Customer Relationship Summary
MHL Investments is registered with the Securities and Exchange Commission (SEC) as a broker-dealer and is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). Brokerage and investment advisory services and fees differ, and it is important for you to understand these differences. Free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about brokerdealers, investment adviser, and investing.
WHAT INVESTMENT SERVICES AND ADVICE CAN YOU PROVIDE ME?
We offer brokerage services to retail investors, including buying and selling securities in an agency capacity only. We do not open brokerage accounts as is generally understood in the securities industry. Rather, as agent, we help you to either purchase or sell a limited number of investment types: Mutual Funds, Variable Insurance Products, and Private Placements of securities. We offer only nondiscretionary services, which means the retail investor makes the ultimate decision regarding the purchase and/or sale of investments. While our registered representatives will recommend investments, these investments are not monitored on an ongoing basis.
- Because we don’t open accounts as is generally understood in the securities industry, we refer to “account opening minimums” as investment minimums. Mutual Funds, Variable Insurance Products, and Private Placements may have their own investment minimums or no minimums. While we can inform you of those investment minimums, you should also review the appropriate Mutual Fund and/or Variable Insurance Products prospectuses, or the Private Placement documentation for more information. Our firm does not impose our own investment (account opening) minimums, nor do we impose greater investment
minimums for Mutual Funds, Variable Insurance Products, or Private Placements. However, depending upon your investment objectives, we may recommend an investment amount greater than the investment minimum required by the Mutual Fund, Variable Insurance Product, or Private Placement.
- As a customer of ours, you may select investments, or we may recommend investments to you. However, the ultimate investment decision as to your investment strategy and the purchase or sale of investments will be yours. Please note that Private Placements are unregistered securities and are generally illiquid investments.
- We do not maintain nor offer for sale or purchase any proprietary products. Our firm does not offer products in a principal capacity.
Additional Information : Mutual Funds – We generally do not recommend the purchase of new mutual funds. However, we may accommodate clients with existing mutual fund positions by adding additional investments to existing accounts or by setting up additional accounts with an existing fund family for their convenience. Variable Insurance Products – We offer variable insurance products that offer additional safety to consumers such as downside protection, guaranteed income, and/or tax deferral. Private Placements – We offer private placements as a component of a diversified portfolio. We seek to recommend investments that are timely and meet basic needs of investors, such as housing and energy. We are particularly interested in opportunities that also provide a tax incentive to investors.
Conversation Starters.Ask your financial professional
- Given my financial situation, should I choose a brokerage service? Why or why not?
- How will you choose investments to recommend to me?
- What is your relevant experience, including your licenses, education, and other qualifications? What do these qualifications mean?
WHAT FEES WILL I PAY?
You will pay the following transaction-based fees (commissions):
- Mutual funds – you will pay a sales charge on purchases. You will also pay an expense for the management of the mutual fund, maintenance fee, 12b1 service fees, and custodian fees. These fees are product specific. Please see applicable prospectus. A potential conflict may arise as the more money you have invested in a mutual fund company the sales charge reduces. We would be paid higher sales charges if money were spread between multiple mutual fund companies.
- Variable Insurance Products – you will pay a commission to purchase an annuity. You will also have expense charges and 12b1 service fees associated with your annuity. These fees are product specific. Please see applicable prospectus. A potential conflict may arise because differing share classes may compensate the registered representative more than other share classes.
- Private Placements – you will pay a commission on the purchase of a private placement. The amount will depend on the offering. There will also be other expenses associated with the purchase. Please see offering memorandum for more information. If you establish a relationship with our firm as an investor, which we refer to as a customer, in a private placement offered by our firm on behalf of an issuer of securities, we generally will not charge you a fee, as it is the issuer who will generally pay us a transaction‐based fee, most often referred to as a commission, every time a private placement transaction closes. Such fee would be based on a percentage of the funds we raised from you and, if applicable, other investors. You should be aware that whether directly or indirectly, a part of the funds you invest in a private placement may be used by the issuer to pay some or all of our fee. You should confirm with the issuer directly and also refer to the private placement documentation you are provided to further ascertain how your funds shall be used by the issuer. A potential conflict may arise if a private placement issuer would pay us a greater percentage of the funds we raise based on the amount we raise.
Additional Information: You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying. In addition to commissions, we are compensated with servicing fees, often called 12b-1 fees, from mutual funds and variable annuities. Depending upon your custodian (where your securities and funds are kept) you may pay separate custodial fees charged by the custodian. It is important that you are aware that a portion of the amount of you invest is used to pay our firm or to cover costs directly charged by the product sponsor, or custodian, or, in the case of a private placement, by the issuer of the security. Some variable products, such as, variable index annuities, may have no express fees but rather a cap on the the percentage of the annuity’s performance.
Conversation Starter. Ask your financial professional — Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?
WHAT ARE YOUR LEGAL OBLIGATIONS TO ME WHEN PROVIDING RECOMMENDATIONS?
HOW ELSE DOES YOUR FIRM MAKE MONEY AND WHAT CONFLICTS OF INTEREST DO YOU HAVE?
When we provide you with a recommendation, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they affect the recommendations, we provide you. Here are some examples to help you understand what this means.
- A potential conflict may arise as the more money you have invested in a mutual fund company the sales charge reduces. We would be paid higher sales charges if money were spread between multiple mutual fund companies.
- A potential conflict may arise because differing share classes may compensate the registered representative more than other share classes
- A potential conflict may arise if a private placement issuer would pay us a greater percentage of the funds we raise based on
the amount we raise.
Additional Information: Some issuers of private placement securities may pay to our firm a fee, called a “dealer allowance” in many instances, which act to offset the costs we may incur in offering the issuer’s product.
Conversation Starter. Ask your financial professional — How might your conflicts of interest affect me, and how will you address them?
HOW DO YOUR FINANCIAL PROFESSIONALS MAKE MONEY?
The firm’s financial professionals are compensated by a percentage of the revenue the firm earns from the financial professionals’ recommendations. This revenue comes from the same product commissions our firm makes as described above. Our financial professions are not compensated on the amount of client assets they service independently of the commissions earned, nor is compensation based on the time and complexity required to meet our customers’ needs
DO YOU OR YOUR FINANCIAL PROFESSIONALS HAVE LEGAL OR DISCIPLINARY HISTORY?
YES. We currently have legal or disciplinary events.
- Visit Investor.gov/CRS for a free and simple search tool to research our firm and our financial professionals. For additional information about our registered representatives and services, visit Investor.gov/CRS, and BrokerCheck (BrokerCheck.Finra.org).
- To report a problem to the SEC, visit Investor.gov or call the SEC’s toll‐free investor assistance line at (800) 732‐0330. Call 301-590-6500 to report a problem to FINRA.
Conversation Starter. Ask your financial professional—
- As a financial professional, do you have any disciplinary history? For what type of conduct?
For additional information about our services
If you would like additional, up-to-date information or a copy of this disclosure, contact us in writing at:
Everspire Plaza, 6900 S. 900 E., SUITE 200, Midvale, UT 84047.
You may call us at 801-545-8706
Conversation Starter. Ask your financial professional—
- Who is my primary contact person? Is he or she a representative of an investment adviser or a broker-dealer? Who can I talk to if Ihave concerns about how this person is treating me?