be allocated in any particular manner.  If we obtain material, non-public information about a security or its issuer that we may not lawfully use or disclose, we have absolutely no obligation to disclose the information to any client or use it for any client’s benefit.

Standard vs. Premium Services

EF Hutton offers standard Web-Based Investment Services that are available to any investor for a lower cost compared to the Premium service which is available to investors seeking a wider range of investment choices and a more complex set of portfolio components.  Such portfolios are designed to focus on   more specialized investment goals. 

Administrative Service Providers

EF Hutton has contracted with unaffiliated, third-party service providers to utilize their software technology.  The service providers are not investment advisers or broker/dealers. These service providers support our firm by providing such things as a customized functionality, website administration, risk questionnaire, portfolio implementation and rebalancing.  They also provide assistance with fee calculation, billing, and provide other functions related to the administrative tasks of managing client accounts.  Due to this arrangement, service providers will have access to EF Hutton client accounts and client information, but will not serve as an investment advisor to EF Hutton clients.  Fees we pay to service providers for their administrative and platform services come from the management fees we charge to client accounts.  You will not pay a separate or additional fee directly to the service provider.  Please refer below for details about the fees charged for our services.

Direct-Client Asset Management Services

In addition to our internet-based service, we work with a select number of clients on a traditional, one-on-one, in-person basis by providing continuous and ongoing supervision over your specified accounts. Through this service we will typically utilize our web-based platform to manage your account and provide services.

For the one-on-one services, you must appoint EF Hutton as your investment adviser of record on specified accounts (collectively, the “Account”). The Account consists only of separate account(s) held under your name by TD Ameritrade, which serves as custodian and broker/dealer for execution of certain transactions.

The Account is managed by us based on your financial situation, investment objectives and risk tolerance.  We actively monitor the Account and provide advice regarding buying, selling, reinvesting, or holding securities, cash or other investments of the Account.

We will need to obtain certain information from you to determine your financial situation and investment objectives. You will be responsible for notifying us of any updates regarding your financial situation, risk tolerance or investment objective and whether you wish to impose or modify existing investment restrictions; however we will contact you at least annually to discuss any changes or updates regarding your financial situation, risk tolerance or investment objectives.  We are always reasonably available to consult with you about the status of your Account.  You have the ability to impose reasonable restrictions on the management of your accounts, including the ability to instruct us not to purchase certain securities.

It is important that you understand that we manage investments for other clients and may give them advice or take actions for them or for our personal accounts that is different from the advice we provide to you or actions taken for you.  We are not obligated to buy, sell or recommend to you any security or other investment that we may buy, sell or recommend for any other clients or for our own accounts.

Conflicts may arise in the allocation of investment opportunities among accounts that we manage.  We strive to allocate investment opportunities believed to be appropriate for your account(s) and other accounts advised by our firm among such accounts equitably and consistent with the best interests of all accounts involved.  However, there can be no assurance that a particular investment opportunity that comes to our attention will be allocated in any particular manner.  If we obtain material, non-public information about a security or its issuer that we may not lawfully use or disclose, we have absolutely no obligation to disclose the information to any client or use it for any client’s benefit.

Brokerage Practices

EF Hutton requires that you establish brokerage accounts with TD Ameritrade through their Institutional Platform.  TD Ameritrade, Inc. (“TD Ameritrade”) is a member of FINRA/SIPC. TD Ameritrade is an independent (and unaffiliated) SEC-registered broker-dealer and is utilized by EF Hutton to maintain custody of clients' assets and to effect trades for their accounts. 

At least annually, we will review alternative custodians in the marketplace for comparison to the currently used custodian, evaluating criteria such as overall expertise, cost competitiveness, and financial condition.  Quality of execution for custodians will be reviewed through trade journal evaluations.

EF Hutton is independently owned and operated and not affiliated with TD Ameritrade.

The primary factor in suggesting a broker/dealer or custodian is that the services of the recommended firm are provided in a cost-effective manner. While quality of execution at the best price is an important determinant, best execution does not necessarily mean lowest price and it is not the sole consideration. The trading process of any broker/dealer and money manager suggested by EF Hutton must be efficient, seamless, and straight-forward.  Overall custodial support services, trade correction services, and statement preparation are some of the other factors determined when suggesting a broker/dealer.

TD Ameritrade, Inc. provides us with access to their institutional trading and custody services, which are typically not available to retail investors. These services generally are available to independent investment advisors at no charge to them so long as the independent investment advisors maintain a minimum amount of assets with the custodian.

TD Ameritrade does not charge separately for custody but is compensated by account holders through commissions or other transaction-related fees for securities trades that are executed by recommended money managers through the custodian or that settle into a custodian account.

These benefits include, but are not necessarily limited to: receipt of duplicate client confirmations and bundled duplicate statements; access to a trading desk; access to block trading which provides the ability to aggregate securities transactions and allocate the appropriate shares to client accounts; the ability to have investment advisory fees deducted directly from client accounts; access to an electronic communications network for client order entry and account information; and access to mutual funds that generally require significantly higher minimum initial investments or are generally only available to institutional investors.

TD Ameritrade, Inc. also makes available to us other products and services that benefit our firm but may not benefit clients' accounts. Some of these other products and services assist us in managing and administering clients' accounts. These include software and other technology that provide access to client account data (such as trade confirmation and account statements); provide research, pricing information and other market data; facilitate payment of the firm’s fees from its clients' accounts; and assist with back-office functions; record keeping and client reporting. Many of these services generally may be used to service all or a substantial number of our accounts, including accounts not maintained at a recommended custodian. EF Hutton is also providing other services intended to help our firm manage and further develop our business enterprise. These services may include consulting, publications and conferences on practice management, information technology, business succession, regulatory compliance and marketing.

Directed Brokerage

Clients should understand that not all investment advisors require the use of a particular broker/dealer or custodian.  For compliance and operational efficiencies, EF Hutton has decided to require our clients to use broker/dealers and other qualified custodians determined by EF Hutton.  Some investment advisors allow their clients to select whichever broker/dealer the client decides.  However, EF Hutton believes use of a specific custodian broker/dealer provides long-term value.  It’s important to understand that by requiring clients to use a particular broker/dealer, EF Hutton may not achieve the most favorable execution of client transactions and the practice requiring the use of specific broker/dealers may cost clients more money than if the client used a different broker/dealer or custodian. 

Block Trading Policy

We may elect to purchase or sell the same securities for several clients at approximately the same time.  This process is referred to as aggregating orders, batch trading or block trading and is used by our firm when EF Hutton believes such action may prove advantageous to clients.  If and when we aggregate client orders, allocating securities among client accounts is done on a fair and equitable basis.  Typically, the process of aggregating client orders is done in order to achieve better execution, to negotiate more favorable commission rates or to allocate orders among clients on a more equitable basis in order to avoid differences in prices and transaction fees or other transaction costs that might be obtained when orders are placed independently. 

EF Hutton uses the average price method for transaction allocation.  Under this procedure, transactions will be averaged as to price and will be allocated among the firm’s clients in proportion to the purchase and sale orders placed for each client account on any given day. If and when we determine to aggregate client orders for the purchase or sale of securities, including securities in which EF Hutton or our associated persons may invest, we will do so in accordance with the parameters previously explained and our supervised persons’ personal accounts will not receive favorable or special treatment.  Neither we nor our associated persons receive any additional compensation as a result of block trades.

Investment Discretion

When providing our Interactive Web-Based Investment Management Services and our Direct-Client Asset Management Services, EF Hutton maintains trading authorization over your Account and will most often provide management services on a discretionary basis.  When discretionary authority is granted, we will have the authority to determine the type of securities, the amount of securities that can be bought or sold for your portfolio without obtaining your consent for each transaction. 

If agreed upon by our firm at the request of a client, a client may grant trading authorization on a non-discretionary basis.  In these cases, we will be required to contact you prior to implementing changes in your account.   Therefore, you will be contacted and required to accept or reject our investment recommendations including:

  • The security being recommended
  • The number of shares or units
  • Whether to buy or sell

Once the above factors are agreed upon, we will be responsible for making decisions regarding the timing of buying or selling an investment and the price at which the investment is bought or sold.  If your accounts are managed on a non-discretionary basis, you need to know that if we are not able to reach you or you are slow to respond to our request, it can have an adverse impact on the timing of trade implementations and we may not achieve the optimal trading price. 

You will have the ability to place reasonable restrictions on the types of investments that may be purchased in your Account.  You may also place reasonable limitations on the discretionary power granted to EF Hutton so long as the limitations are specifically set forth or included as an attachment to the client agreement.

Fees and Compensation

Fees charged for our services are charged based on a percentage of assets under management, billed in arrears (at the end of the billing period) on a quarterly monthly basis and calculated based on the fair market value of your accounts as of the last business day of the current billing period. 

Fees are prorated (based on the number of days service is provided during the initial billing period) for your account opened at any time other than the beginning of the billing period.  If asset management services are commenced in the middle of the billing period, then the prorated fee for that billing period will be billed in arrears at the end of that billing period.

Fees are charged in accordance with the following fee schedule which covers the compensation earned by our firm and any Sub-Advisers selected to assist with the management of your accounts.  In addition to the investment advisory services, fees collected also cover all brokerage transaction (i.e. trade ticket) expenses and fees assessed by TD Ameritrade. 

Criteria

Type

Account

Balance

(based on average balance)

Fees

Interactive Web-Based Investment Management Services

Standard

Fully-Self Directed

Automated Investment Management

  • No assigned advisor representative
  • E-mail statement
  • Can open account with a little as $200
  • Advisor Representative Web Consultation for:

o Financial Planning Advice

o Review of Investment Strategies

o No individualized advice

Less than $25,000

40 basis points per year

$3.00 account opening fee

$3.00 per month

$25,000 to $100,000

30 basis points per year

No account opening fee

No monthly charge

Online chat Consult with Advisor available

Over $100,000

25 Basis points per year

No account opening fee

No monthly charge

Online chat consult with Advisor available

     

Premium

Self-Directed With Advisor Assistance

Automated Investment Management

  • Wider range of portfolio choices and investment alternatives
  • Assigned advisor representative

o Available for online web consult

  • E-mail Statement
  • Requires $250,000 minimum to open account

Minimum $250,000

No account opening fee

No monthly fee

50 basis points

Full Client Asset Management Services

Full Service – Dedicated Advisor

EF Hutton Full Service Advisor Representative

For Client’s with more complex investment needs requiring a dedicated personal advisor

  • Dedicated EF Hutton investment advisor representative
  • Investment recommendations
  • Wider set of investment choices including alternatives and Reg. D investments
  • Use of automated / personal service
  • Quarterly performance review
  • Interaction with Client’s Tax Advisor
  • E-mail Statement
  • Requires $500,000 minimum to open account

  

Minimum

$500,000

No account opening fee.

$100 quarterly fee.

-and-

7 basis points (0.07%) per month for a total of 84 basis points (0.84%) annually.

For Investment Accounts, each month the monthly portion of the annual fee based on average daily balance will be charged.

Your exact fee schedule will be detailed in your agreement for services.  Fee schedules are subject to change 60 days after written notice, which may be given via electronic mail. Our fee schedule is fixed and non-negotiable. 

EF Hutton believes that its annual fee is reasonable in relation to:  (1) services provided and (2) the fees charged by other investment advisers offering similar services/programs.  However, our annual investment advisory fee may be higher than that charged by other investment advisers offering similar services/programs.  In addition to our compensation, you may also incur charges imposed at the mutual fund level (e.g., advisory fees and other fund expenses).

How Fees are Collected

Our investment advisory fees will be deducted from your account and paid directly to our firm by TD Ameritrade.  You must designate EF Hutton as your investment adviser on the accounts you’d like EF Hutton to manage.  EF Hutton will be granted limited power-of-attorney on the account to implement trades within the account and (when agreed to by the client) deduct the EF Hutton advisory fees from the account.  TD Ameritrade will send client statements, at least quarterly, showing all disbursements for the account including the amount of the advisory fee deducted directly from the account. 

You should review your account statements received from the qualified custodian(s) and verify that appropriate investment advisory fees are being deducted.  TD Ameritrade will not verify the accuracy of the investment advisory fees deducted.  It is EF Hutton and client’s responsibility to verify the accuracy of EF Hutton’s fee calculation.

Other Fees and Expenses

In addition to the fee charged by our firm which covers our investment advisory services and the transaction/execution services provided by TD Ameritrade, you may incur certain charges imposed by third parties other than EF Hutton in connection with investments made through your account including, but not limited to surrender charges, internal mutual fund expenses IRA and qualified retirement plan fees and non-transaction/execution fees and charges imposed by TD Ameritrade.  Management fees charged by EF Hutton are separate and distinct from the fees and expenses charged by mutual funds that are held in your account.  A description of these fees and expenses are available in each mutual fund prospectus.  We do not receive any portion of such fees or expenses.

We do not accept or receive compensation based on the sale of securities or other investment products such as asset-based sales charges or service fees from the sale of mutual funds, or as a placement agent for any type of securities.

Termination

A client may terminate its advisory relationship at any time upon no more than 30 days prior notice. Upon termination of any account, any earned, unpaid fees will be due and payable. Such fees are prorated based on the number of days left in the billing period

There will be no termination fee; however, client accounts may be subject to a modest cost of reimbursement of fees related to transferring client's account. Such fees would be charged by the client's account custodian and EF Hutton will not receive any portion of such fee.

ITEM 5 – ACCOUNT REQUIREMENTS AND TYPES OF CLEINTS

EF Hutton provides investment management services to natural person, individual clients and their family accounts.

Our Direct-Client Asset Management Services are available only to high-net worth clients which we define as clients with at least $1,000,000 of investable assets; or income for the last two years that is greater than $200,000 individually or $300,000 with a spouse.

You are required to execute a written agreement with EF Hutton specifying the particular advisory services in order to establish a client arrangement with EF Hutton.

Minimum Investment Amounts Required and Other Conditions

EF Hutton requires a minimum of $200 in order to open an account through our Website.   

Investors evaluating EF Hutton’s web based investment management service should be aware that EF Hutton’s relationship with clients is likely to be different from the “traditional” investment advisor relationship in several aspects:

1. EF Hutton’s internet advisory service is a software based investment advisor which means each client must acknowledge her ability and willingness to conduct her relationship with EF Hutton on an electronic basis. Under the terms of our agreement, each client agrees to receive all account information and account documents (including this Brochure), and any updates or changes to same, through their access to our website and EF Hutton’s electronic communications. Unless noted otherwise on the website or within this Brochure, EF Hutton’s advisory service, the signature for our client agreement, and all documentation related to the advisory services are managed electronically. EF Hutton does make individual representatives available to discuss servicing matters with clients.

2. To provide its advisory services and tailor its investment decisions to each client’s specific needs, EF Hutton collects information from each client, including specific information about their investing profile such as financial situation, investment experience, and investment objectives. EF Hutton maintains this information in strict confidence subject to our Privacy Policy. When customizing our investment solutions, EF Hutton relies upon the information received from a client.  Although EF Hutton contacts its clients periodically as described further in Item 13 below, a client must promptly notify EF Hutton of any change in her financial situation or investment objectives that might require a review or revision of her portfolio.

3. The software based financial advisor service includes preselected ETFs and mutual funds for each asset class within the plan recommended to a client. EF Hutton does not allow clients to select their own investments because each mutual fund and asset class is considered to be part of the overall investment plan. Investors with overly restrictive investment restrictions may not be permitted to become clients.

ITEM 6 – PORTFOLIO MANAGER SELECTION AND EVALUATION

For certain investment strategies, we utilize unaffiliated, third-party investment advisers serving as “Sub-Advisers” to manage all or a portion of your assets.  There could be a conflict of interest in that we could prefer our internal strategies when selecting portfolio strategies or rather than selecting strategists developed by Sub-Advisers.  Currently, we use a combination of strategies developed by Sub-Advisers and strategies developed internally by our firm. 

EF Hutton is ultimately responsible for Sub-Adviser due diligence along with portfolio monitoring.  Therefore, we may recommend Sub-Advisers to you that we have screened and qualified.  EF Hutton evaluates all such Sub-Advisers pursuant to a predetermined set of criteria prior to accepting any Sub-Adviser onto the EF Hutton network. EF Hutton will review the investment adviser’s assets under management, investment experience, disciplinary history, past performance, and numerous other factors. Further the investment adviser must agree to share a percentage of any investment advisory fees from the clients with EF Hutton. Clients are encouraged to conduct their own research into any recommended investment adviser, including, but not limited to consulting with independent tax, legal or financial advisers as necessary. Clients are encouraged to consider their individual circumstances, risk tolerance and needs prior to following any EF Hutton generated recommendation.

Any Sub-Adviser selected by EF Hutton shall be registered or exempt from registration in your home state. The recommendation of a Sub-Adviser shall be made on a non-discretionary basis.  The decision to use a Sub-Adviser is always based on each client’s individual needs. A complete description of the third-party investment advisor’s services acting as Sub-Adviser, fee schedules and account minimums will be disclosed in the third-party investment advisor’s Form ADV Disclosure Brochure which will be provided to clients at the time an account is established with the Sub-Adviser. 

We are always available to answer questions you may have regarding the portion of your account managed by the Sub-Adviser and act as the communication conduit between you and the Sub-Adviser.  Sub-Advisers will generally take discretionary authority to determine the securities to be purchased and sold for your accounts. 

Types of Advisory Services Offered

Currently, the only types of investment advisory services offered by our firm are those described within this brochure.   Refer to Item 4 of this brochure for details about our services. 

Tailor Advisory Services to Individual Needs of Clients

Investment recommendations are generated from an algorithm that incorporates each Clients’ existing investment portfolio, risk profile and investment objectives as provided to EF Hutton by the Client. EF Hutton utilizes the Client’s existing portfolio information to make recommendations for investments in similar securities based on a limited number of factors (for example, past performance of the securities, associated fees, etc.). Such recommendations are based solely on the on the information and data filed by the issuers of securities with various government regulators or made directly available to EF Hutton by such issuers, or indirectly through other third party sources. Although EF Hutton, through its software, evaluates such information and data, EF Hutton is not in a position to confirm the completeness, genuineness or accuracy of such information and data, and in some cases complete and accurate information is not readily available.

Our services are always provided based on the individual needs of each client.  This means, for example, that you are given the ability to impose restrictions on the accounts we manage for you, including specific investment selections and sectors.  We determine client information through questionnaires and fact-finding information to determine the client’s investment objectives and suitability information.

We manage client accounts in accordance with one or more investment models.  When client accounts are managed using models, investment selections are based on the underlying model and we do not develop customized (or individualized) portfolio holdings for each client.  However, the determination to use a particular model or models is always based on each client’s individual investment goals, objectives and mandates.

Wrap Fee Programs

Currently, the only investment advisory services offered are through our wrap-fee program.  Refer to Item 4 for an explanation of what is a wrap-fee program and the services provided by our firm.

Performance Based Fees and Side-by-Side Management

Not applicable to EF Hutton. EF Hutton does not charge performance-based fees.

Methods of Analysis and Investment Strategies

As described previously in this brochure, EF Hutton formulates and provides Clients with investment advice via its Website. In all cases, including those where the services are made available through a co-branded partner website, EF Hutton’s web-based platform is powering the investment advisory services and hosting Client data.

As it pertains to Securities and Brokerage Recommendations, EF Hutton’s software platform generates recommendations on the basis of an analysis of investment data, trading patterns and your existing portfolio investments.

When making Securities recommendations, EF Hutton’s algorithms seek to identify better performing and/or lower cost (e.g. lower fees, loads and/or expenses) investment options within the same or a similar category (e.g. tracks the same index, has similar holdings or is within the same category of investment) of investment that your currently hold in your portfolio.

Unlike other types of recommendations generated by EF Hutton, EF Hutton considers your personal characteristics and risk tolerance when assessing the suitability of various Sub-Advisers on our platform. EF Hutton analyzes various information from Sub-Advisers on our platform and then makes a recommendation if EF Hutton deems a Sub-Adviser to be generally suitable for a client.

EF Hutton only recommends Sub-Advisers that utilize the EF Hutton platform. As such EF Hutton recommends Sub-Advisers from a limited group. Clients should be aware that similar investment advisers may be available and Clients are encouraged to compare any investment advisers recommended by EF Hutton to similar investment advisers that do not utilize the EF Hutton platform.

Risk of Loss

Clients are strongly encouraged to conduct their own analysis of, and investigation into, the methodologies employed by EF Hutton in making its recommendations. The fact that a recommendation is generated by EF Hutton’s investment software cannot be interpreted as a guarantee of future performance. Investing in securities involves risk of loss that Clients should be prepared to bear.

EF Hutton conducts its analyses primarily using detailed historical information. As with any investment, past performance is no guarantee of its future success.

EF Hutton relies on third parties for the provision of market statistics, fund details, performance, and related information and although these parties are generally reliable and reputable, there may be inaccuracies or discrepancies in the information that is beyond EF Hutton’s control.

EF Hutton bases its recommendations on information provided by Clients and relies on the Client to provide accurate information. If the Client provides inaccurate information, or does not verify that EF Hutton’s portfolio tracker has accurately captured the Client’s portfolio holdings when syncing with the Client’s account, this will impact the quality and relevance of EF Hutton’s recommendations. As such, Clients are urged to verify any account holdings synced to the user platform for accuracy, as recommendations are based upon such information.

EF Hutton provides recommendations to Clients based on investment software that utilizes various quantitative and qualitative models. Such computer generated recommendations, like all investment recommendations, may be subject to system error. No guarantee or representation is made that the investment recommendations will be successful. EF Hutton may simply fail to identify favorable investment opportunities or to evaluate those investments recommendations accurately that it does make to Clients. Further, as market dynamics (for example, due to changed market conditions and participants) shift over time, a previously highly successful model may become outdated or inaccurate, perhaps without the computer software system recognizing the change before further recommendations are made. As such, Clients are urged to verify any recommendations generated by the EF Hutton software platform with their own legal, financial, tax and economic advisors and to conduct their own due diligence on recommended Securities before following any recommendation. Additionally, there are certain risks associated with utilizing automated investment tools like the one offered by EF Hutton.

  • Our investment tool is programmed to use certain economic assumptions that may not be updated in a timely manner or shifts in the market.
  • The output of the automated investment tool depends upon the accuracy of the information inputted into the tool.
  • There may be certain factors or variables which have not been included in the automated investment tool.  To the extent some questions are over-generalized, ambiguous or designed to fit a pre-determined option, the output may not be right for all investor’s needs or goals.
  • By only using the automated investment service, investors could lose out on the value of human judgment and oversight.  Investors may lose out on these qualities when interacting with only a computer program.

There is no guarantee that a mutual fund or ETF will achieve its objective. The Securities share price fluctuates and investors can lose money by investing in the Securities. Securities may differ from each other in terms of investment style, objectives, management, geographical markets, holdings and numerous other factors. For a full description of the risks inherent in any specific Security, Clients should read the prospectus of the particular Security recommended. EF Hutton only recommends investment advisers that utilize the EF Hutton platform. As such EF Hutton recommends investment advisers from a limited group. Clients should be aware that similar investment advisers may be available and Clients are encouraged to compare any investment advisers recommended by EF Hutton to similar investment advisers that do not utilize the EF Hutton platform.

In making investment recommendations there are a number of factors that EF Hutton does not consider, including but not limited to:

Tax Implications: With the exception of its tax loss harvesting recommendations, EF Hutton does not consider the Client specific tax implications with respect to the recommendations that it makes. In making recommendations to Clients, EF Hutton does not consider the tax characteristics of the individual Client, holding periods of securities, or other similar factors. Each Client must rely on its own examination, and that of its financial, tax and legal advisors in evaluating the merits and risks involved in selecting the Security. Clients should not construe the contents of the Website or any recommendation made by EF Hutton as tax advice. Each Client must rely upon its own representatives as to tax and other aspects of an investment in Securities and as to its suitability for such Client.

Frequency of Trading: With the exception of recommendations specifically focused on the frequency of the Client’s trading (e.g., a recommendation that the Client trade less frequently), EF Hutton does not consider the frequency of a Client’s trading when the proprietary software generates a recommendation. If a Client’s investment approach involves a high level of trading and turnover of the Client’s investments such approach may generate tax implications (such as short-term capital gains) and other similar consequences that could negatively impact the value of the Client’s investment portfolio.

Certain Characteristics of Existing Portfolios: EF Hutton does not consider the restrictions that may be inherent in a Client’s existing investment accounts when making investment recommendations. For example, when making a recommendation to sell a security and replace it with a similar security, EF Hutton does not consider (but attempts to disclose) whether the existing security would be subjected to an early redemption fee if the Client sells such security.

Material Risks of Investing in Mutual Funds and ETF’s Exchange Traded Funds:  An ETF generally is an investment company, unit investment trust or a portfolio of securities deposited with a depository in exchange for depository receipts. The portfolios of ETFs generally consist of common stocks that closely track the performance and dividend yield of specific securities indices, either broad market, sector or international. ETFs provide investors the opportunity to buy or sell throughout the day an entire portfolio of stocks in a single security. Although index mutual funds are similar, their shares are generally issued and redeemed only once per day at market close. Investment in an ETF involves payment of such company’s pro rata share of administrative fees charged by such company, in addition to those paid by a Client. 

Mutual Funds. An investment in mutual funds could lose money over short or even long periods. Clients should expect the fund’s share price and total return to fluctuate within a wide range, like the fluctuations of the overall stock market. A mutual fund’s performance could be impacted by a number of factors including but not limited to: Investment style risk, the chance that returns from small and mid capitalization growth stocks will trail returns from the overall stock market. Historically, small and mid-cap stocks have been more volatile in price than the large-cap stocks that dominate the overall market, and they often perform quite differently. Small and mid-size companies tend to have greater stock volatility because, among other things, these companies are more sensitive to changing economic conditions. Stock market risk, the chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices. Manager risk, the chance that a mutual fund manager may make a poor security selection or focus on securities in a particular sector, category, or group of companies will cause the mutual fund to underperform relevant benchmarks or other funds with a similar investment objective.

Voting Client Securities

EF Hutton does not vote proxies on behalf of clients.  We have determined that taking on the responsibilities for voting client securities does not add enough value to the services provided to you to justify the additional compliance and regulatory costs associated with voting client securities.  Therefore, it is your responsibility to vote all proxies for securities held in Account.

You will receive proxies directly from the qualified custodian or transfer agent; we will not provide you with the proxies.  You are encouraged to read through the information provided with the proxy-voting documents and make a determination based on the information provided.

ITEM 7 – CLIENT INFORMATION PROVIDED TO PORTFOLIO MANAGERS

EF Hutton is responsible for gathering information from clients. We will correspond with clients to gather information needed relative to their investment objectives and needs in order to provide management services.  Clients need to contact our firm whenever there are changes to their financial situation that will impact or materially influence the way EF Hutton manages accounts.  It is important for clients to reply and correspond in a timely manner with EF Hutton in order to provide updated financial information so that EF Hutton can make appropriate investment decisions.

Sub-Advisers will have access to your personal identifiable information, investment profile, objectives and other important financial information.  We may have a brief discussion with Sub-Advisers about the client in terms of risk, age and why their firm was chosen.  Sub-Advisers very rarely, and typically never, get to meet the client.  It is the responsibility of EF Hutton to assess each client’s risk tolerance, time frame, investment objectives, portfolio size and prior investment experience to decide if separate accounts would be an effective solution. 

ITEM 8 – CLIENT CONTACT WITH PORTFOLIO MANAGERS

There are no restrictions placed on clients’ ability to contact and consult directly with EF Hutton.  It is the policy of EF Hutton to provide an “open channel” of communication between EF Hutton and their clients.  Clients are encouraged to contact our firm whenever they have questions about the management of their account. 

When a Sub-Adviser is selected for a client, the client does not typically communicate or interact with the Sub-Adviser.  Instead, EF Hutton will serve as communication conduit between the Sub-Adviser and the client if needed. 

ITEM 9 – ADDITIONAL INFORMATION

Disciplinary Information

Neither EF Hutton nor any of its employees have had any administrative proceedings before the SEC, any other federal regulatory agency, any state regulatory agency, or any foreign financial regulatory authority. Neither EF Hutton, nor any of its employees, has had any proceedings before a self-regulatory organization.

Other Financial Industry Activities and Affiliations

EF Hutton is not and does not have a related person that is a broker/dealer, municipal securities dealer, government securities dealer or broker, an investment company or other pooled investment vehicle (including a mutual fund, closed-end investment company, unit investment trust, private investment company or "hedge fund," and offshore fund), a futures commission merchant, commodity pool operator, or commodity trading advisor, a banking or thrift institution, an accountant or accounting firm, a lawyer or law firm, an insurance company or agency, a pension consultant, a real estate broker or dealer, and a sponsor or syndicator of limited partnerships.

As described in Item 4 – Advisory Business, Item 5 – Fees and Compensation, and Item 8 - Methods of Analysis, Investment Strategies and Risk of Loss we recommend independent, third-party investment advisors to serve as Sub-Advisers. 

We do not receive a referral fee or solicitor fee from third-party Sub-Advisers we recommend from clients.  The only compensation we receive is the management fee we charge directly to our clients.   This policy helps us avoid selecting Sub-Advisers based on our economic interests.  Instead, we select Sub-Advisers we believe are most appropriate for our clients absent additional economic benefits we could receive from a money manager.  We will compensate Sub-Advisers from our management fees as described in Item 5.

No Commission Trading Service

EF Hutton enables its clients to trade stocks and options with no commission payment.  EF Hutton offers this service for a single monthly fee in association with a strategic partner whose subsidiary, Tradier Brokerage Inc., is a FINRA-registered broker-dealer.  This trading service is intended to be a convenient method for clients to conduct their personal trading and investing activities through the EF Hutton website which can be accessed online or through any web-enabled mobile device. 

All trade execution is through Tradier Brokerage Inc. and details are provided at trading.efhutton.com.  This service is for clients that want to establish a self-directed account, not managed or using the strategies offered by EF Hutton as described in Item 4 and Item 5 of this brochure.  With this service, EF Hutton also provides a list of high-risk stocks that investors should take extra care to evaluate before investing.  Clients may open one or more trading accounts with Tradier Brokerage Inc. to manage on their own.   Clients utilizing this service will be solely responsible for all investment decisions made in the account and solely responsible for implementing all securities transactions in the account.  EF Hutton will not have access to or authority over, the client’s trading accounts. 

 

Although we do not receive a referral fee or other form of payment from Tradier Brokerage Inc., clients pay a monthly fee to EF Hutton for this service.  The fee covers all applicable trading, transaction and other brokerage related costs and expenses assessed by Tradier Brokerage Inc., excluding exchange fees and certain clearing fees that are charged separately – see trading.efhutton.com for details.  EF Hutton splits a portion of the monthly fee with Tradier Brokerage Inc.  Monthly fees are available on the website at efhutton.com.

 

Clients are not obligated or required to utilize the brokerage services of Tradier Brokerage Inc. and can select the broker/dealer or other custodian of their choosing.  EF Hutton has a right to acquire a minority ownership stake in the parent company of Tradier Brokerage Inc.  Therefore, EF Hutton’s recommendation that clients utilize the self-directed brokerage services of Tradier Brokerage Inc. is based partially on EF Hutton’s consideration of a partial ownership stake.  To mitigate this conflict of interest, Tradier Brokerage Inc. offers unlimited trading with no commission so that EF Hutton has no interest in promoting a volume of trading activity.    

Clients electing to open a trading account must execute all required brokerage new account paperwork and an agreement with Tradier Brokerage Inc. as detailed at trading.efhutton.comClients must also execute an agreement with EF Hutton and agree to pay EF Hutton a monthly charge for electronic trading using Tradier Brokerage Inc.

Code of Ethics, Participation or Interest in Client Transactions and Personal Trading

As part of EF Hutton’s broader compliance policies and procedures, EF Hutton has established a Code of Ethics that will apply to all of its supervised persons. As a fiduciary, it is an investment adviser’s responsibility to provide fair and full disclosure of all material facts and to act solely in the best interest of each of my clients at all times. EF Hutton has a fiduciary duty to all clients. This fiduciary duty is considered the core underlying principle for EF Hutton’s Code of Ethics which also covers its Insider Trading and Personal Securities Transactions Policies and Procedures.  EF Hutton has the responsibility to make sure that the interests of all clients are placed ahead of EF Hutton’s or its supervised person’s own investment interest. Full disclosure of all material facts and potential conflicts of interest will be provided to clients prior to any services being conducted. EF Hutton strives to conduct business in an honest, ethical and fair manner and avoid all circumstances that might negatively affect or appear to affect my duty of complete loyalty to all clients. This disclosure is provided to give all clients a summary of EF Hutton’s Code of Ethics.

This section is intended to provide a summary description of the Code of Ethics of EF Hutton.  You may receive the EF Hutton Code of Ethics by requesting it from support@efhutton.com.

EF Hutton or its supervised persons may buy or sell for their personal accounts, investment products identical to those recommended to clients.  This creates a potential conflict of interest. To help control for this conflict of interest, it is the express policy of EF Hutton that all persons associated in any manner with the firm must place the interests of our clients ahead of their own when implementing personal investments.  EF Hutton and its supervised persons shall not buy or sell securities for their personal account(s) where their decision is derived, in whole or in part, by information obtained as a result of his/her employment unless the information is also available to the investing public upon reasonable inquiry.  In addition, securities recommended by EF Hutton are widely held and publicly traded.  Finally, the firm has develop policies and procedures under our Code of Ethics requiring all access persons to report their personal securities holdings and positions to the firm for review and approval.

EF Hutton and its supervised persons do not recommend to clients securities in which EF Hutton or a related person has a material financial interest.  We do not act as principal to our clients; we do not act as general partner in a partnership in which we solicit client investments; and we do not act as an investment adviser to an investment company that we recommend to clients.

Review of Accounts

EF Hutton’s software based investment advisor service assumes that a portfolio will not stay optimized over time and must be periodically rebalanced back to its original targets to maintain the intended risk level and asset allocations. EF Hutton reviews each client’s account when it is opened, and continuously monitors and periodically rebalances each client’s portfolio to seek to maintain a client’s targeted risk tolerance and optimal return for the client’s risk level. EF Hutton also conducts reviews when material changes may have occurred to a client’s portfolio or investment objectives.

On a quarterly basis, EF Hutton contacts each client to remind them to review and update the profile information they previously provided. EF Hutton also requests that clients reconfirm the same information on an annual basis. These notifications and confirmations include a link to the client’s current information and contact information.

Currently Hugh Rhodes, EF Hutton’s Director of Individual Investments and  Investment Adviser Representative, is responsible for developing investment models, determining appropriate rebalancing procedures and leading all reviews.

EF Hutton sends periodic account summary emails to clients, which periodic reports include information regarding your portfolio, including performance, top movers (up and down) and performance versus a relevant index. The reports also include top news stories. EF Hutton also sends other periodic or event inspired reports based upon market or portfolio activity. In addition, when clients login to the EF Hutton service, they can view their portfolio performance, asset allocation, dividends, key statistics and portfolio ratios and geographic allocation data, among other information.

Additionally, clients will receive monthly or quarterly brokerage account statements and confirmations from TD Ameritrade.

Client Referrals and Other Compensation

EF Hutton does not directly or indirectly compensate anybody for client referrals.

Other than the receipt of investment advisory fees detailed in Item 5 of this brochure, EF Hutton receives no other compensation in connection with our web-based, investment management services.

Financial Information

EF Hutton does not require or solicit prepayment of more than $1,200 in fees per client, six months or more in advance.  Therefore, we are not required to include a balance sheet for the most recent fiscal year.  We are not subject to a financial condition that is reasonably likely to impair our ability to meet contractual commitments to clients.  Finally, EF Hutton has not been the subject of a bankruptcy petition at any time.

CUSTOMER PRIVACY POLICY NOTICE

Regulation S-P, Privacy of Consumer Financial Information, requires financial institutions, including EF Hutton to provide notice to current clients and prospective clients about their policies and practices concerning the collection and use of customer, non-public information.  This privacy policy notice is given to all prospective clients of EF Hutton upon entering into a contract with EF Hutton and annually thereafter.

Privacy Disclosure Statement.  A primary goal of EF Hutton is to protect the privacy of its clients.  EF Hutton does not sell the personal information of clients to anyone. To conduct regular business, EF Hutton may collect non-public personal information from clients.  This information is provided by clients to EF Hutton on applications and other forms provided by clients to EF Hutton as well as transactions with the firm, our affiliates, or others.

Information Safeguarding.  EF Hutton has implemented strict policies and procedures aimed at protecting the sensitive nature of client information.  EF Hutton restricts access to client information to only those members of EF Hutton that must provide products and services to clients in order to service client accounts.  EF Hutton has implemented physical, electronic, and procedural safeguards aimed at meeting EF Hutton’ duty to protect non-public client information.

Use and Disclosure of Customer Information to Provide Customer Service for Client Accounts To administer, manage and service customer accounts, process transactions and provide related services for client accounts, it is necessary for EF Hutton to provide access to Customer Information within the Firm and its affiliated companies and to non-affiliated companies such as other investment advisers, broker-dealers, trust companies, custodians and insurance companies.  EF Hutton may also provide Customer Information outside of the Firm as permitted by law, such as to government entities, consumer reporting agencies or other third parties in response to subpoenas.

Since EF Hutton shares nonpublic information solely to service client accounts, our firm does not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law.  However, we may also provide customer information outside of the firm as required by law, such as to government entities, consumer reporting agencies or other third parties in response to subpoenas.  In the event that our firm has a change to its customer privacy policy that would allow it to disclose non-public information not covered under applicable law, we will allow our clients the opportunity to opt out of such disclosure.

If you have any questions concerning EF Hutton’s customer privacy policy or concerns about your personal information please feel free to contact us at the phone number listed on the cover page of this brochure.

 

SERVICE AGREEMENT

Updated July 3, 2017

This Service Agreement is entered into by EF Hutton Investments LLC (“EF Hutton”), an SEC Registered Investment Adviser and “Client” (as defined below). Client is contracting with EF Hutton to participate in EF Hutton’s investment management wrap fee program (the “Service” as defined below).

This Service Agreement covers the automated investment services provided by EF Hutton. This Services Agreement applies to both the Basic Service and the Premium Service. However, the Service Agreement provisions are modified for Clients of the Premium Service and those modifications are described in Section 33. The Institutional and Family Wealth Advisory Agreement is not an automated service and is governed by a different investment advisory agreement that is available upon request sent to info@efhutton.com.

1. Introduction.

Client and EF Hutton understand and agree that certain investment advisory services provided by EF Hutton are related to certain services provided by third-party providers, such as asset custody and transaction execution (as described below). Accordingly, Client and EF Hutton agree that the rights and protections granted to EF Hutton under this Service Agreement are bundled with all rights and protections granted to EF Hutton by Client which concern Client’s relationship with EF Hutton (“Bundled Rights”) and shall extend to this Service Agreement and govern aspects of Client’s relationship with EF Hutton. In the case of some Bundled Rights the text of this Service Agreement may contain its own similar terms and conditions and in the case of other Bundled Rights, the text of this Service Agreement does not contain its own similar terms and conditions. Whether the text of this Service Agreement contains similar terms or conditions to a Bundled Right, it shall not be interpreted to limit the inclusion and applicability of any Bundled Right to this Service Agreement.

Client understands and agrees that the terms and conditions of this Service Agreement govern all aspects of Client’s relationship with EF Hutton, including all transactions between EF Hutton and Client and all products and services now or in the future offered through EF Hutton, beginning on the date Client begins participation in the Service (as it is defined below). By entering into this Service Agreement, Client acknowledges receipt of the EF Hutton Privacy Policy (available on the “Website,” as it is defined below). If Client makes use of additional services provided by EF Hutton that require Client to agree to specific terms and conditions electronically (through clicks or other actions) or otherwise, such terms and conditions will be deemed an amendment and will be incorporated into and made part of this Service Agreement. EF Hutton reserves the right to modify or terminate this Service Agreement at any time. Updates involving the services covered by this Service Agreement will be provided via the Website. Client agrees to read this Service Agreement carefully and retain it for future reference. Client agrees to consult the Service Agreement information on the Website regularly.

If Client disagrees with any of the terms and conditions of this Service Agreement, Client must not submit an application (as it is defined below) to become a Client of EF Hutton and participate in the Service. EF Hutton reserves the right to decline any Application or to terminate any Account at any time and for any reason, in their sole discretion. Various features of the Service are offered or processed through third-party service providers, which may be an

unaffiliated company, or an affiliate of EF Hutton. Unless otherwise noted, all authority granted to or limitations of liability of EF Hutton shall include its agents and representatives and any service provider, including EF Hutton Financial Corp. (its parent company). EF Hutton and its agents or its affiliates acting on behalf of EF Hutton under this Service Agreement are authorized to perform the services contemplated by this Service Agreement.

CLIENT MUST CAREFULLY READ, BE SURE TO UNDERSTAND, AND ACCEPT THE TERMS AND CONDITIONS OF THIS SERVICE AGREEMENT BEFORE CLICKING “APPLY” OR OTHER SIMILARLY WORDED ONLINE BUTTON OR ENTERING ELECTRONIC SIGNATURE ON AN APPLICATION. IF CLIENT HAS ANY QUESTIONS ABOUT ANY OF THE PROVISIONS IN THIS SERVICE AGREEMENT CLIENT WILL ADDRESS THEM WITH EF HUTTON BEFORE AGREEING TO IT. CLIENT UNDERSTANDS THAT CLICKING OR CHECKING “APPLY” OR TYPING CLIENT’S NAME IN THE ELECTRONIC SIGNATURE FIELD IS THE LEGAL EQUIVALENT OF MANUALLY SIGNING THIS SERVICE AGREEMENT AND CLIENT WILL BE LEGALLY BOUND BY ITS TERMS AND CONDITIONS. CLIENT UNDERSTANDS THAT THIS SERVICE AGREEMENT MAY BE AMENDED FROM TIME TO TIME BY EF HUTTON, WITH REVISED TERMS POSTED ON THE WEBSITE. CLIENT AGREES TO CHECK THE WEBSITE FOR UPDATES TO THIS SERVICE AGREEMENT. CLIENT UNDERSTANDS THAT BY CONTINUING TO PARTICIPATE IN THE SERVICE WITHOUT OBJECTING TO REVISED TERMS, CLIENT IS ACCEPTING THE TERMS OF THE REVISED SERVICE AGREEMENT AND WILL BE LEGALLY BOUND BY ITS TERMS AND CONDITIONS.

2. DEFINITIONS. The terms set forth below have the following meanings as used in this Service Agreement:

Access Device. A computer, a personal electronic device (“PED”), television, telephone, or any other communications device, including any software Client uses on such device whether EF Hutton provides it to Client or otherwise, that enables Client to access and use the Service through any means, including the World Wide Web, the Internet, any wireless connection or any other computer or telephonic network.

Account. The account at EF Hutton that is established in Client’s name alone, in Client’s name together with others, or in which Client has beneficial interest if the Account is an IRA, the Assets belonging to which are managed through the Service.

Account Communications. All communications to Client from EF Hutton which relate to the Account, the Service, or, more generally, Client’s relationship with EF Hutton.

Account Holder. The natural person, corporation, partnership, trustee, custodian, or other entity in whose name the Account is opened. The singular of Account Holder where appropriate shall include the plural. For purposes of IRAs, Account Holder shall be the Custodian, as defined in the IRA Custodial Agreement, for the benefit of Client. For purposes of trusts, Account Holder shall not include the beneficiaries of the trusts.

Service Agreement. This Service Agreement, for Client to participate in the Service as offered by EF Hutton for the purpose of receiving investment advisory services provided by EF Hutton and other investment management services from outside parties which EF Hutton shall arrange to provide for Client, as it may be amended from time to time.

Allocation. Means the funds in Client’s account dedicated to their CIO. If Client has established

more than one CIO, Allocation shall mean the overall composition of Products held in the Account.

Application. The application Client prepares and submits within the “Sign Up” section of the Website for the purpose of becoming a client of EF Hutton and opening an Account with EF Hutton, and as part of which Client consents to the terms and conditions of this Service Agreement. Application includes all information provided by Client to EF Hutton in connection with the opening or maintenance of the Account, and any later applications submitted by Client to EF Hutton for additional services or account features.

Assets. Assets include cash, stocks, bonds, mutual funds, exchange traded funds, money market funds, and other financial instruments and related contracts, whether certificated or uncertificated and whether for present or future delivery, and all rights and entitlements thereto. This definition includes the securities and other property and the proceeds thereof currently or in the future held, carried or maintained by EF Hutton or any of its affiliates, in the possession or control of EF Hutton, in the possession or control of any such affiliate, or in the possession or control of any such agent for any purpose, in and for any of Client’s current or future Accounts, including any Account in which Client has a beneficial interest

EF Hutton. EF Hutton Investments LLC, a Securities and Exchange Commission Registered Investment Advisor located at One Main Street, Springfield OH 45502. Also, EF Hutton’s officers, directors, employees, representatives, successors, assigns, and authorized agents. EF Hutton, its agents, service providers, or its affiliates acting on behalf of EF Hutton under the Service Agreement are authorized to perform the services contemplated by the Service Agreement. For purposes of this Service Agreement, references to affiliates of EF Hutton include their respective officers, directors, employees, representatives, agents, successors, and assigns.

EF Hutton Trading Hours. Time periods between 9:30 AM to 4:00 PM ET during Market Hours.

Business Day. Monday through Friday, excluding U.S. stock exchange holidays. Although EF Hutton may conduct business on bank holidays, bank holidays are not considered Business Days for purposes relating to ACH transactions.

Client. The individuals, corporations, or other entities who are the Account Holder or who own a legal or beneficial interest in an Account if the Account is an IRA. For avoidance of doubt, the beneficiary of a trust is not a Client.

Client Representative. If the Client is an entity, the trustee, agent, representative, or nominee of that entity.

Fiduciary. A person or entity authorized to give instructions with respect to an Account on behalf of beneficial owners of the Account, including a Uniform Gifts to Minors Act or Uniform Transfer to Minors Act custodian, a trustee, conservator, guardian, representative, administrator, executor, attorney-in-fact, or an investment adviser. A Fiduciary is bound by the provisions of this Service Agreement to the same extent as the beneficial owners of the Account.

FINRA. The Financial Industry Regulatory Authority, and any affiliated entities, the regulator of broker-dealers in the United States.

CIO or Client Investment Objective. An investment objective of the Account established by Client through and described in the Portal as a “investment objective”. Clients may establish one

or more CIOs of the Account, subject to terms and limits described on the Website. If Client has not taken steps to identify any such objective, then the Account shall be treated as having one CIO that is either untitled or given a default title by EF Hutton.

CIO Allocation. Each Account shall have an independent CIO Allocation, as may be selected by the Client via the Portal.

Portal. The collection of tools, features, adjustments, inputs, and other controls within the Website which are provided to establish and manage the Account and access services provided through the Service.

Losses. Any and all loss, liability, cost, judgment, arbitration award, settlement, tax, penalty, action, damage, charge, expense, or fee (including attorneys’ fees and costs of collection) of any nature whatsoever, and claims therefore.

Market Hours. The open hours of the New York Stock Exchange, generally 9:30 AM to 4:00 PM Eastern Time on Business Days.

Password. Any means of personal identification (including any codes or biometrics) associated with Client’s User ID that EF Hutton may require for access to the Account (or certain Account features) or services provided through the Service, Website, and/or Portal.

Products. The investment products offered as part of the Service. Products may, but not necessarily, include any of the following: exchange traded funds, mutual funds, other similar equity related index funds, stocks, bonds, money market funds, U.S. treasury funds, cash sweep accounts, and other liquid cash and cash-like vehicles.

Service. The investment advisory services provided by EF Hutton, as described below in Section 10 and Section 32. Also the research reports, rights, benefits, promotion, and other services that EF Hutton may offer and other financial services from outside parties, which EF Hutton shall arrange to provide for Client, which may include rights to execute stock trades without paying a commission and certain limitations may apply to such services which limitations will be described in the Website.

Specialized Portfolios. Bespoke portfolios that are constructed to achieve specific investment purposes such as benefiting from a viewpoint on the outcome of a specific macro event. These portfolios are available only to Clients of the Premium Service.

User ID. The code that uniquely identifies Client for purposes of the Service.

Website. World Wide Web sites and mobile applications operated by EF Hutton; including www.efhutton.com, through which the Service is administered and, among other things, the Account is established, accessed, and managed by the Client, and Account related information is made available. The Portal is part of the Website.

3. Terms and Conditions. This Service Agreement sets forth the terms and conditions governing the Service, including the relationship of EF Hutton and Client concerning certain Assets and transactions that are maintained in the Account which is managed under the Service via the Website and described in detail herein. The provisions in this Service Agreement are in addition to any other agreements Client has entered into with EF Hutton to establish advisory services and investment accounts.

4. True and Accurate Information; Ownership. Information Client has provided on the Application is incorporated into this Service Agreement. Client affirms that such information is current, accurate, truthful, and complete. Unless otherwise required by this Service Agreement, Client agrees to promptly notify EF Hutton via the Portal of any change to the information, but in any event within thirty days of such change. Client agrees to indemnify and hold EF Hutton and its affiliates harmless from and against any and all Losses arising out of or relating to Client’s failure to provide true and accurate information on the Application or to update such information as required. Client further represents that no one else has an interest in the Account except Client and any other person that Client has previously disclosed to EF Hutton through the Application, Portal, or some other form.

5. Service Not Available Outside the United States or to Non-Resident Aliens. EF Hutton makes no representation or warranty regarding its compliance with local laws in foreign jurisdictions, or regarding the appropriateness of the Website’s content or its compliance with such local laws. The products and services provided under the Service by EF Hutton, and the Website are not being offered to, and are generally not available to, anyone located outside the 50 U.S. states, including U.S. citizens residing or working abroad. EF Hutton does not offer the Service to nonresident aliens who require a Form W-8 for tax withholding. Client understands that the Website is the only means of accessing the services provided through the Service, accessing the Account, and providing certain information and preferences regarding the Account. Client’s inability to access the Website in certain foreign countries could result in Client’s inability to access the services provided through the Service, the Account. Client agrees to indemnify and hold EF Hutton and its affiliates harmless from and against any and all Losses arising out of, relating to, or incurred as a result of the unavailability of the Website from foreign countries.

6. Means of Communication. Client agrees that the primary method of EF Hutton’s communication with Client will be by posting information on servers accessible from the Website and, to the extent required by law, sending Client a notice that directs Client to the Website from which the information can be read and printed. Client understands that EF Hutton reserves the right, however, to post Account Communications on the Website without providing notice to Client, send Account Communications to Client’s postal or electronic mail address of record or to another Access Device Client has registered with EF Hutton. Client agrees to check the Portal regularly as Client may have no other means of knowing that information and Account Communications have been delivered to Client. Client agrees that all Account Communications provided to Client in any of the ways described above will be deemed to have been good and effective delivery to Client when sent or posted by EF Hutton regardless of whether Client actually or timely receives or accesses the Account Communication.

7. Joint Account. Client may open a joint account by following the prompts on the Website, which may include additional terms that are hereby incorporated into this Agreement. By completing the joint account application process, both signatories become Account Holders and are subject to, among other things, the “Multiple Account Holders” section below. EF Hutton only offers one type of joint account /joint tenants with rights of survivorship. For joint tenants with rights of survivorship, on the death of an account owner the entire Interest in the account generally goes to the surviving account owner, on the same terms and conditions. Client is responsible for verifying that this joint registration is valid in Client’s state. Laws may vary by state, and this type of ownership may not be available in Client’s state. Client shall consult with Client’s tax professional or state laws to learn more about joint accounts and the rights associated with such accounts. Client agrees and understands that EF Hutton will not help

Client determine if this type of account is appropriate for Client’s particular situation. Client shall not create a joint account with EF Hutton if Client’s state does not permit or recognize joint-tenants with rights of survivorship. The EF Hutton individual account holder who initiates the joint account application Process via the Website and first executes this agreement electronically will be the Primary Account Holder. EF Hutton will send year-end tax forms to the Primary Account Holder only.

8. Multiple Account Holders. If there is more than one Account Holder, each Account Holder agrees to be jointly and severally liable for all obligations arising under this Service Agreement or otherwise relating to the Account or participation in the Service, including responsibility for information provided through the Portal or using any User ID and Password associated with the Account. Each Account Holder has full authority, acting individually and without notice to any other Account Holder, to deal with EF Hutton as fully and completely as if such Account Holder were the sole Account Holder. Each Account Holder authorizes EF Hutton to follow the instructions of any one Account Holder concerning any matter pertaining to the Account. This includes delivery of property in the Account to any third party or disbursement of any or all monies in the Account. If one Account Holder is not an owner of the Linked Checking Account (defined in Section 18, below), the Account Holder(s) that own(s) the Linked Checking Account represents and warrants that each Account Holder has the legal authority to make deposits to and withdrawals from the Linked Checking Account to and from the Account. All Account Holders shall hold EF Hutton harmless from and against any Losses arising out of or relating to any deposit to or withdrawal from the Linked Checking Account to and from the Account by any Account Holder. EF Hutton is not responsible for determining the purpose or propriety of any instruction received from any Account Holder as against any other Account Holder, or of any disposition of payments or deliveries of securities or other property between or among Account Holders. At its sole discretion, EF Hutton reserves the right to require written instructions from one or all Account Holders. If EF Hutton receives instructions from any Account Holder that, in EF Hutton’s opinion, conflict with instructions received from any other Account Holder, EF Hutton may comply with any of these instructions or advise each Account Holder of the apparent conflict and take no action as to any of these instructions until it actually receives and has a reasonable amount of time to act on satisfactory instructions from any or all of the Account Holders.

In the event of a dispute between or among Account Holders of which EF Hutton has notice, EF Hutton reserves the right, but is not obligated, to place restrictions on participation in the Service. Restrictions are at EF Hutton’s sole discretion and may not always be considered reasonable. . EF Hutton also may, at the expense of the Account Holders, commence or defend any legal action or proceeding for or in the nature of intermediary or interested party to have the dispute resolved judicially. If a suit or proceeding for or in the nature of interpleader is brought by or against it, EF Hutton may deliver the Account into the registry of the court, at which time EF Hutton will be deemed to be and will be released and discharged from all further obligations and responsibilities under this Service Agreement. Each Account Holder agrees that, on the death or disability of an Account Holder, divorce of married Account Holders, or other event that causes a change in ownership or capacity with respect to the Account, the remaining Account Holder(s) will immediately give EF Hutton official written notice of such change of ownership or capacity. EF Hutton will not be responsible for any transfers, payments or other transactions in the Account made at the direction of a former Account Holder or incapacitated Account Holder before EF Hutton actually received and had a reasonable amount of time to act on such official

written notice. Following receipt of such official written notice, EF Hutton may require additional documents and reserves the right to retain such Assets in and/or restrict transactions in the Account as it deems advisable in its sole discretion to protect itself against any Losses. Any former Account Holder and the estate of any deceased or incapacitated Account Holder will remain jointly and severally liable for any losses in the Account arising out of or relating to transactions initiated before EF Hutton actually received and had a reasonable amount of time to act on such official written notice. EF Hutton will not notify other Account Holders of the actions taken by any one Account Holder. Each Account Holder agrees that notice provided to any one Account Holder will be deemed to be notice to all Account Holders for all purposes. Joint accounts are made available at the sole discretion of EF Hutton. Joint accounts are not available for IRA accounts.

9. Fiduciary Accounts. EF Hutton does not review any action or inaction of a Fiduciary with respect to an Account and is not responsible for determining whether a Fiduciary’s action or inaction satisfies the standard of care applicable to such Fiduciary’s handling of an Account. EF Hutton is not responsible for determining the validity of a person or entity’s status or capacity to serve as a Fiduciary. At its sole discretion, EF Hutton may require additional documentation before permitting a Fiduciary on an existing Account or when opening a new Account. The Fiduciary agrees to indemnify and hold EF Hutton and its affiliates harmless from and against any Losses arising out of or relating to any act, error, or omission of the Fiduciary.

A custodian of a Uniform Transfers to Minors Act or Universal Gifts to Minors Act Account is responsible for all activity in the Account. Activity resulting from any instructions received from the minor, including placing or attempting to place orders, using or attempting to use a custodian’s Password to the Account or taking delivery or attempting to take delivery of Assets of the Account, and all related services, will be deemed to be the actions of the custodian. As the person responsible for the Account, the custodian will be held liable for any consequences of such activity, including any losses incurred by EF Hutton. The custodian and minor agree to indemnify and hold EF Hutton and its affiliates harmless from and against any losses arising out of or relating to any act, error, or omission of the custodian or minor.

10. The Service; Scope of Services.

Service. Services other than Interactive Website Consultations. In applying for and using the Service, Client is engaging EF Hutton to provide discretionary investment advisory services with respect to the Account. EF Hutton will provide the scope of services described herein on the terms and conditions described herein. EF Hutton hereby accepts such engagement. EF Hutton offers investment advice over the internet through the Website and Portal. EF Hutton’s service differs from many other investment advisory firms. Client must be willing to receive investment advice over the internet in order to use EF Hutton’s services. EF Hutton provides customer support over the telephone and internet for the purposes of technical support, but such support is educational in nature only. EF Hutton provides investment objective-based investment advice. Client identifies financial objectives via the Website and EF Hutton then provides investment advice specific to each objective and client-provided profile via the various features offered to Client through the Portal, some of which are optional. EF Hutton’s advice for each of Client’s objectives is based on EF Hutton’s investment methodology regarding objective-targets for asset allocation strategies and certain information and preferences requested by EF Hutton and provided by Client, including the Allocation, which will serve as the account policy resolution (the “APR”). The APR may be modified as EF Hutton adjusts its investment methodology and Client

updates Client’s information and preferences via the Portal. More information about EF Hutton’s investment advice and methodologies is available on the Website.

EF Hutton’s investment advice is based solely on information Client provides via the Portal in response to the requests EF Hutton makes solely via the Portal. EF Hutton relies on information provided by Client and cannot be held responsible for any recommendations based on inaccurate or incomplete information. Inaccurate or incomplete information includes, but is not limited to, information that was once accurate or complete but becomes inaccurate or incomplete due to changes in Client’s circumstances. Client acknowledges that if Client provides false, inaccurate, or incomplete information to EF Hutton, or fails to update previously provided information that is no longer accurate or complete based on changes in Client’s circumstances, the investment advice EF Hutton provides may not match Client’s investment needs.

In order for EF Hutton to learn more about Client’s financial circumstances, EF Hutton may provide financial account aggregation services via the Portal (“Aggregation Services”). As part of the Aggregation Services, EF Hutton, acting as your authorized agent, will retrieve certain financial information from institutions you designate using certain third-party services that aggregate and sync accounts such as By-All-Accounts (“Synced Accounts”). Use of the Aggregation Services is completely voluntary and at Client’s option. Client understands and agrees that EF Hutton’s recommendations and other services will not be based on Synced Accounts except as specifically disclosed in the Portal. EF Hutton is not responsible for and cannot guarantee the accuracy of information about Client that EF Hutton receives from the Synced Accounts. EF Hutton may not be able to foresee or anticipate technical or other difficulties that may result in failure to obtain data from your voluntary use of the Aggregation Services. Client further understands that EF Hutton will typically not attempt to refresh the data from the Synced Accounts more than once a day, but may do so less often for a variety of reasons, including connectivity issues and access restrictions imposed by other parties. EF Hutton assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications or personalization settings. Client shall confirm the accuracy of Synced Account data through sources independent of EF Hutton.

Client understands that Products available for inclusion in the Service and the Account are determined by EF Hutton in its sole discretion, and EF Hutton may change the Products available for inclusion in the Service and the Account from time to time without notice to or consent from Client. Client appoints EF Hutton to manage the Account on a discretionary basis and act as Client’s attorney-in-fact with limited power and authority for Client and on Client’s behalf to buy, sell, and otherwise effect investment transactions in the name of the Account in accordance with the APR. EF Hutton shall manage the Account by issuing trading instructions to the Custodian and possibly other third-parties to cause the Account to purchase and sell Products pursuant to the APR. EF Hutton will manage the investments in the Account based on the APR and is responsible for placing orders for execution of securities in the Account; Client will not be able to place trades in the Account. The Products and the proportions in which they are held in Client’s Account may be rebalanced in EF Hutton’s discretion to resemble the information and preferences specified by Client in the Portal or in the event of any changes to the APR, including but not limited to any changes in the Products selected by EF Hutton. Client understands and agrees that such transactions may affect the market value of the Account, and may also have tax consequences. EF Hutton will place orders for execution of securities in the Account in accordance with the investment and trading discretion granted under the terms of this Agreement. Client will receive the price at which such orders are executed in the

marketplace. Instability in financial markets may expose Client to greater market, liquidity, and execution risk, including extreme bid-ask spreads, acute price dislocation, and incomplete execution. EF Hutton reserves the right, at any time and without notice, to delay or manage trading in response to market instability.

Client understands and agrees that the Account’s composition and performance may be different for a variety of reasons from those of the APR. These differences can arise each time the APR is adjusted or Allocation rebalanced, including, but not limited to, the following instances: (a) when the Account is established and the initial Product(s) are purchased; (b) when Client contributes additional capital to Client’s account; (c) when Client revises the information and preferences Client provides to EF Hutton; (d) when the Fee (as defined below) is charged and paid; (e) when the market value of the Products fluctuates; (f) when dividends from the Products, if any, are reinvested; (g) hardware or software malfunction, failure, or unavailability; and/or (h) when EF Hutton adjusts its investment methodology or the mix of Products offered. Client agrees that EF Hutton and affiliates of EF Hutton or other third-party partners shall not be held responsible for any amounts by which the Account’s composition varies from the APR.

Notwithstanding other provisions of this Service Agreement, Client may request EF Hutton allocate assets in the Account as determined by Client and other than as determined by EF Hutton. EF Hutton may accept or reject such requests in its sole discretion.

(B) Interactive Website Consultations. EF Hutton will, from time to time, provide selected Clients the opportunity to schedule a webchat consultation with a financial consultant who will provide general financial information, including advice relating to debt, such as student loans and credit card debt, mortgages, savings, and retirement (including pensions and social security) and general tax-related information that does not constitute legal advice, tax advice or advice requiring licensure such as a Certified Public Accountant (collectively, “Interactive Website Consultations”). Any such financial information may be based on information provided by Client to the financial consultant and the financial consultant will not be required to independently verify any such information. EF Hutton shall rely on such information and cannot be held responsible for any recommendations based on inaccurate or incomplete information. Client acknowledges that if Client provides false, inaccurate, or incomplete information to EF Hutton, the financial planning advice that EF Hutton provides through the financial consultant may not match Client’s needs. Client is under no obligation to accept or follow any recommendations made by a financial consultant as part of the Interactive Website Consultations and neither EF Hutton nor the financial consultant will have any discretion over your assets or accounts with respect to such recommendations. Client acknowledges that agrees that the Interactive Website Consultations will not include the implementation of any advice or recommendations (such as the placing or execution of securities transactions) and Client will have the sole authority to implement any recommendations. A Client who has an Account and receives Interactive Website Consultations will continue to receive the services EF Hutton provides through the Service as described herein. Client acknowledges that the financial consultant who provides Interactive Website Consultations to Client is not an attorney or accountant, and no advice given to Client via the Interactive Website Consultations should be interpreted as legal or tax advice.

11. Account Minimums, Fees and Other Charges. Certain account fees are based on minimum balance requirements. The account requirements are described in the Form Brochure, the Wrap Brochure and the Website. Fees are set out in the Firm Brochure, Wrap Brochure and on the

Website. Fees are subject to change from time to time with at least sixty (60) days notice to Client.

12. Dollar-Based Transactions and Fractional Shares. Client understands that, subject to applicable requirements, EF Hutton may report holdings and transactions in Client’s Account in terms of either U.S. Dollars or shares. Accordingly, Client may hold fractional share interests in securities. Client understands that fractional share amounts are typically unrecognized and illiquid outside the EF Hutton platform and that fractional shares might not be marketable outside the EF Hutton platform or transferrable to another investment or brokerage account.

13. Execution, Clearing, and Custody. EF Hutton shall maintain the Account and custody of the Assets shall be held at a third-party registered custodian appointed by EF Hutton in its sole discretion, and perform functions such as executing transactions and crediting of interest and dividends. Transactions shall be cleared by an institution that EF Hutton s determines at its discretion. The Client shall retain ownership of all cash, securities, and other instruments in the Account.

14. Order Handling. EF Hutton may, but is not required to, aggregate orders for the sale or purchase of securities for the Account with orders for the same security for other EF Hutton customers, including its employees and their related persons, and for EF Hutton’s own account. In such cases, each Account will be charged or credited with the average price per unit.

15. Client’s Responsibilities. Client recognizes that the value and usefulness of the advisory services provided by EF Hutton will be dependent upon Client’s active participation in the formulation and direction of the Account’s investment allocations, which requires, among other things, Client to provide true and accurate information to EF Hutton. Client further accepts full responsibility for all investment decisions Client makes in contravention of the investment advice EF Hutton provides to Client via the Website or in connection with Interactive Website Consultations and agrees to hold EF Hutton harmless therefrom.

16. Compensation.

(A) Service. Services other than Interactive Website Consultation Services. Client will be charged a single wrap fee (“Fee”) for all services. The Fee Schedule is attached hereto within the Firm Brochure. Client understands and agrees that EF Hutton may change the Fee or amend the Fee Schedule at any time by giving 30 days’ prior written notice. Following the notice period, the new Fee will become effective unless Client has terminated this Service Agreement per Section 24. Client understands and agrees that EF Hutton and its affiliates, and their representatives, consultants, or other agents in connection with the performance of their respective services, shall be entitled to and may share in the Fee or revenues derived from the Service. Regardless, EF Hutton may charge Client and deduct from the Account fees for certain special requests and irregular services including, but not limited to, delivery of documents in paper form, and physical delivery of securities or transfers in-kind of securities to another investment or securities firm. Client also agrees to pay all applicable federal, state, and local taxes. Client authorizes EF Hutton to deduct charges directly from the Account. Client understands and agrees that transactions related to the funding of current charges will be conducted in accordance with Section 17 herein. Payment of the Fee will be reflected on Client’s periodic statements. It is Client’s responsibility to verify the accuracy of Fee calculations. Fees will be due upon the end of the calendar month. Fees will also be due: (a) on any day Client requests withdrawal of amounts equal to or greater than 98% of the market value of the

Account at that time minus the amount of fees due; and (b) on the day this Service Agreement is terminated. Upon such an occurrence, EF Hutton will liquidate all holdings of the Account, deduct fees due from the Account, and disburse the remaining proceeds from liquidation. The only other fees Client will incur are the fees embedded in the Products purchased on Client’s behalf. EF Hutton does not earn or receive such fees.

17. Payments. Upon dates that Fees are due, EF Hutton may order the sale of Products held in the Account in EF Hutton’s discretion in amounts necessary to fund current charges. EF Hutton may do the same for fees for special requests and certain irregular services. Any incidental excess proceeds which result from a Fee-related sale will be applied as soon as is practical to purchase additional shares of Products in amounts of Products which will cause, as determined by EF Hutton, the Account to equal, or approximate as closely as possible, the Allocation.

18. Future Services. EF Hutton will notify Client when new services are available, such as the capability to link bank accounts and other accounts with their EF Hutton investment account.

19. Deposits, Withdrawals, and Allocation Changes. At any time Client may enter instructions with EF Hutton to make cash deposits to the Account from the Linked Checking Account or withdrawals from the Account to the Linked Checking Account by taking appropriate action within the Portal. Client understands and agrees that the deposit and withdrawal of funds to or from the Account may be conducted in cash via Automatic Clearing House (“ACH”) transaction from or to the Linked Checking Account.

Client understands and agrees that ACH transactions are subject to processing delays which may last up to five Business Days or longer and funds transferred may not be credited to the Account or otherwise available to Client during processing. EF Hutton, in its sole discretion, may impose a longer waiting period during which funds may not be available for trading or withdrawal. EF Hutton may, in their sole discretion, permit the transfer of funds into or out of the Account in other forms or via alternative means. EF Hutton reserves the right, in their sole discretion and without advanced noticed, to refuse certain types of additions of funds to the Account. EF Hutton reserves the right to require that Client make requests for withdrawals from the Account in writing. Client may alternatively request transfer of Assets to a different account EF Hutton or to a third-party broker-dealer by submitting request to EF Hutton in a form determined by EF Hutton. Certain Assets held in the Account may not be accepted by a third-party investment company or broker-dealer. EF Hutton may determine to cancel this Service Agreement as a result of a request to transfer Assets to a broker-dealer. Subject to the terms of Section 17 herein, Client may enter instructions with EF Hutton to withdraw an amount up to the current market value of the Account at any time, not including fees that are due. When client makes a withdrawal request, EF Hutton and its bank service provider may act on Client’s behalf to initiate the ACH disbursement. EF Hutton will transmit payment instructions to the applicable bank. It is Client’s responsibility to ensure that instructions are accurate before requesting that EF Hutton initiate an ACH disbursement. EF Hutton may in its discretion attempt to abide by a subsequent request for a change to instructions, but it is not obligated to do so. Client agrees to indemnify and hold EF Hutton, and their affiliates harmless from any Losses arising out of or relating to an attempt to amend or cancel an ACH transfer request.

Client understands that any erroneous, mismatched, or incomplete identifying information on an incoming ACH transfer may result in such ACH transfer being rejected, lost, posted to an incorrect account, or returned to the originating bank without notice to Client and Client agrees to indemnify and hold EF Hutton, and their affiliates harmless from any Losses arising out of or

relating to any erroneous, mismatched, or incomplete identifying information on an incoming ACH transfer. Client understands that EF Hutton generally does not place orders for the execution of transactions in the Account outside of EF Hutton Trading Hours and any orders initiated in response to asset allocation changes or client deposits or withdrawals received outside of EF Hutton Trading Hours will not be placed before 10:00 AM on the next Business Day. Client further understands that orders initiated thirty (30) minutes or less before the end of a given day’s Market Hours generally will not transact until the next Business Day. Trades that are triggered by multiple client actions in a single day (e. g., multiple portfolio allocation changes in different objectives), generally will not be placed until the next day’s EF Hutton Trading Hours. Client understands and agrees that EF Hutton shall not be held responsible for any Losses or other consequences which result from EF Hutton’s timing of or other determinations for placing order.

20. Proxies. Client delegates to EF Hutton the authority to receive and vote all proxies and related materials for any security held in the Account. EF Hutton accordingly will vote on matters requiring a proxy vote for the securities held in the Account and will do so in a way that is reasonably expected to ensure that proxy matters are conducted in the best interest of clients. Client also delegates to EF Hutton the authority to vote on other corporate actions, like tender offers, which do not require a proxy or are not solicited via proxy. Client may change or cancel this instruction at any time by giving EF Hutton prior written notice. Clients may request information regarding how EF Hutton voted a client’s proxies, and clients may request a copy of the EF Hutton’s proxy policies and procedures by emailing info@efhutton.com.

21. Personal Information. The respective rights and responsibilities of EF Hutton and Client regarding the collection, processing, and use of Client’s personal information and Client’s rights to limit the use and disclosure of such information, are set forth in this Section 21 as well as the EF Hutton Privacy Policy, as amended from time to time. Such rights and responsibilities are further defined by applicable laws and regulations of national and state governments and international bodies. In the event of any controversy regarding EF Hutton’s collection, use, processing, transfer, or receipt of any information about Client, Client agrees that remedies will be expressly limited to those specifically provided by the applicable laws and regulations, in accordance with this Service Agreement. Client authorizes EF Hutton to obtain reports, from time to time, concerning Client’s background, credit standing, and business conduct (and Client’s spouse’s if Client lives in a community property state). Client also authorizes EF Hutton, without notification, to request a new background and/or credit report in connection with any review, extension, execution, or renewal of the Account. On written request, EF Hutton will advise Client whether it obtained credit reports, and if so, will provide the name and address of the reporting agency that furnished the reports. In addition, Client understands that EF Hutton reserves the right to report to consumer and securities credit reporting agencies any negative credit information pertaining to any Account held by Client at EF Hutton or managed by EF Hutton. Client authorizes EF Hutton to share credit bureau information and any other personal information that EF Hutton obtains with its affiliates and with unaffiliated third-parties in accordance with the EF Hutton Privacy Policy. Client may request that EF Hutton send personal data regarding Client’s EF Hutton account to third-parties outside of EF Hutton’s control (e.g., financial account aggregators). Client may make such a request in a number of different ways, including, but not limited to, entering Client’s EF Hutton login information through a third-party website. Client understands and agrees that EF Hutton cannot control what those third-parties, may or may not do with Client’s data. Client understands that EF Hutton does not guarantee the

accuracy and quality of Client’s personal data that EF Hutton may send to third-parties at Client’s request. Client agrees to hold EF Hutton harmless from Losses of any kind that may result from EF Hutton sending Client’s personal data to third-parties at Client’s request. EF Hutton uses BY-All-Accounts, a third-party provider, to provide the Aggregation Services. If Client utilizes the Aggregation Services, Client agrees that Client will abide by their Terms of Use for participating in the Services. These terms may be seen at www.byallaccounts.com – Morningstar and may be amended from time to time. If Client employed by or registered with a broker-dealer or other employer whose consent is required to open and maintain an EF Hutton account, and EF Hutton has received such consent, Client agrees that EF Hutton may, but is not required to, provide duplicate statements and confirms to that broker-dealer or other employer in any manner EF Hutton chooses.

22. Website Access. Client understands that EF Hutton cannot guarantee that access to the Website and Account management via the Portal will be available all the time. EF Hutton reserves the right to suspend access to the Service without prior notice for scheduled or unscheduled system repairs or upgrades. Further, access to the Website, and hence, the Account, may be limited or unavailable due to, among other things: market volatility, peak demand, systems upgrades, maintenance, any kind of interruption of the services provided by EF Hutton or communication interruption, hardware or software malfunction or failure, internet service failure or unavailability, the actions of any governmental, judicial, or regulatory body, and force majeure. Client agrees that EF Hutton will not be liable to Client for any Losses incurred by Client (including, but not limited to, lost profits, trading losses, and similar damages) resulting from such access limitations or unavailability.

23. Disclosure Statement. Client hereby acknowledges receipt of a copy of EF Hutton’s Wrap Fee Brochure, the EF Hutton Privacy Policy, and other disclosing documents provided to Client at the time this Service Agreement is made.

24. Term. Client may terminate this Service Agreement without penalty within five Business Days of Client’s electronic consent. This Service Agreement may be terminated at any time by either party for any reason upon written notice to the other party in accordance with this Section 24. Termination by Client is effective upon receipt by EF Hutton of Client’s written electronic notice of intent to terminate and payment of outstanding charges as described in Section 17. For the purposes of this Section 24, “Client’s written electronic notice of intent to terminate” shall mean Client’s election to close Client’s Account with EF Hutton as such action is provided within the Portal. Termination by EF Hutton is effective on the date of written electronic notice to the Client, unless a later date is stated in the notice. The Client shall be responsible for any transactions initiated prior to termination. The terms and conditions of this Service Agreement will survive termination of the Account and will continue to apply to any disputed or other remaining matters involving Client’s relationship with EF Hutton. After the termination of the Account, Client will remain liable to EF Hutton under this Service Agreement. If Client should re-open the Account at a date subsequent to terminating the Account and Service Agreement, Client agrees to be bound by the Service Agreement in effect at the time Client re-opens the Account. Upon termination, EF Hutton is expressly authorized by Client to redeem or otherwise liquidate any shares of Products held in the Account and disburse proceeds to Client. Such redemption or liquidation may affect the asset allocation and/or market value of the Account, and may also have tax consequences.

25. Security. When Client accesses the Website using an up-to-date version of third-party web

browser (such as Microsoft Internet Explorer, Firefox, Chrome, or Safari) that is compatible with industry standard encryption, EF Hutton’s security systems automatically protect Client’s communications through server authentication and data encryption. Access requires password protection to log onto the Portal.

26. Website Analytic Services. Client understands that analytical tools provided within the Portal are not a guarantee of performance and EF Hutton does not guaranty or make any warranty of any kind, express or implied, regarding the projections or recommendations generated by the investment tools. Client agrees that EF Hutton is not liable for any Losses (including lost opportunity or profits) arising out of or relating to discrepancies between projections and suggestions and actual performance.

27. Limitation. Client understands and agrees that Client is responsible for all Losses arising from or related to the Account. Except for negligence or malfeasance or violation of applicable law, Client agrees that EF Hutton and their respective officers and employees shall not be liable hereunder for any action performed or omitted to be performed or for any errors of judgment in managing the Account or providing Interactive Website Consultations. Federal and state securities laws impose liabilities under certain circumstances on persons who act in good faith and therefore nothing herein shall in any way constitute a waiver or limitation of any rights which Client may have under federal or state securities laws. In addition, it is possible that Client or EF Hutton itself may experience computer equipment failure, loss of internet access, viruses, or other events that may impair access to EF Hutton’s software-based financial advisory service. EF Hutton and its representatives are not responsible to any Client for losses unless caused by EF Hutton breaching its fiduciary duty.

28. General and Miscellaneous Provisions and Disclosures.

a. Client represents and confirms that Client has full power and authority to execute, deliver, enter into, and perform Client’s obligations under this Service Agreement. Client represents that Service Agreement has been duly authorized, executed, and delivered by Client and is the legal, valid, and binding agreement of Client, enforceable against Client in accordance with its terms, and that the terms of this Service Agreement do not violate any obligation by which the Client is bound, whether arising by contract, operation of law, or otherwise.

b. If this Service Agreement is being executed on behalf of a corporation, trust, government, partnership, or other business or legal entity, Client further represents that neither Client nor Client’s Advisory Account is subject to the Investment Company Act of 1940 and that the governing documents for such entity authorize and permit the provision of investment advisory services through an advisory account in accordance with the terms of this Service Agreement.

c. If Client is a corporation, trust, government, partnership, or other business or legal entity, the Client Representative executing this agreement on behalf of Client represents and confirms that the Client Representative has the requisite legal capacity, authority, and power to execute, deliver, and perform such execution and the obligations under this Service Agreement as applicable. If Client is a corporation or partnership, the individual signing this Service Agreement represents that the individual has been authorized to execute this Service Agreement by appropriate corporate or partnership action. Client agrees to indemnify, defend, and hold, EF Hutton, and their affiliates harmless from any Losses arising out of or relating to claims against EF Hutton arising out of Client’s failure – whether it be intentional or unintentional – to abide by Client’s representations in this paragraph.

d. If the Client is an entity, and if Client Representative is entering into this Service Agreement, Client and Client Representative understand and agree that the representations, warranties, and agreements made herein are made by Client both: (1) with respect to Client; and (2) with respect to the Client Representative.

e. If the account is opened in the name of a trust, this Service Agreement incorporates the terms of the separate “Certification of Trust” document included below.

f. Client shall advise EF Hutton immediately of any event that might affect this authority or the binding effect of this Service Agreement.

g. The products available through the Service are investment products and as such: (i) are not insured by the Federal Deposit Insurance Corporation (“FDIC”); (ii) carry no bank or government guarantees, and are not a deposit or other obligation of, or guaranteed by, a bank; and (iii) have associated risks. Client understands that investments in securities are subject to investment risks, including possible loss of the principal amount invested.

h. Client understands and agrees that EF Hutton offers no guarantees of investment performance based on the predictions and suggestions of the investment tools or other advice provided through the Service. In deciding to engage EF Hutton and open the Account, Client represents that Client has determined that the Service is appropriate for Client, taking into account all factors that Client believes are relevant, including but not limited to the terms and conditions of the Service, Client’s interest in having EF Hutton make investment decisions for Client, Client’s anticipated need for investment advice, the costs and potential benefits of the Service as compared to other types of advisory account programs, such as nondiscretionary account programs, and the costs and potential benefits of this Service as compared to traditional investment services, such as a commission-based brokerage account, trading activity, and Client’s level of investment experience. Client represents that Client is aware of and is willing to assume risks involved with investing in the Assets pursuant to the Service.

i. To the extent not inconsistent with Federal law, this Service Agreement shall be governed by and construed in accordance with the laws of New York, and in compliance with the Investment Advisers Act of 1940. The federal and state securities laws impose liabilities under certain circumstances on persons who act in good faith, and therefore nothing herein shall in any way constitute a waiver or limitation of rights which Client may have under federal and state securities laws.

j. If any section, paragraph, or provision of this Service Agreement is held to be invalid, void, or unenforceable by reason of any law, rule, administrative order or judicial decision, that determination will not negate the validity of the remaining sections, paragraphs, and provisions of this Service Agreement.

k. Except as specifically permitted in this Service Agreement, no provision of the Service Agreement can be, nor will it be deemed to be, waived, altered, modified, or amended unless agreed to in writing signed by an authorized officer of EF Hutton.

l. EF Hutton may amend this Service Agreement by modifying or rescinding any of its existing provisions or by adding new provisions. Any such amendment shall be effective as of the time EF Hutton has notified Client in writing of any change or such later date as EF Hutton may establish. EF Hutton reserves the right, but does not intend to follow it as a matter of course, to notify Client of modifications to the Service Agreement by mailing or e-mailing a written notice or

new Service Agreement to Client. Client understands that the normal method of notifying Client of modifications to the Service Agreement will be to post the information on the Website. Client understands that by not closing and/or continuing to use the Account, Client confirms Client’s agreement to abide by the Service Agreement, as amended from time to time. Client also agrees that EF Hutton may change the Service at any time and that it is not obligated to provide Client with notice of such a change.

m. In addition to the terms in this Agreement, when using products, services or features on the Website and Portal, Client shall be subject to any additional posted guidelines, disclosures, methodology documents, or requirements applicable to such product, service or feature, which may be posted and modified from time to time. All such additional terms are hereby incorporated by reference into this Agreement.

n. EF Hutton’s failure to insist on strict compliance with this Service Agreement or any other course of conduct on EF Hutton’s part will not be deemed a waiver of EF Hutton’s or EF Hutton Investments, Inc. rights under this Service Agreement.

o. The parties hereby acknowledge and agree that this Services Agreement alone, together the other documents agreed to and delivered in connection with becoming and continuing to be a Client, constitutes the final understanding between the parties with respect to all matters contained herein. The parties further acknowledge and agree that, with the exception of the above referenced agreements, there are no prior or coexisting agreements different or distinct from those contained herein, and all such prior and coexisting agreements, if any, are merged herein. This Service Agreement, all other written agreements and terms contained on statements and confirmations contain the entire understanding between EF Hutton and Client. This Service Agreement supersedes any previous agreements that Client has made with EF Hutton individually with regard to the Account, and if the Account is held jointly, it supersedes any previous agreements made by the same parties to this Service Agreement, to the extent that the subject matter is covered by this Service Agreement. EF Hutton may not assign its rights and duties under this Service Agreement to any of its successors, subsidiaries, affiliates, or any other entity without obtaining Client’s consent. Client will be deemed to have consented to EF Hutton assigning its rights and duties under this Service Agreement if after receiving adequate written electronic notice of a proposed assignment Client does not serve notice of objection to EF Hutton. Client may not assign the rights and obligations under this Service Agreement without first obtaining the prior written consent of EF Hutton. Any purported assignment in violation of this Service Agreement will be void.

p. This Service Agreement will pass to the benefit of EF Hutton and its successors, assigns, and agents. In addition, Client hereby agrees that this Service Agreement and all the terms hereof, will be binding on Client’s heirs, executors, administrators, personal representatives, and any assigns permitted by EF Hutton.

q. EF Hutton will not provide accounting or legal advice. EF Hutton will not be responsible for the acts, omissions, or insolvency of any other agent, broker, or the independent contractor selected to take any action or to negotiate or consummate any transaction for the Account.

r. Client understands that this Service Agreement will be deemed to have been made in the State of Ohio and will be construed, and the rights and liabilities of the parties determined, in accordance with the internal laws of the State of Ohio.

s. The heading of each provision of this Service Agreement is for descriptive purposes only and will not be deemed to modify or qualify any of the rights or obligations set forth in each such provision.

t. Client’s intentional action in electronically signing the Application is valid evidence of consent to be legally bound by this Service Agreement and by other documentation submitted in the Application process or governing Client’s relationship with EF Hutton. The use of an electronic version of Service documents fully satisfies any requirement that they be provided to Client in writing. Client acknowledges that Client may access and retain a record of the documents that Client electronically signs through the Portal. Client is solely responsible for reviewing and understanding all of the terms and conditions of these documents. Client accepts as reasonable and proper notice, for the purpose of any and all laws, rules and regulations, notice by electronic means, including, the posting of modifications to this Service Agreement on the Portal. Client acknowledges and agrees that EF Hutton may modify the Service Agreement from time to time and Client agrees to consult the Portal from time to time for the most up-to-date Service Agreement. The electronically stored copy of this Service Agreement is considered to be the true, complete, valid, authentic, and enforceable record of the Service Agreement, admissible in judicial or administrative proceedings to the same extent as if the documents and records were originally generated and maintained in printed form. Client agrees to not contest the admissibility or enforceability of EF Hutton’s electronically stored copy of the Service Agreement in any proceeding arising out of the terms and conditions of the Service Agreement. If more than one individual has electronically signed this Service Agreement as a Client, the obligations under this Service Agreement will be joint and several and identical to the obligations of joint Account Holders that have signed a paper Service Agreement.

u. Client understands and agrees that EF Hutton may in its discretion, but is not obligated to, monitor or record any of Client’s interactive website conversations with EF Hutton for quality control and regulatory compliance purposes and for its own protection. EF Hutton may also monitor and make a record of Client’s use of Services and any other communications between EF Hutton and Client and may use the resulting information for internal purposes or as may be required by applicable law. Unless otherwise agreed in writing, EF Hutton does not consent to the recording of telephone conversations by any third-party or Client. Client acknowledges and understands that not all telephone lines or calls are recorded by EF Hutton and EF Hutton does not guarantee that recordings of any particular telephone calls will be retained or capable of being retrieved.

29. Electronic Delivery of Documents. Client acknowledges receipt and acceptance of the “Consent to Electronic Delivery of Documents from EF Hutton” which is attached hereto. All written notices to any party under this Service Agreement shall be sent to such party in electronic form either through applicable means of the Portal or through designated email addresses, or such other address as such party may designate in writing to the other. Notwithstanding the above, EF Hutton may occasionally require certain communications from the Client to be sent in non-electronic form.

30. Electronic Funds Transfer. Client acknowledges receipt and acceptance of to the “Electronic Funds Transfer Rights and Error Resolution” which is attached hereto.

31. Arbitration Agreement and Disclosure

a. Required Arbitration Disclosures. This Service Agreement contains a pre-dispute arbitration

clause. By signing an arbitration agreement, the parties agree as follows: i. all parties to this Service Agreement are giving up the right to sue each other in court, including the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed; ii. arbitration awards are generally final and binding; a party’s ability to have a court reverse or modify an arbitration award is very limited; iii. The ability of the parties to obtain documents, witness statements and other discovery is generally more limited in arbitration than in court proceedings; iv. the arbitrators do not have to explain the reason(s) for their award unless, in an eligible case, a joint request for an explained decision has been submitted by all parties to the panel at least 20 days prior to the first scheduled hearing date; v. the panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry; vi. the rules of some arbitration forums may impose time limits for bringing a claim in arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court; vii. the rules of the arbitration forum in which the claim is filed, and any amendments thereto, shall be incorporated into this agreement.

b. Client agrees to resolve by binding arbitration any controversy that may arise between EF Hutton or its affiliates and Client relating in any way to this Service Agreement, Client’s relationship with EF Hutton or its affiliates, any account held with any affiliate of EF Hutton, or any service provided by EF Hutton or any of its affiliates to Client. This arbitration agreement includes any controversy involving transactions of any kind made on my behalf or through EF Hutton or any of its affiliates, or the performance, construction, or breach of this Service Agreement or any other written agreement between EF Hutton and Client.

c. Such arbitration shall be conducted before FINRA, or and in accordance with the arbitration rules and regulations then in effect at FINRA. Any party may initiate arbitration by filing a written claim with FINRA. If arbitration before FINRA is unavailable or impossible for any reason, then such arbitration will be conducted under the auspices of the American Arbitration Association (“AAA”), pursuant to its Arbitration Rules and Procedures. The arbitration shall be conducted by a retired judge who is experienced in resolving disputes regarding the Securities business. The parties agree that the arbitration shall apply the substantive law of New York to all state law claims, that limited discovery shall be conducted in accordance with AAA’s Arbitration Rules and Procedures, and that the arbitrator may not award punitive or exemplary damages, unless (but only to the extent that) such damages are required by statute to be an available remedy for any of the specific claims asserted. In accordance with AAA’s Arbitration Rules and Procedures, the arbitrator’s award shall consist of a written statement as to the disposition of each claim and the relief, if any, awarded on each claim. The award shall not include or be accompanied by any findings of fact, conclusions of law, or other written explanations of the reasons for the award. The parties understand that the right to appeal or to seek modification of any ruling or award by the arbitrator is severely limited under state and federal law.

d. Federal and state statutes of limitation, repose, and/or other rules, laws, or regulations impose time limits for bringing claims in federal and state court actions and proceedings. The parties agree that all federal or state statutes of limitation, repose, and/or other rules, laws, or regulations imposing time limits that would apply in federal or state court, apply to any dispute, claim or controversy brought under this Agreement, and such time limits are hereby incorporated by reference. Therefore, to the extent that a dispute, claim, or controversy arises under this Agreement and would be barred by a statute of limitation, repose or other time limit, if brought in a federal or state court action or proceeding, the parties agree that such dispute, claim, or controversy shall be barred in an arbitration proceeding.

e. Any award of the arbitrator or a majority of the arbitrators will be final and binding, and judgment on such award may be entered in any court having jurisdiction. This arbitration provision will be enforced and interpreted exclusively in accordance with applicable federal laws of the United States, including the Federal Arbitration Act. Any costs, attorneys’ fees or taxes involved in confirming or enforcing the award will be fully assessed against and paid by the party resisting confirmation or enforcement of said award.

f. No person shall bring a putative or certified class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement against any person who has initiated in court a putative class action or who is a member of putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until: (i) the class certification is denied; (ii) the class is decertified; or (iii) the customer is excluded from the class by the court. Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this Service Agreement except to the extent stated herein.

g. This agreement to arbitrate does not constitute a waiver of your right to seek a judicial forum where such waiver would be void under federal or applicable state securities laws.

h. Such forbearance to enforce an agreement to arbitrate will not constitute a waiver of any rights under this Service Agreement except to the extent stated herein.

i. Client agrees to the provisions described above and the following additional provisions, regardless of whether Client is or is not residing in the United States at the time a controversy arises between EF Hutton and Client: i. Client agrees that any arbitration hearing will be held in Dayton, Ohio unless otherwise agreed between EF Hutton and Client in a signed writing or unless FINRA designates another hearing location; ii. Client agrees to the personal jurisdiction of the courts located in the State of Ohio, U.S.A., to interpret and enforce these arbitration provisions described in this Service Agreement; and, iii. All arbitrations will be held in the English language, unless otherwise agreed to by the parties.

j. Client makes this arbitration agreement on behalf of Client and Client’s heirs, administrators, representatives, executors, successors, assigns, and together with all other persons claiming a legal or beneficial interest in the Account.

32. Premium Service

The Premium Service is an internet-based service that is delivered through the Website but with a different Portal and different tools than the Basic Investing Service. The Premium Service also involves a different style of investing as is described in detail on the website.

The Premium Service provides Specialized Portfolios for investors which include portfolios designed and constructed to generate returns that are sensitive to the outcome of certain events. Events are identified by either the Client or by EF Hutton. The Specialized Portfolios are constructed by EF Hutton and third-party consultants which may include subadvisors engaged by EF Hutton. EF Hutton does not represent or warrant that the Specialized Portfolios will generate any specific return or perform as expected. Clients of the premium service are inherently more active than Clients of the Basic Service by investing in Specialized Portfolios and in taking a view on the outcome of events. Event-driven investing involves a higher risk and requires more Client time, attention and evaluation. Premium Service is not an objective-based investing style as is the case with the Basic Investing Service. Instead, the Premium Service is an opportunistic style.

NOTE: CLIENT ACKNOWLEDGES RECEIPT OF A COPY OF THIS SERVICE AGREEMENT, INCLUDING THE ARBITRATION CLAUSE LOCATED AT SECTION 31 OF THIS SERVICE AGREEMENT.

AGREEMENT EXECUTION

If more than one, all Client principals to this Service Agreement must sign. If any signatory is a fiduciary, the capacity in which he or she is acting should be indicated. This Service Agreement shall be dated as of the time Client enters Client’s electronic signature. Client’s name and electronic signature shall be incorporated by reference to fields through the sign-up process within the Website. EF Hutton Representative approval shall be incorporated by reference to fields captured by EF Hutton’s software systems.

CONSENT AND NOTICE REGARDING ELECTRONIC COMMUNICATIONS

Electronic Signature Agreement

By registering or opening an account to use any services provided by EF Hutton as indicated by your selecting and clicking the “I Accept” or “I Agree” or similarly worded indication of approval and acceptance on the EF Hutton website, you are agreeing to this Electronic Signature Agreement. By selecting “I Accept” you consent to be legally bound by this Agreement’s terms and conditions. You agree your electronic signature is the legal equivalent of your manual signature on any agreement with EF Hutton. You further agree that your use of a key pad, mouse or other device to select an item, button, icon or similar act/action, or to otherwise used in accessing or making any transaction regarding any agreement, acknowledgement, consent terms, disclosures or conditions constitutes your signature (hereafter referred to as “E-Signature”), acceptance and agreement as if actually signed by you in writing. You also agree that no certification authority or other third party verification is necessary to validate your E-Signature and that the lack of such certification or third party verification will not in any way affect the enforceability of your E-Signature or any resulting contract between you and EF Hutton. You also represent that you are authorized to enter into this Agreement for all persons who own or are authorized to access any of your accounts and that such persons will be bound by the terms of this Agreement. You further agree that each use of your E-Signature in obtaining an EF Hutton service constitutes your agreement to be bound by the terms and conditions of the EF Hutton Disclosures and Agreements as they exist on the date of your E-Signature.

2. Consent to Electronic Delivery. You specifically agree to receive and/or obtain any and all EF Hutton related “Electronic Communications” (defined below) via efhutton.com or by e-mail from EF Hutton. The term “Electronic Communications” includes, but is not limited to, any and all current and future notices and/or disclosures that various federal and/or state laws or regulations require that we provide to you, as well as such other documents, statements, data, records and any other communications regarding your customer relationship with EF Hutton. You acknowledge that, for your records, you are able to use EF Hutton to retain Electronic Communications by printing and/or downloading and saving this Agreement and any other agreements and Electronic Communications, documents, or records that you agree to using your E-Signature. You accept Electronic Communications provided via EF Hutton as reasonable and proper notice, for the purpose of any and all laws, rules, and regulations, and agree that such electronic form fully satisfies any requirement that such communications be provided to you in writing or in a form that you may keep.

3. Paper version of Electronic Communications. You may request a paper version of an Electronic Communication. You acknowledge that EF Hutton reserves the right to charge you a reasonable fee for the production and mailing of paper versions of Electronic Communications. To request a paper copy of an Electronic Communication contact us at info@efhutton.com.

4. Revocation of electronic delivery. You have the right to withdraw your consent to receive/obtain communications via efhutton.com at any time. You acknowledge that EF Hutton reserves the right to restrict or terminate your access to efhutton.com if you withdraw your consent to receive Electronic Communications. If you wish to withdraw your consent, contact us at info@efhutton.com.

5. Valid and current email address, notification and updates. Your current valid email address is required in order for you to obtain EF Hutton services. You agree to keep EF Hutton informed of any changes in your email address. You may modify your email address by submitting a written request to EF Hutton, visit a branch location or submit a message through efhutton.com/contact. EF Hutton may notify you through email when an Electronic Communication or updated agreement pertaining to EF Hutton is available. EF Hutton may also use efhutton.com for Electronic Communications. It is your responsibility to use e-mail regularly to check for Electronic Communications and to check for updates to this Agreement.

6. Hardware, software and operating system. You are responsible for installation, maintenance, and operation of your computer, browser and software. EF Hutton is not responsible for errors or failures from any malfunction of your computer, browser or software. EF Hutton is also not responsible for computer viruses or related problems associated with use of an online system.

The following are the minimum hardware, software and operating system requirements necessary to use efhutton.com and receive Electronic Communications:

Web enabled Device with High Speed Internet Capability.

Browser – Any of the modern commercially available browsers with up do date security patches to include but not limited to Microsoft Internet Explorer and Edge, Apple Safari, Mozilla Firefox, Google Chrome and Opera.

7. Use of Third-Party’s for Signature Collection and Verification EF Hutton may engage third-parties such as DocuSign and Cognito to collect and verify customer signatures. You hereby authorize such companies to verify your signature. You hereby agree to cooperate with such companies and to indemnify and hold them harmless with respect to their process of collecting and verifying electronic signatures.

8. Controlling Agreement. This Agreement supplements and modifies other agreements that you may have with EF Hutton on the subject matter of electronic signatures. To the extent that this Agreement and another agreement contain conflicting provisions, the provisions in this agreement will control (with the exception of provisions in another agreement for an electronic service which provisions specify the necessary hardware, software and operating system, in which such other provision controls). All other obligations of the parties remain subject to the terms and conditions of any other agreement.

To obtain electronic services and communications, indicate your consent to the terms and conditions of this Agreement by clicking on the “I Accept” button. It is recommended that you print a copy of this Agreement for future reference.

FULL SERVICE AGREEMENT

______________________________

INSTITUTUIONAL & FAMILY WEALTH

ADVISORY SERVICES

This agreement is available from an EF Hutton Financial Advisor.

Please contact EF Hutton at info@efhutton.com

PRIVACY POLICY

Last updated on May 19, 2017

Index
1. Who We Are
2. Information Collected
3. Information Use
4. Disclosing Information
5. Your Options
6. Data Security
7. Children
8. Service Provider Relationships
9. Changes to this Policy
10. Contacting Us

_____________________

1. Who We Are


EF Hutton Financial Corp. and EF Hutton Investments LLC (“EF Hutton”) operate the website at efhutton.com. EF Hutton Financial Corp and EF Hutton Investments LLC are subsidiaries of EF Hutton America, Inc. We are committed to protecting any data that we collect concerning you. By using our services you agree to the use of the data that we collect in accordance with this Privacy Policy. The purpose of this Privacy Policy is to enable you to understand what personal information of yours is collected, how and when we might use or share your information, and how you can correct any inaccuracies in the information. This Privacy Policy also explains our online information practices and the choices you can make about the way your information is collected and used.

2. Information Collected


We collect the following types of information from you to provide you with the products and services you purchased and for the purposes described below. We may collect any or all of the information via both automated means such as communications profiles or cookies.


Personal Information. The personal information we collect depends on the type of service, support, or sales inquiry, and may include your name, address, telephone number, fax number and email address, dates of service provided, types of service provided, payment history, manner of payment, amount of payments, date of payments, domain name, credit card or other payment information. The financial information will only be used to bill you for the products and services you purchased. If you purchase by credit card, this information may be forwarded to your credit card provider. When transferring personal information a security icon will appear in your browser.


Cookies and Tracking. Your Internet browser has the in-built facility for storing small text files –

“cookies” – that hold information which allow a website to recognize your account. We use cookies to save your preferences and login information, and to provide personalized functionality. We may use cookies to collect, store, and sometimes track information for statistical purposes to improve the products and services we provide and to manage our telecommunications networks. More specifically, we use different types of cookies for different purposes: (i) “required cookies” are necessary for our website to work properly, (ii) “performance cookies” allow us to analyze how Visitors use our website so we can measure and improve the performance of our website, (iii) “functional cookies” allow us to remember choices you may have made on our website, and (iv) “advertising cookies” are used to present ads that are relevant to your interests. We may utilize cookies to track referrals from internal and external affiliates, as well as advertising campaigns. We may also use a third party service provider to send emails that you have agreed to receive. Pixel tags and cookies may be used in those email messages to help us measure the effectiveness of our advertising and to enable us to provide more focused marketing communications to you. You can reject cookies by changing your browser settings, but be aware that this will disable some of the functionality on the EFHutton.com website.


Customer Surveys. We may periodically conduct customer surveys. Participation in our customer surveys is voluntary. However, we encourage our Users to participate in these surveys because they provide us with important information that helps us improve the types of services we offer and how we provide them to you. Your personal information, if provided, will remain confidential, even if the survey is conducted by a third party service provider on our behalf.

Social Media. Our website includes social media features (such as the Facebook “Like” button). These features may collect your IP address and which page you are visiting on our website, and may set a cookie to enable the feature to function properly. Social media features and widgets may be hosted by a third party or directly on our website. Your interactions with these features are governed by the privacy policy of the company providing the feature.


Data and Information Submitted to Third Parties on Our Network. This Privacy Policy does not apply to data or personal information that may be submitted to, or collected by, third-party websites hosted by EF Hutton or to domain names registered by EF Hutton. Such websites and domain names are not owned or controlled by EF Hutton. You should independently evaluate the privacy policies of such third-party websites before submitting data or personal information to them.

Information Use


Personal Information. The information we collect is used for billing and to provide service and support to our customers. We may study this information to determine our customers’ needs and to promote certain products and services or additional support. We may also generate non-identifying and aggregate profiles from information that our customers provide during registration (such as the total number of customers in a given category). This aggregated and non-identifying information may be used to promote advertisements that appear on our website and in connection with our services. Information we collect is used for risk control and fraud detection to comply with laws and regulations.


We take reasonable precautions to prevent unauthorized access to your information. Accordingly, we may require you to provide additional forms of identity should you wish to obtain information about your account details. EF Hutton may also use the information you provide to email EF Hutton’s monthly newsletter to the primary contact e-mail on file, or to contact you about other products or services that we think may be of interest.


Log Files. We use IP addresses to analyze trends, administer our site and servers, track access, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information. However, it is possible that personal information about a customer may be included in the log files due to the normal functions of IP addresses and Web browsing.


Customer Surveys We may use the contact and other information provided to follow up with customers who respond to our customer surveys to help resolve issues internally or with our third party partners. For example, EF Hutton may contact customers based on their survey answers or to highlight certain changes we made in response to customer feedback.

Disclosing Information


Partners and Sponsors. Some of our products or services are offered or promoted to our customers in conjunction with a partner or sponsor, or another brand or company within our corporate family. We may share your information with these parties to offer the product or service or to facilitate your use of additional amenities included with your hosting account. For example, one of our partners may provide services to you based on links that you access from your control panel.
We may also disclose aggregate, anonymous data based on information collected from users to potential partners, reputable third parties and other companies or brands within our corporate family. We will only share your information with third parties that agree to maintain your information in confidence and to use it solely for purposes of providing the product or service as agreed to by EF Hutton.

Service Providers. We may transfer (or otherwise make available) your personal information to third parties that help us provide our services or provide services on our behalf. For example, we may use service providers to authorize and process payments, administer surveys, or run promotions. Your personal information may be maintained and processed by our third party service providers in the United States or in other jurisdictions. Our service providers are given the information they need to perform their designated functions, and we do not authorize them to use or disclose personal information for their own marketing or other purposes.


Online Advertisements. We do not share personally identifiable information about individual customers with advertisers. We may display online advertisements and we may share aggregated and non-identifying information about our customers that we collect through the registration process or through online surveys and promotions with certain advertisers. In some instances, we use this aggregated and non-identifying information to deliver tailored advertisements. For example, an advertiser may tell us the audience they want to reach (e.g.,

males between 25 and 55 years of age) and provide us with an advertisement tailored to the audience. Based upon the aggregated and non-identifying information we have collected, we may then display the advertisement to the intended audience.

Customer Surveys. We may share customer information obtained from customer surveys within EF Hutton and our corporate family, and with trusted third parties to develop or provide products and services that we believe would be of interest to our customers.

Law Enforcement and Special Cases. We cooperate with government and law enforcement officials to enforce and comply with the law. We will disclose any information about users upon a valid request by government or law officials as we, in our sole discretion, believe necessary or appropriate to respond to claims and legal process (including without limitation subpoenas), to protect your property and rights, or the property and rights of a third party, to protect the safety of the public or any person, or to stop activity that we consider illegal or unethical.

Your Options


Correcting/Updating Personal Information. If a customer’s information changes, or if a customer no longer desires our services, we will endeavor to provide a way to correct, update or remove that customer’s personal data in our records. In most cases, this can be achieved via our billing system at https://www.EFHutton.com/billing or by emailing us at info@EFHutton.com.

Opt Out. By default, customers will receive invoices, any system updates, EF Hutton newsletters and other mailings. Customers are able to opt out of newsletters and mailings by using the unsubscribe link in any promotional email or as otherwise provided in the communication.  Please note that customers may not opt out of receiving important system notifications or emails about their accounts.


Public Forums. Please remember that any information you may disclose or post on public areas of our websites or the Internet, becomes public information. You should exercise caution when deciding to disclose personal information in these public areas. To request removal of your personal information from our community forums or testimonials, contact us at privacy@EFHutton.com. In some cases, we may not be able to remove your personal information, in which case we will let you know why we are unable to do so.

Data Security


EF Hutton uses technical security measures to prevent the loss, misuse, alternation or unauthorized disclosure of information under our control. EF Hutton uses security measures including and not limited to: physical, electronic and managerial procedures to safeguard and secure the information we collect online. All sensitive information is collected on a secure server. When we ask customers or users to provide financial information (such as a credit card number) that data is protected using Secure Sockets Layer (“SSL”) technology.

Children

This website is not directed towards children and we do not seek to collect any personal information from children. The services are for people 18 years of age and older. If we become aware that personal information from a child under the age of 13 has been collected, we will use

all reasonable efforts to delete such information from our database.

Service Provider Relationships


In addition to all of the terms and conditions set forth above, the following terms apply to Service Provider (“Provider”) relationships only.


Information Related to Data Collected through Providers. EF Hutton may collect information under the direction of our Resellers, and we have no direct relationship with the individuals whose personal data is provided, processed or obtained by our Providers. Customers who seek access, or who seek to correct, amend, or delete inaccurate data should direct their query to the Provider’s data controller. If the Provider requests that we remove the data, we will respond to such request within thirty (30) business days.


Data Retention. We retain personal data we process on behalf of our Provider for as long as needed to provide services under the relationship. We will retain and use this personal information as necessary to comply with our legal obligations, resolve disputes, and enforce our agreements.

Changes to this Policy


We reserve the right to revise, amend, or modify this Privacy Policy at any time and in any manner. However, if we plan to materially change how we plan to use previously collected personal information, we will provide you with advance notice prior to the change becoming effective and an opportunity to opt-out of such differing uses. We encourage you to periodically review this page for the latest information on our privacy practices.

Contacting Us
You may contact EF Hutton by mail at the address below or send a message to: info@efhutton.com


EF Hutton

One Main Street

Springfield, Ohio 45502
United States of America