Reg Bi CRS

Reg Bi CRS

INTERCOASTAL CAPITAL MARKETS INC.
CUSTOMER RELATIONSHIP SUMMARY

INTRODUCTION

Intercoastal Capital Markets Inc. (ICMI) is a full service broker-dealer registered with the United States Securities and Exchange Commission (SEC) pursuant to the Securities Exchange Act of 1934, a member of the Financial Industry Regulatory Authority (FINRA), and a member of the Securities Investor Protection Corporation (SIPC.) 

ICMI provides retail investors like you services in one capacity, where ICMI acts only as a broker dealer that provides brokerage services.

Note that free and simple tools are available to research firms like ICMI and financial professionals including those associated with ICMI at https://www.investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers and investing.

WHAT INVESTMENT SERVICES AND ADVICE CAN ICMI PROVIDE ME?

ICMI and its financial professionals can provide you brokerage services. If you choose to hire ICMI and your financial professional to provide these services, ICMI will establish for you one or more accounts.

Brokerage Services: If you hire ICMI to provide brokerage services, ICMI provides the following:

ICMI provides brokerage, execution, clearing, and custody services via its clearing relationships;

ICMI does not make recommendations that you buy, sell or hold securities; All business with ICMI is unsolicited and at the discretion of the end account and/or retail customer; and

ICMI does not monitor the securities held in your account on any periodic basis (for example, quarterly).

In providing brokerage services, neither your financial professional nor ICMI will provide investment advice in a fiduciary

capacity for special compensation nor in conjunction with brokerages services and will be incidental to ICMI‘s primary business as a broker-dealer, which is selling, buying and holding securities proprietarily for its own accounts at its own risk.

It is your responsibility to make your own investment decisions and manage your account as you determine appropriate. Neither ICMI nor your financial professional exercises discretion over the assets in your account. ICMI buys sells and holds many types of securities including primarily fixed income securities proprietarily for its own accounts at its own risk and neither ICMI nor its financial professionals will recommend any securities to any account holder.

QUESTIONS YOU MAY WANT TO ASK OUR FIRMS FINANCIAL PROFESSIONAL:

Given my financial situation, should I choose a brokerage service? Should I choose a different type of service than what ICMI offers, such as an investment advisory service? Should I choose both types of services? Why or why not?

What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?

WHAT FEES WILL I PAY?

The fees that you will pay depend on the brokerage services used which are illustrated in the following table. Each of these fees is more fully described below.

Types of Fees Brokerage Services
Commission Mark-ups/Mark-downs Yes
Mutual Fund Loads and Contingent Deferred Sales Charges Yes
Mutual Fund 12b-l Fees Yes
Mutual Fund Shareholder Fees & Sub-transfer Agent Fees Yes
Other Fees Yes

Mark-Ups/Mark-Downs: A mark up/mark down is a dollar amount ICMI receives/pays each time it buys or sells a security other than a mutual fund while acting in a principal capacity. These fees are paid from your account. A mark-up is the difference between what ICMI charges you for the security and the security value when ICMI sells to you in a principal transaction. A mark-down is the difference between the price ICMI pays you for the security and the security value when ICMI purchases from you in a principal transaction.

Loads and Contingent Deferred Sales Charges: A dollar amount ICMI’s clearing agent receives each time it purchases or redeems a mutual fund share. These fees reduce the amount of shares you receive when you purchase a funds shares and reduce the number of shares you receive when you redeem the funds shares.

Other Mutual Fund Fees: The 12b-I fees” are fees paid by the mutual funds to ICMI’s clearing agent for funds sold. The mutual funds also pay ICMI’s clearing agent “shareholder servicing fees” and “sub-transfer agent fees” for the provision of other services. 

All of these fees are based upon a percentage of the ICMI client assets invested in the mutual funds. These fees are not paid from your account, but rather are paid from the mutual fund. The result of such fees is that the value of fund shares held in your account decreases.

Other Fees: ICMI will charge fees for services it provides that are apart from the brokerage services we describe above. For example, we charge fees for maintenance of certain accounts, like individual retirement accounts, and to process certain kinds of transactions, like account withdrawals and transfers. 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.

Additional Information: You can find information about fees in ICMI’s Customer Information Brochures and New Account Agreements.

A QUESTION YOU MAY WANT TO ASK ICMI’s 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 ICMI LEGAL OBLIGATIONS TO ME WHEN PROVIDING RECOMMENDATIONS AS MY

BROKER-DEALER? HOW ELSE DOES ICMI MAKE MONEY AND WHAT CONFLICTS OF INTEREST DO YOU HAVE?

ICMI does not provide you or any account with any recommendation as your broker dealer at any time. ICMI buys sells and holds many types of securities including primarily fixed income securities proprietarily for its own accounts at its own risk and neither ICMI nor its financial professionals will recommend any securities to any account holder. ICMI acts in its own best interest in trading proprietarily while also obligated to act in your best interest with regards to ethical responsibility, transparency and market execution. At the same time, the way we make money may create conflicts with your interests. You should understand and ask us about these conflicts.

The following are some examples to help you understand what ICMI means:

Principal Transactions: ICMI may sell securities ICMI owns and ICMI may purchase securities that you own. Such transactions are called principal transactions.ICMI has an incentive to sell securities to you at a higher price that it could get from a person who is not an ICMI customer. ICMI also has an incentive to purchase securities from you at a price lower than it could get from a person who is not an ICMI customer.

Proprietary Products: ICMI may buy a security or product of ICMI or its affiliate. ICMI may have an incentive to do so because ICMI or its affiliate will receive compensation or another benefit.

Revenue Sharing: ICMI may enter into agreements with sponsors of investments that pay us a portion of their revenue.

A QUESTION YOU MAY WANT TO ASK ICMI‘s FINANCIAL PROFESSIONAL:

• How might your conflicts of interest affect me, and how will you address them?

Additional Information: You will find information about conflicts in ICMIs Customer Information Brochures and New Account Agreements.

HOW DO YOUR FINANCIAL PROFESSIONALS MAKE MONEY?

Your financial professional receives an agreed upon percentage of gross revenues he or she generates for ICMI. Revenues include principal markups/markdowns on executions and when your financial professional and ICMI provide brokerage services. The percentage of revenue paid to your financial professional remains constant regardless of transaction volumes or products. As such your financial professional has incentive with regards to total revenues generated in a given period which also benefits ICMI.

DO YOU OR YOUR FINANCIAL PROFESSIONALS HAVE LEGAL OR DISCIPLINARY HISTORY?

Yes. Some of our financial professionals have disciplinary history.

You should go to https://www.investor.gov/CRS for a free and simple search tool to research ICMI and your financial professionals.

A QUESTION YOU MAY WANT TO ASK ICMI‘s FINANCIAL PROFESSIONAL:

• As a financial professional, do you have any disciplinary History? For what type of conduct?

ADDITIONAL INFORMATION

You can find additional information about the services we provide, fees you pay, and conflicts of interest in ICMIs Customer Information Brochures and New Account Agreements. Your financial professional will provide you a copy. 

You may also call 561-939-8282 to request up-to-date information and request a copy of ICMI’s relationship summary.

A QUESTION YOU MAY WANT TO ASK ICMI‘s FINANCIAL PROFESSIONAL:

Who is my primary contact person? Who can I talk to if I have concerns about how this person is treating me?