Disclosures Relating to Regulation Best Interest

The Securities and Exchange Commission enacted Regulation Best Interest, which establishes a new standard of conduct under the Securities Exchange Act of 1934 for broker-dealers and natural persons who are associated persons of a broker-dealer when making a recommendation of any securities transactions or investment strategy involving securities (including account recommendations) to a retail customer.

There are many important disclosures that you should review on an annual basis. 

Westport Capital Markets, LLC - Form CRS Relationship Summary – October 21, 2020

Westport Capital Markets, LLC is a broker-dealer and an investment adviser registered with the Securities and Exchange Commission (“SEC”) and is a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”).  We are also a licensed insurance producer registered with various states.

  • 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 broker-dealers, investment advisers, and investing.

What investment services and advice can you provide me?

We offer both brokerage and investment advisory services as well as insurance products. The type of account will be discussed with you before you open any type of account with us.

    Our brokerage services services include buying and selling securities at your direction and providing you with investment recommendations, financial tools and planning services and investor education from time to time or at your request.  Through our clearing firm, National Financial Services (“NFS”), we offer mutual funds, exchange traded funds (“ETFs”), unit investment trusts (“UITs”), domestic and international equities, options, fixed income securities, certificates of deposit (“CDs”) and structured notes, syndicate issues and variable annuities. We do not provide ongoing monitoring of your brokerage account and you make the ultimate decision regarding the purchase or sale of investments. We will review your account prior to making any recommendations.

    Our advisory services include our asset allocation services using stocks, bonds, mutual funds, ETFs, options, fixed Income securities, individually managed portfolios and portfolios managed by third-party investment managers. Depending on which program you select, our asset allocation services are either “non-discretionary” or “discretionary”—meaning that either we will recommend investments to you and you will make the ultimate decision regarding the purchase or sale of investments (non-discretionary), or we will make the ultimate investment decisions without your consent (discretionary). The third-party managers we make available to you will invest your account on a discretionary basis using mutual funds, ETFs, and other securities. All of our advisory services are offered on a quarterly-fee basis and either we or the third-party manager will monitor your advisory account and investments on an ongoing basis as part of your standard services.  Monitoring services include, but are not limited to, asset allocation, suitability, account performance and analysis based on overall financial conditions.  If you want to limit the types of investments made in your account you will need to provide those limitations to us in writing

We do not have any material limitations on account size or the type of investments we can offer to our clients.
For additional information, please see please see Best Interest Disclosures, Form-ADV, Form ADV2-4, Form ADV2-7, Conversation Starters

We also offer a variety of insurance products, including variable, fixed and immediate annuities and life insurance. The products are purchased directly through the insurance company and are not monitored by us.  These products are available to brokerage clients, advisory clients or as a stand-alone investment.  www.westportcapitalmarkets.com/insurance.  


  • Given my financial situation, should I choose an investment advisory service? Should I choose a brokerage service? Should I choose both types of services? 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?

The fees you pay depend on whether you choose brokerage services, advisory services, insurance services or a combination of services.

For brokerage services, the primary fees and costs are transaction-based fees for recommendations, as well as execution of securities trades. Depending on the investment product you select, these fees can include up-front commissions, as well as fees that are charged on an on-going basis for as long as you hold the investment (“trails”). Because we are compensated for each transaction in your account, we have an incentive to encourage you to trade more frequently and in greater amounts.

You will also pay fees for custodial or administrative services, as well as fees and expenses that are included in the expense ratios of certain of your investments, including in mutual funds, ETFs, and variable annuities.

For advisory services, the primary fees and costs are the “investment advisory fee”. This fee is “asset-based” meaning that the fee is calculated as a percentage of the assets invested in your advisory account according to the fee schedule in your written advisory agreement with us.   This means that the more assets you invest in your account, the more you will pay in advisory fees, and therefore we have an incentive to encourage you to increase your advisory account assets. In addition, some clients pay a ticket charge for each transaction in their account and some do not.

Our clients pay the advisory fee each quarter which is based upon the value of each client’s assets under management. The fee is charged quarterly in advance and is based upon the assets under management as of the first day of each calendar quarter.  If the account was only open for part of the quarter, a prorated fee will be charged.  ADV2-5

You may also pay miscellaneous fees that NFS, your account’s custodian, may charge, account transfer fees, bank charges and other fees, as well as fees and expenses that are included in the expense ratios of certain of your investments, including in mutual funds and ETFs.

For Advisory Services, please see www.westportcapitalmarkets.com/ADV, www.westportcapitalmarkets.com/Part2A-brochurewestportcapitalmarkets.com/advisory-agreements, www.westportcapitalmarkets.com/best-interest-disclosures, www.westportcapitalmarkets.com/conversation-starters.

You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce the amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.

For additional information about the fees and costs for our brokerage services, please see www.westportcapitalmarkets.com/commission-schedule, www.westportcapitalmarkets.com/best-interest-disclosures.

For Insurance Services, the fees and costs depend on the specific product that you select and any riders or additional features that are on the contract.  www.westportcapitalmarkets.com/insurance.


  •  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 as my broker-dealer or when acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have?

When we provide you with a recommendation as your broker-dealer or act as your investment adviser, we have to act in your best interest and not put our interests 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 can affect the recommendations and investment advice we provide you. Here are some examples to help you understand what this means. 

  • Mutual Funds: If you are a broker-dealer client we receive part of the commissions that are charged on mutual funds as outlined in the prospectus.  You should review the prospectus prior to investing in any mutual fund. We have an incentive to choose funds with higher payouts, which is a conflict of interest.
  • Third-Party Payments: We receive payments on a portion of the fees that are charged by our clearing firm, NFS.  These include part of the service fee charged on each trade, 12b-1 fees on some money market funds and mutual funds (for broker-dealer clients only), margin debits, credit interest, transfer fees and where negotiated with the client, ticket charges. We have an incentive to place more trades in broker-dealer accounts, and recommend the use of funds and margin accounts.
  • Revenue Sharing: We receive a portion of the fees that are charged by outside investment managers and, therefore, have an incentive to recommend certain managers.
  • Syndicate: When, as a broker-dealer client, you purchase a security through a primary offering, such as an initial public offering (“IPO”), or secondary offering, there is a selling concession built into the price you pay for the security.  We receive a portion of this concession, which could be higher than the commission you would pay to purchase the security in the market, so we have an incentive to recommend purchasing securities through an offering. 
  • Insurance Products: We receive a portion of the commissions charged on all insurance products from the insurance company. Insurance products usually have a higher commission than other products and, accordingly, provide us with an incentive to favor these products. However, for clients who need the features provided by insurance products, they can be in your best interest and cost is not the only factor to consider.


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

For additional information, please see www.westportcapitalmarkets.com/best-interest-disclosures, www.westportcapitalmarkets.com/form-ADV

How do your financial professionals make money?

Financial professionals associated with our advisory services receive a portion of the management fee that we receive on the assets we manage for you. The more your portfolio grows, whether because of market performance or additional assets under management, the greater our compensation will be.
Financial professionals associated with our brokerage services are compensated by a portion of the commissions paid on the transactions they recommend or execute for you as well as mutual fund trails. The more trades that are done the more this professional earns in commissions.
Some of the professionals described above are also insurance registered and will receive commissions from the carrier for selling life insurance products as well as trailing compensation. The more revenue that these professionals generate for our firm the higher the payout percentage will be.

Do you or your financial professionals have legal or disciplinary history?

Yes. Visit Investor.gov/CRS for a free and simple search tool to research us and our financial professionals.


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

For additional information about our services, see www.westportcapitalmarkets.com. We will provide upon request a copy of this relationship summary and any other documents posted on our website.  Please call Christopher McClure 203.222.8933 or email Chris@westportcapitalmarkets.com.


  • 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 I have concerns about how this person is treating me?