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:

Proprietary Products — We offer proprietary products, including:
- NM variable annuity and NM variable life insurance products, which have underlying investment options issued and managed by our affiliates.
- NM FDIC Cash Sweep Program, which serves as the default option for our brokerage accounts.
- Private equity funds, which are sponsored by NM, to qualifying clients. All of these products and programs generate revenue for NM, our affiliates and/or us. We are therefore incented to recommend proprietary products and programs over third-party offerings. FRs are required to meet an annual insurance production requirement established by NM.
Third-Party Payments — We receive ongoing distribution and shareholder servicing fees from some mutual fund families. We also receive payments from banks and our clearing firm in connection with the cash sweep products we offer. We are incented to recommend funds that pay these ongoing fees and to maintain these cash sweep arrangements to increase our revenue.
Revenue Sharing — We receive additional revenue from certain mutual fund families and from our clearing firm when our or our affiliate’s clients invest in mutual funds issued by those mutual fund families. We are therefore incented to recommend mutual funds for which we receive revenue sharing over other fund families where we do not receive such revenue.

More detailed information about our conflicts of interest is available at NorthwesternMutual.com/assets/pdf/brochures/ guide-to-brokerage-services.pdf.

NORTHWESTERN MUTUAL INVESTMENT SERVICES

Franklin, WI 53132

Dawn Marie Kalinowski

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