Join the Next "Monthly KFN Updates" October 3rd at 11amEST

Mark your calendar to join us on Thursday, October 3rd for the next "Monthly KFN Updates" conducted by our Co-Founder & CEO, Brian Kovack.

These calls will occur on the first Thursday of each month from 11:00am-11:15amEST. Should you be unable to attend, a recording of the call will be available.

Please click the link below to join the call on October 3rd at 11am.

https://kovacksecurities.zoom.us/j/81304841657?pwd=nvv7NIft7UVKYX3kNh9N7CWwqnTDBQ.veGP26dnPC5xiI3e

Webinar ID: 813 0484 1657

Passcode: 626918

You can dial in using your phone

United States: +1 (646) 931-3860 or +1 (305) 224-1968

Updated Form CRS Now Available

As of September 19, 2024, Form CRS has been updated. This version is now available on the Kovack InTouch website as well as in Docupace/Tracker BI. Please update your files and make sure to send this most recent version of the Form CRS.

National Conference App Goes Live Next Week

We are excited to announce that the Conference App will be going live next week. If you have registered for the National Conference you will receive an email from Cvent. This is a legitimate email and we ask that you follow the steps to download the App prior to the Conference. The App will allow you to see the agenda and personalize your own schedule. As well as view the speakers and sponsors. The App is needed to check-in for each session and confirm your attendance at the Annual Compliance Meeting on Tuesday morning.

Below is a screenshot of the email you will receive:

Employee Spotlight: Fernando Pardo

Fernando Pardo joined Kovack Financial Network just over a year ago as the Anti-Money Laundering (AML) Compliance Officer. In this role, he ensures the firm stays compliant with AML regulations, while also overseeing AML and Continuing Education (CE) training for employees and advisors, focusing on Regulatory and Firm Element CE requirements. Additionally, Fernando manages client pre-vetting, conducts Enhanced Due Diligence (EDD) reviews, and monitors transactions. Recently, Kovack launched its municipal advisory subsidiary, Kovack Municipal Group LLC, where Fernando serves as Chief Compliance Officer and Principal, responsible for its regulatory compliance mandates.

Fernando brings extensive experience, having begun his career in Risk Mitigation at what is now Ameriprise Financial in Minneapolis, before eventually transitioning to AML Compliance while ultimately transitioning to StoneX Financial, first in Chicago and now in South Florida. His work at StoneX spanned the futures commission merchant (FCM) division, swap dealer division, and institutional and retail LATAM brokerage divisions across equities and fixed income trading desks. Fernando holds several licenses, including Series 3, 4, 7, 24, 50, 52, 53, 54, 57, 63, 65, and 99, and is a Certified Anti-Money Laundering Specialist (CAMS) and Certified Global Sanctions Specialist (CGSS) through ACAMS.

Born in Bogotá, Colombia, Fernando moved to Fort Lauderdale as a baby and returned to Bogotá at age 12. He moved back to the U.S. at 18 to attend Guilford College in Greensboro, North Carolina, where he earned dual degrees in Political Science and Business Management.

Fernando loves the cooler seasons, having lived in cities that offer unique autumn and winter experiences. He explored ice fishing and cross-country skiing in Minnesota, embraced Chicago’s rich cultural diversity, and joined his family in Atlanta before returning to Chicago, which he calls a “foodie’s paradise.” Work and family eventually brought him back to Florida, where his fluency in Spanish was an asset and where he and his partner’s Cuban family hail from.

Thanksgiving is Fernando’s favorite holiday, and he dreams of visiting Vermont or Michigan’s Upper Peninsula to experience the fall foliage. One of his favorite travel spots is Door County, Wisconsin, where he highly recommends visiting Al Johnson’s Swedish restaurant in Sister Bay—not only for the food but also for the goats grazing on the roof!

2024 Fidelity Annual Maintenance Fee for IRA Accounts - Important dates

September month-end account statement – Customer Notification – Accounts meeting the billing criteria will receive a fee notice on the September account statement.

November 1-15, 2024 – Pre-Collection Period - Retirement accounts that have instructions on file to pay the annual maintenance fee from the options listed below will have the fee deducted from the account.

• Nonretirement brokerage account via journal
• Bank account via 1st party Electronic Funds Transfer (EFT)

November 18, 2024 - Collection Day - Unpaid fee are collected from core account.

February 1, 2025 - Fee postings that have not been satisfied will be reversed and the representative of record will be charged for the remaining amount due.

NFS Cash Management Enhancements

The Cash Management debit card has been enabled with Original Credit Transactions (OCT) to receive money transfers. OCT is a VisaNet financial transaction that allows enabled service providers/merchants to transfer money into a client’s brokerage account using their Cash Management Visa debit card. These transfers can only be credits to a brokerage account and cannot be used to transfer money out. Funds are debited from the service provider/merchant and credited into the brokerage account in under 30 minutes. Service provider/merchant fees may apply.

What are some examples of money transfers using OCT?

• Digital Wallets/Payments – Venmo/Apple/Google
• Insurance Claims
• Corporate Rebates
• Contractor Payouts
• Government Disbursements
• Gambling/lottery Payouts
• Cannot be used for purchases of goods or services and return credit/refunds

What are potential benefits of using OCT?

• Speed – OCTs will be under 30 minutes where traditional ACH/EFT are 1 to 3 days
• Convenience – Funds are almost immediately available and no need to deposit a check or get your checking        account information. Transfers can be made 24 hours day and 365 days a year, regardless of holidays/weekends.
• Security – OCTs leverage the Visa networks security infrastructure

The use of OCT is dependent on if the service provider/merchant is using OCT. For example; if a user has an eligible OCT debit card in Venmo, Venmo will provide the option to Instant transfer funds that uses OCT to transfer the money. 

What are the OCT limits?

Zelle® App Enabled

The Cash Management debit card has also been enabled to be used within the Zelle® app. Using the Zelle® app a card holder will only be able to send/receive money with other Zelle® users who’s banking institution is within the network**. Cardholders will have a limit of sending $500 and receiving $5000 per week that resets each Sunday.

**Fidelity is not part of the Zelle® network so card holders will not be able to transfer with any other individual who is not part of the network.

The attached image shows an example of an OCT enabled merchant. Venmo has a feature called Instant transfer that uses OCT and shows when an OCT enabled debit card has been added.

Click here for the steps to set up the Zelle® app.

Due Date Recap



As the end of the year draws near, several deadlines are approaching. Below is a summary of those important dates.

September 30th--Deadline to pay monthly fees through E-bill. (click here for details)

October 3rd--"Monthly KFN Updates" at 11am (click here for details)

October 31st --Deadline to complete IAR CE Courses (click here for details)

October 31st --Deadline to complete the Investment Advisor CE Module in Select States (click here for details)

October 31st --Deadline to make any changes to your state registrations by emailing Dawn Bliss at dbliss@kfn.com (click here for details)

October 31st --Deadline to pay monthly fees through E-bill.

October 31st --Deadline to complete the My Compliance Office Task regarding 2025 FSI membership. (click here for details)

November 7th--"Monthly KFN Updates" at 11am (click here for details)

November 18th --Payment due for National Financial Annual Maintenance Fee for IRA Accounts. (click here for details)

November 18th --National Financial and IWS Annual Alternative Investment Custody & Valuation Fee applied to accounts with eligible positions. (click here for details)

November 29th--Deadline to pay monthly fees through E-bill.

November 30th-- Deadline to complete the online Firm Element CE (click here for details) (click here for details)

December 2nd --The FSI Renewal Fee of $199 is charged in addition to the FINRA Renewal Fees.

December 2nd--Deadline to make any changes to your Outside Business Activities (OBA) through My Compliance Office. (click here for details)

December 5th--"Monthly KFN Updates" at 11am (click here for details)

December 6th --Deadline to make any registration updates before FINRA's CRD system shuts down for the year. Contact Dawn Bliss at dbliss@kfn.com

December 13th --Deadline to pay FINRA Renewal Fees and FSI Renewal Fee through E-bill.

December 20th --FINRA's CRD System is shut down for the remainder of the year.

December 31st--Deadline to pay monthly fees through E-bill.

December 31st --Pershing & National Financial Inactivity Fee deadline.

December 31st –Deadline to complete the online Annual Compliance Meeting

Kovack Securities State Registration

Annual Renewal Fee

Changes Due by Oct. 31st



If you have changes to your state registration you must notify Dawn Bliss in the Registration Department at dbliss@kfn.com by October 31st. Please remember that you must be registered in any state in which you have a current client or intend to solicit new clients.

To view the list of states you are currently registered in, login to KSI InTouch 4.0, click on the My Info tab, then click on "State" within the Licenses box.

Outside Business Activity Update

Changes Due December 2nd

In order for the Home Office to have an accurate listing of your OBAs, we ask that if you have had any OBA changes this year that haven’t been disclosed to Compliance, that you visit My Compliance Office prior to December 2nd.

In order to disclose an additional OBA, log onto My Compliance Office (MCO) and fill out an Outside Business Activity Form.

To remove an OBA, log onto My Compliance Office (MCO) and complete the OBA Removal Request Form.

Notice of Upcoming Mailing of Updated Options Disclosure Document (ODD) & Important Compliance Reminders

We would like to inform you that Kovack Securities, Inc. will be conducting a mailing to all customer accounts currently approved to trade in options. This mailing is to distribute the most recent update of the Options Disclosure Document (ODD), revised in June 2024.

This communication is to ensure you are aware of the forthcoming distribution before the mailing process begins. The mailing will commence shortly after the publication of this notice in the Kovack News.

Important Compliance Reminders:

New Accounts for Options Trading:

• For any new accounts approved for options trading moving forward, please ensure that a copy of the ODD is provided to the customer.
• Reps are required to retain a copy of the ODD delivery email sent to the client or document in writing in their notes when and where they met with the client to deliver any updated version of the ODD.
• This documentation is crucial for maintaining accurate records in accordance with regulatory requirements.
• Reps must be able to provide evidence of any ODD delivery upon request by the Kovack Compliance Department, any regulator, or auditor.
• Evidence could include any of the following:
• An email sent to the client by the rep with the ODD attached.
• A note in the client's records confirming the ODD (and which version specifically) was delivered in person, including the date and time of the meeting details.
• An email confirmation from the rep to the client attesting that they have provided the most recent ODD.

ODD Updates:

• This process needs to be followed each time the ODD is updated by the Options Clearing Corporation (OCC). It is crucial to ensure that our clients receive the most current information about the risks associated with options trading.
• Reps are reminded to retain documentation of ODD delivery for all new accounts submitted for approval to trade options.

We appreciate your cooperation in ensuring compliance with these procedures. Your diligence in maintaining accurate and up-to-date records is vital to our firm’s regulatory obligations and to providing excellent service to our clients.

Should you have any questions or need further clarification, please contact the firm’s ROPs Supervisory Committee by emailing ROPs@KFN.com.

Brokerage Summary

As we head into the last few months of the year, we tend to get an increase in communications from our clearing firms. To consolidate the information we have created this Brokerage Summary page.

• Fidelity (NFS and IWS) - 2024 Alternative Investments Annual Fee Assessed November 18, 2024
• Fidelity Required Minimum Distribution Notification Change
• FIDELITY (NFS/IWS) - South Carolina Adopts the Uniform Transfers to Minor Act (UTMA)
• NFS Premiere Select® SIMPLE IRA Annual Summary Description Mailing 
• NFS/Fidelity State Escheatment – Fall 2024



• NetX360® Version 1801 To Be Discontinued on October 10, 2024
• Pershing Unrelated Business Taxable Income (UBTI) Reporting
• Important Fraud Prevention Information from Pershing

Global Relay Texting and WhatsApp Tutorial Now Available

As we announced last November, Kovack Financial has teamed up with Global Relay to bring texting and WhatsApp applications to all our Financial Professionals and staff. It is a Compliance requirement that ALL Financial Professionals use the Global Relay App. You received an email with step-by-step instructions to download the App. We are pleased to announce that a recording of the Global Relay Texting and WhatsApp training session is now available and can be found by clicking HERE.

The video, as well as a PDF of the presentation, is available on the Kovack website under Business Support>Available Technology>Global Relay.

If you have any questions please contact Kendrea Lopez at klopez@kfn.com or Regina Schumaker at rschumaker@kfn.com.

Need to Get Appointed with an Insurance Carrier? Need to Add a Line of Authority? New Training Videos are Available!

Whether you are new to Kovack or just need to add a new insurance appointment, SuranceBay is the quickest and easiest way to get appointed.

Carriers all ask for the same information on prospective producers: demographic info, licenses, background questions, E&O insurance details, etc. With SureLC™, it takes a producer an average of 7 minutes to input this information. But once it is entered, it does not need to be done again and the producer is then ready to request carrier-contracting paperwork for any of the 460+ different carriers that SureLC™ supports. Approved producers can then use this portal to submit changes, making sure agencies have your most up-to-date information on hand at all times.

Benefits and Features

• Saves you time by auto-populating your information from third-party sources such as:
• NIPR
• LIMRA
• ClearCert
• State Licenses
• Comprehensive transmittals: Includes all requisite transmittal forms for each carrier
• Automatic updating of all carrier contracting paperwork
• Imaging: Optical character recognition and image recognition enabling uploaded documents to be recognized and auto-sorted in a matter of seconds
• 100% paperless e-Signature support

Please click here for instructions on how to register for a new SureLC account with Kovack Securities.

Please see below for support resources.

• Apply for a Non-Resident License/Add a Line of Authority
• SureLC for Producers - How to Purchase a Non-Resident License and/or Add a Line of Authority to an Existing License
• Help Center Training Videos **NEW**

The below support articles have additional information on Purchasing/Renewing a License through SureLC.

• License Return Policy
• What fees does SuranceBay charge for State Licenses
• SuranceBay Producer Licensing FAQs

If you have any questions, please contact Debbie Eppolito at (954) 670-8703 at deppolito@kfn.com.