Item 5. Fees and Compensation
Fees and other requirements may vary as a result your overall relationship with us, and clients make
payments to ATB CM in their discretion in respect of research services received.
ATB research analysts are not directly compensated based on the sale of securities that may occur
following a client’s use of Research Services; however, the broader compensation pool from which
research analyst compensation is paid is funded in part by equity brokerage commission revenue and
other revenues generated by us or our affiliates.
If you decide to execute trades through ATB based on Research Services, you will incur transaction costs
such as commissions, markups, and/or spreads. We, our affiliates and/or certain of our personnel will
receive fees and compensation for these products and services. You are not required to obtain such
services from us or our affiliates. Such transaction costs are exclusive of any payments made to us in
respect of Research Services.
Clients may but are not required to utilize affiliated broker‐dealers’ brokerage or other affiliated
investment advisers’ investment advisory services. However, clients may elect to use other products or
services available from or through an ATB affiliate. In each such case, the client would pay additional
compensation to us or the relevant ATB affiliate for these additional services. These practices create
potential conflicts of interest that may give ATB CM and our affiliates’ sales representatives an incentive
to recommend other products and services based on the compensation received (whether by the
individual making the recommendation, by the affiliate firm, or both), rather than on your needs. See
section entitled Participation or Interest in Client Transactions for more information about the receipt of
compensation by us or our affiliates for the sale of securities and other investment products. We address
this conflict through disclosure in this Brochure.
We do not manage client assets and do not deduct fees from client assets.
CONDUCTING SECURITIES BUSINESS THROUGH ATB CM OR OUR AFFILIATES
You are neither required to act on any of the information provided through Research Services, nor, as
noted above, are you required to transact business with us if you choose to utilize any information or
implement any strategies, recommendations or other ideas contained in research reports or other
research materials obtained in connection with Research Services.
Research Services are completed upon the delivery thereof. Thereafter, if you choose to implement any
of the investment recommendations or strategies made in Research Services through us or our affiliates,
we will be acting solely as a broker-dealer, not as an investment adviser (unless otherwise agreed in
writing). In executing transactions in accordance with your instructions, we or our affiliates, acting as a
broker-dealer, may act as agent or as principal our own account.
LIMITATIONS ON ATB CM’S ROLE AND RESEARCH SERVICES
We are dually registered as a broker-dealer and an investment adviser, and we offer both brokerage and
investment advisory services. To the extent that we act as an investment adviser in connection with
Research Services, your relationship with us is strictly limited to the provision of Research Services, and
does not extend to any brokerage, or other investment advisory or other arrangements or services that
you may have, or enter into, with us or any of our affiliates. If you desire to engage us for additional
services, whether brokerage, investment advisory or otherwise, you should carefully consider the
differences among these types of services before using them and must enter into a separate agreement
for such services. Any such arrangement will be separate and apart from any relationship created in
respect of Research Services.
We are also a broker-dealer and offer brokerage services to clients, including trade execution, including
through our affiliates. There are important differences between brokerage and investment advisory
services, including the type of advice and assistance provided, the fees charged, and the rights and
obligations of the parties. Brokerage services are regulated under different laws and rules than advisory
services. Among our many obligations as a broker-dealer, we will execute transactions upon your
instruction, deal fairly with you, and make recommendations that are suitable in light of your stated risk
tolerance, financial needs and investment objectives. As an investment adviser, we must act solely in your
best interest, provide certain specific disclosures and generally act in accordance with the standards of a
fiduciary as that term is interpreted under applicable law. Of course, the above is an exceedingly brief
summary, and numerous laws and regulations apply to each capacity as well as to the specific products
or services being provided. It is important for you to understand these differences, particularly when
determining which service or services you might select.
Research reports are prepared solely as of the date indicated therein, and ATB CM does not undertake to
update any written materials we provide to you in connection with Research Services. We do not provide
continuous advice or supervision with respect to any securities that are the subject of Research Services.
Market information is continuously changing, and more current investment advice may be available from
research analysts upon specific request from a client. However, we do not undertake to provide access to
updated coverage and, if provided, such advice may differ materially from that contained in a prior
research report.
SOURCES OF REVENUE
As a broker-dealer, ATB CM offers a wide variety of securities and brokerage services. ATB CM’s principal
sources of income, which include commissions and other compensation for the sale of investment
products, are derived from ATB CM’s business as a broker-dealer.