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CUSTOMER RELATIONSHIP SUMMARY BROKERAGE SERVICES
(Form CRS)

Effective 6/30/2020

Item 1: Introduction
Lafayette Investments, Inc. ("Lafayette" or "the Firm") is registered with the Securities and Exchange Commission as both a broker-dealer and an investment adviser. Brokerage and Investment advisory services and fees differ. It is important for you to understand the differences. This document discusses our brokerage services. We do not offer brokerage services to new advisory clients. Free and simple tools are available for you to use at www.Investor.gov/CRS , a website maintained by the SEC. These tools can provide you with educational materials about broker-dealers, investment advisers, and investing.

Item 2: Relationships and Services
What investment services and advice can you provide me?

Brokerage Services:
If you open a brokerage account, you will pay us a commission, every time you buy or sell an investment. You select investments, or we recommend investments for your account, but the ultimate investment decisions are yours. It is important for you to understand we do not provide ongoing monitoring of investments in brokerage accounts. We offer brokerage services with a variety of investments including stocks, bonds and other fixed-income investments, mutual funds, and exchange-traded funds ("ETFs"). We do not offer all products available in any given investment category, and do not offer proprietary investment products. For more detailed information about our brokerage services and the investment products that we offer, please visit the Important Disclosures page on our website www.lafayetteinvestments.com and refer to our Regulation Best Interest Disclosure.


Conversation Starters: Ask your financial professional

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?


   

Item 3: Fees, Costs, Conflicts and Standard of Conduct
What fees will I pay?

You will pay a transaction-based fee, referred to as a commission or sales charge, every time you buy or sell an investment. The fee is based on the specific transaction and not the value of your account. With stocks, ETFs, or mutual funds the fee is usually a separate charge which is added to or subtracted from the transaction amount and is determined by the quantity of the securities bought or sold, the dollar value of the transaction, or a combination of both. With other investments, such as bonds, the sales charge is usually part of the price you pay for the investment, referred to as a "mark- up" or
"mark-down".


What Sets Us Apart

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?


Some investments (including mutual funds) impose additional ongoing expenses such as internal management fees and distribution expenses. Theseincrease the overall cost and will reduce the value of your investment over time. Our commissions on investment products vary. The amount you pay in connection with any investment product will vary depending on the type of investment, how much you buy or sell and what kind of account you have. Other miscellaneous fees which are standard and customary include custodial fees, account maintenance fees, fees related to mutual funds, and transfer fees. For Additional Information please see our Regulation Best Interest Disclosure on our website www.lafayetteinvestments.com.

You will pay fees and costs whether you make or lose money on your investments, and regardless of which type of account you select. Fees and costs will reduce any amount of money you make on your investments over time. Please be sure that you understand what fees and costs you are paying.

   

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 can affect the recommendations we provide you. Here are some examples to help you understand what this means.


What Sets Us Apart
Quetions to ask when
considering our services:

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


We are compensated directly by customers, and/or indirectly from the investments made on your behalf. You are charged a commission or sales charge on every transaction. Since we receive compensation on every transaction, we have an incentive to encourage you to trade more often.
We utilize the services of a "clearing broker" to execute purchases and sales and process payments and other transactions. We receive various benefits in connection with our clearing firm relationships for brokerage business and we retain a portion of certain fees charged to your accounts that exceed the amount we are charged by our clearing firm.
We clear securities transactions through Wells Fargo Clearing Services, LLC ("First Clearing" or "FC"). When FC is the executing broker/dealer, we receive a portion of the fees or charges applicable to the transaction. By directing brokerage transactions to FC, we may not be able to achieve the most favorable execution (best price) for customer transactions, which would cost you more money. This creates a conflict of interest.

We are compensated by FC with respect to balances in the Cash Sweep Program. This creates an incentive for us to recommend that you leave uninvested cash in a Cash Sweep/ Money Market product.

When you purchase certain investments from us, such as fixed income securities, we usually engage in principal trading. We will sell investments to you and/or buy investments from you from our own accounts and charge a mark-up or mark-down.

For more specifics on our fees and the Cash Sweep Program, please visit the Important Disclosures page on our website www.lafayetteinvestments.com, and refer to our Regulation Best Interest Disclosure.

How do your financial professionals make money?
Our financial professionals receive a portion of the compensation that you pay us and indirectly from the investments made. The type and amount of compensation varies by product type (stocks or mutual funds, for example), by the size of the investment and by the services provided. Compensation usually includes upfront commissions or sales charges, mark-ups for bonds and ongoing compensation for products, such as mutual funds ("12b-1 fees"). Their compensation is not based on the time and complexity required to meet a client's needs. Our professionals that provide other services directly to our firm also receive compensation based on a fixed annual salary.

Item 4: Disciplinary History
Do you or your financial professionals have legal or disciplinary history?
No financial professionals have legal or disciplinary history. Please go to www.Investor.gov/CRS for a free and simple search tool to research us and our financial professionals.


Conversation Starters: Ask your financial professional

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

   

Item 5: Additional Information
You can view additional information about our brokerage and investment advisory services at our website
www.lafayetteinvestments.com. You can request up to date information and a copy of our Customer Relationship
Summary by contacting us at 301-570-2959 or by email at info@lafayetteinvest.com.


Conversation Starters: Ask your financial professional

Who is my primary contact person? Is her or she a representative of an investment adviser or broker-dealer? Who can I talk to if I have concerns about how this person
is treating me?


 

 

 

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Lafayette Investments is registered with the Securities and Exchange Commission as an investment advisor and a broker-dealer.