Description of Firm We are an Iowa corporation headquartered in Davenport, Iowa. We were founded in 1979 as a securities broker-dealer firm and are currently registered as a broker-dealer with the Securities and Exchange Commission as well as all 50 states and the District of Columbia. We are a member of the Financial Industry Regulatory Authority ("FINRA"). In 1991 we registered with the SEC as an investment adviser. We are a closely held corporation with no shareholder owning 25% or more of our stock. Because we are registered as both an investment adviser and broker-dealer and are licensed as an insurance broker, we provide investment advisory services and sell securities and insurance products. Pershing, LLC ("Pershing"), serves as the clearing broker-dealer for AFP's brokerage business and provides custodial services for some of our advisory Clients. Charles Schwab & Co., Inc. ("Schwab") serves as the custodian for most advisory accounts. This Brochure provides important information about Ausdal Financial Partners, Inc. (referred to as "AFP," the "Firm," "we," or "us"), our services, our compensation, the costs of participating in our various programs, and situations where our interests may conflict with the interests of our Clients. We offer other investment advisory services and those are described in our separate Form ADV Part 2A Appendix 1 Wrap Fee Brochure (the "Wrap Fee Brochure"). Our firm offers services through our network of investment advisor representatives. Investment advisor representatives may use D/B/A names ("doing business as" names) or may have their own legal business entities whose trade names and logos are used for marketing purposes and may appear on marketing materials or client statements. You should understand that the businesses are legal entities of the investment adviser representative and not of our firm, Ausdal Financial Partners, Inc. The investment adviser representatives are under the supervision of Ausdal Financial Partners, Inc., and the advisory services of the investment adviser representative are provided through Ausdal Financial Partners, Inc. For a complete list of D/B/A or trade names please refer to Ausdal Financial Partners, Inc.'s ADV Part 1 Brochure, accessible through the SEC's website, www.adviserinfo.sec.gov, as referenced on the cover page, or in certain instances the D/B/A or trade name is listed on your investment adviser representative's Form ADV 2B Brochure.
You should pay particular attention to the discussions about our various conflicts of interest because these can affect our judgment in managing your account, in choosing brokers to execute trades for your account, and in recommending custodians, among other important considerations. You should also keep in mind that a number of separate businesses provide the various investment products and services described in this Brochure. These businesses' legal, contractual, and regulatory obligations differ in important ways depending on whether, in providing the product or service, they are acting as custodian, broker-dealer, third-party manager, or insurance company. If you have questions about the information in this Brochure, you can reach the investment adviser representative (an "Advisor") at the email address, telephone number, or street address shown in the Brochure Supplement you received from your Advisor. You can reach our senior management, including our Chief Compliance Officer, at the email address, telephone number, or street address shown on the front of this Brochure. 4 Our Advisory Services We offer a broad range of investment advisory programs and services, either directly or together with a third-party investment adviser, through one of the following advisory programs (collectively, the "Managed Programs"):
•Representative-Directed Portfolio Program ("RDP Program")
•Proprietary Advisory Program ("Proprietary Program")
•Separately Managed Account Program ("SMA Program")
•Financial Planning Services We also offer services through the Ausdal Wrap Fee Program to serve Clients who would like to combine the costs of advisory services and brokerage into a single fee. Clients interested in a wrap fee program may request a copy of our Wrap Fee Brochure which provides further information. The Wrap Fee Brochure is available from your Advisor or through the contact information on the front of this Brochure. Below we provide important information about the fees, expenses, risks, conflicts of interest and other considerations when evaluating our programs and services. However, please note the information in this Brochure is necessarily general and does not address all details that may be applicable to you; you should refer to your individual Advisory Agreement for specific terms that apply to you and be sure to discuss any specific questions with your investment adviser representative (your "Advisor"). Representative-Directed Portfolio Program In the RDP Program, the Advisor will obtain information regarding the Client's personal and financial situation, and the investment objective, tolerance for risk, liquidity needs, and investment time horizon for the account (the "Managed Account") that will be managed through the RDP Program (all referred to as the "Suitability Information"), as well as any reasonable investment restrictions the Client wishes to impose.
The Advisor will assist the Client to identify a suitable allocation of the Client's RDP Program assets, and an investment style and strategy which are suitable for the Managed Account in view of the Managed Account's Suitability Information, and any reasonable investment restrictions imposed by the Client.
Clients should take care to ask the Advisor questions about the RDP Program to be sure they understand the risks, potential rewards, fees, and expenses of the Program, the strategy the Advisor expects to use, and the types of investments that are expected. Where available, Clients should request copies of the prospectuses for the investments expected to be used in managing the Managed Account, and then ask questions about these investment before deciding to participate in the RDP Program.
Subject to AFP's supervision, the Advisor will provide continuous and regular investment management services of the Managed Account assets consistent with the Suitability Information and the investment style or strategy identified for the Managed Account, as modified from time to time by the Advisor, in the Advisor's discretion, to achieve the Managed Account's objective.
Types of Investments For the RDP Program and Proprietary Portfolios for which an Advisor or other AFP supervised person serves as portfolio manager, the Managed Assets may be invested in a portfolio allocated among various asset classes The investment types may include: mutual funds; money market funds; closed- end funds; exchange-traded funds ("ETFs"), including inverse and leveraged ETFs; common and preferred stocks; real estate investment trusts ("REITs"); business development companies; non- 5 traded closed end funds; as well as direct obligations issued or guaranteed by the U.S. Treasury, government agencies, or government sponsored entities, If appropriate, "sweep" arrangements are used where cash balances are transferred into money market funds; money market deposit accounts, or bank accounts for cash management purposes, which may be advised by or maintained with the account's qualified custodian ("Custodian") or an affiliate of the Custodian. The Adviser's investment strategy and any liquidity needs and investment restrictions imposed by the client will affect the specific types of investments we purchase or recommend for the specific client's account.
Advisory Agreement and Custodial Account Clients who desire to participate in the RDP Program will enter into an advisory Agreement to establish an account with us, and will also establish an account with the Custodian, which will maintain the account's assets and provide brokerage services.
Discretionary or Non-Discretion Accounts On the Advisory Agreement, Clients shall indicate whether they grant discretionary authority to AFP (and Advisor, on AFP's behalf) to purchase and sell securities, and act as the Client's limited agent to effect transactions for the Client's Managed Account and Managed Assets, without the Client's prior knowledge or consent. The discretionary authorization remains in effect until terminated or changed by the Client in writing. Discretion does not allow AFP or its Advisors to withdraw money from the Clients' accounts other than for payment of advisory fees.
Clients may choose not to grant AFP and the Advisor discretionary authority by marking "Non- Discretionary Trading Authorization" on the Advisory Agreement. Orders for non-discretionary accounts will usually not be included in block orders with discretionary accounts, and these accounts will not receive the benefits of sharing execution costs or using an average price account, as used with orders for discretionary accounts. Consequently, the transaction costs, the quality of execution, and overall performance of non-discretionary accounts may be less favorable, as compared to discretionary accounts. Differences Among Advisors' Accounts; AFP Supervision Advisors follow different investment strategies and styles, and adjust their investment selections depending on their Clients' personal and financial situation, and the investment objective, risk tolerance, liquidity needs, and investment time horizon of the account they are managing. Consequently, it is expected that the levels of volatility, fees, expenses, returns, and performance will, and do, vary significantly among Managed Accounts managed by the same Advisor and among Managed Accounts managed by different Advisors. In managing Client accounts, Advisors are acting on behalf of AFP, and the discretion granted by the Client, is granted to AFP. Advisors exercise such discretion in their capacity as AFP's investment adviser representative. As supervisor of the Advisors, AFP monitors Client Accounts. However, AFP does not direct or mandate the investment strategies or styles the Advisors follow in managing their Clients' Accounts.
Since our investment strategies and advice are based on each Client's specific financial situation, the investment advice Advisors provide to you may be different or conflicting with the advice our Advisors give to other Clients regarding the same security or investment.
6 Proprietary Advisory Program AFP offers the Proprietary Program for Clients who choose to enroll in a program utilizing AFP's models. Generally, the models consist of varying proportions of cash, fixed income, and equity investments, and are comprised of mutual funds, money market funds, closed-end funds; exchange- traded funds ("ETFs"), including inverse and leveraged ETFs; common and preferred stocks; as well as direct obligations issued or guaranteed by the U.S. Treasury, government agencies, or government sponsored entities. If appropriate, "sweep" arrangements where cash balances are transferred into money market funds, money market deposit accounts, or bank accounts for cash management purposes, may be advised by or maintained with the account's qualified custodian ("Custodian") or an affiliate of the Custodian.
The Models AFP's Investment Committee (or a senior executive, in the absence of the Investment Committee) is responsible for developing, managing and selecting the securities comprising the model portfolios used in the Proprietary Program. AFP will invest Client assets according to one or more model portfolios developed by one of AFP's portfolio managers. These models are designed for investors with varying degrees of risk tolerance ranging from a more aggressive investment strategy to a more conservative investment approach. Once a model portfolio is selected, the Client may set reasonable restrictions on the management of the Managed Account, including the types of securities that should not be purchased, or if already held, securities that should not be sold.
Separately Managed Account Program Through the Ausdal Separately Managed Account Program ("SMA Program"), Clients have access to a wide range of investment management programs ("Third-Party Programs"), sponsored by professional investment management firms (each a, "Sponsor"). For Clients interested in the SMA Program, our Advisor will work with the Client to develop an investment profile that identifies the Client's personal and financial situation, and the investment objective, tolerance for risk, liquidity needs, investment time horizon and other characteristics (all the "Suitability Information") applicable to the account to be managed through the SMA Program. Third-Party Programs can offer investment portfolios, styles, and strategies to meet the investment needs of many investors; but not every Third-Party Program is a good fit for every investor.
This Brochure provides a general overview of the common terms and characteristics of many of the Third-Party Programs. Clients interested in learning more about or finding a Third-Party Program should start by meeting with their Advisor. This will provide an opportunity for their Advisor to better understand the Client's specific situation and objectives for the assets to be managed through the Third-Party Program (the "Third-Party Assets"). This will help the Advisor to present for the Client's review prospective Third-Party Programs that most closely match the investment objective, risk tolerance, liquidity needs, and other characteristics (the "target characteristics") Client has in mind for the assets (the "Managed Assets") to be managed through the Third-Party Program. This information will be important to help in identifying a suitable portfolio manager (each a "Third-Party Manager" or "Manager") from a roster of managers available through the particular Sponsor's Third-Party Program. When the Client has decided to proceed, they should contact the Advisor to obtain the Wrap Fee or other Disclosure Brochure (as applicable) and sign the "Managed Program Agreement " containing the terms and

conditions governing the Client's participation in the Third-Party Program; and the Advisory Agreement with AFP; however, the Sponsor's Managed Program Agreement will contain and control most terms and conditions of the Managed Program, and the Client's participation. Client will also 7 receive the separate Form ADV Part 2A Brochure ("Third-Party Brochure") of each Third-Party Manager designated to manage the Third-Party Assets. The Third-Party Managers will actively manage the Third-Party Assets the Client allocates to the Third-Party Manager.
For most Third-Party Programs in the SMA Program, Clients who choose to participate in the SMA Program will enter into and maintain an advisory agreement with AFP pursuant to which the Client agrees to pay us an Advisory Fee for our on-going advisory services with respect to the Third-Party Program the Client selects, and will enter into one or more agreements with the Sponsor and Third- Party Manager(s), as necessary, to participate in the Third-Party Program, and will open an account with the qualified custodian designated for the Third-Party Program. However, Clients should be aware there are Third-Party Programs which provide a single, combined Advisory and Program Agreement among AFP, Sponsor, and Third-Party Managers that addresses Advisory Fees, Program Fees, and all terms and conditions of the Third-Party Program. Financial Planning Services Through our Financial Planning Services, the Client's Advisor meets with the Client to discuss and analyze the Client's investments and financial situation, and help the Client to identify his or her investment goals and objectives, tolerance for risk, and investment time horizon, among other key factors to developing a financial plan. Based on the information provided by the Client, the Advisor will develop recommendations to help the Client towards achieving his or her investment objectives.
For example, the Advisor may recommend that the Client purchase or sell securities or insurance products, reallocate existing investments, or take other steps to achieve their objectives. However, the Client will not have any obligation to buy or sell any securities or insurance products, or otherwise implement the Advisor's recommendations. If the Client chooses to implement recommendation made by the Advisor, the Client may choose any qualified broker-dealer or insurance agent for such transactions.
Clients who request Financial Planning Services may be asked to provide detailed information about the Client's personal and family situation, financial condition, investment objectives, risk tolerance, investment time horizon, estate and retirement plans, trust agreements, wills, investments, insurance, or other information necessary to provide the specific services requested.
AFP and Client will enter into a written Advisory Agreement that describes the specific Financial Planning Services AFP will provide, the Fees for such services, and whether any written report or financial plan will be provided. For example, in the Advisory Agreement, AFP may agree to provide any one or more of the following, among other services (all the "Financial Planning Services"): Consulting Services: Upon Client's request, Advisor will discuss with Client in person or by telephone issues Client would like to discuss regarding Client's investments, portfolio, or financial goals and objectives. Generally, this service will not include any written report.
Portfolio Review: Advisor will review the Client's current investments, and discuss with the Client the Advisor's assessment of whether the current portfolio is consistent with the Client's financial needs and investment objectives.
Retirement Planning: Advisor will discuss with Client estimates of the assets Client may need to retire at various assumed ages and the changes, if any, which Client may need to make in Client's current savings plan, investment portfolio, or investment strategies to improve the Client's ability to reach his or her financial objectives.
8 Business Planning: Advisor will review succession planning for Client's business and other specific topics of interest identified by the Client.
Asset Allocation: Advisor will discuss with the Client alternative allocations of Client's investments among various asset classes, and estimates for the effects changes may have on the Client's portfolio at certain points in the future. While AFP believes that asset allocation represents a reasonable approach for helping certain Clients to achieve their financial objectives, implementation of an asset allocation strategy provides no assurance that Client's financial objectives will be attained or that Client will not sustain losses in Client's investment portfolio.
Education Funding: Based on information provided by the Client regarding Client's plans for children's (or grandchildren's) education, the Advisor will discuss with the Client estimates of the amounts necessary to fund the planned education.
Estate Tax Planning: The Advisor will discuss with Client estimates of federal and state estate taxes that may be due at the time of Client's death, and strategies for minimizing such taxes. Please see the limitations described in the section below titled, Taxes; Services by Accountants with respect to any tax advice you receive from an Advisor.
Survivor Income Analysis: The Advisor will discuss with Client the amounts of income that may be available to Client or Client's spouse upon the death of each other, or to their surviving heirs.
Disability Income Analysis: The Advisor will discuss with Client estimates of Client's disability income needs, as well as a description of existing disability coverage and recommendations regarding such coverage.
In providing the Financial Planning Services, the Advisor will rely on assumptions or estimates regarding a number of important factors that may or may not turn out to be accurate at any time. These assumptions will often include subjects such as future market performance and investment returns, anticipated and reasonably foreseeable living and medical expenses, tax laws, interest rates, and other factors. As a result of likely differences between the items assumed and the actual situation at any time in the future, Client's (or Client's successors') financial situation or needs may be materially different than anticipated and Client's financial or investment objectives may not be achieved.
Unless specifically agreed in the Client's Advisory Agreement, AFP will not provide a written report or written plan in connection with the Financial Planning Services. If the Advisory Agreement provides for a written report or written financial plan, it will usually include recommendations to assist the Client in achieving his or her financial goals and objectives through purchasing or selling investments, purchasing new or revising existing insurance products or policies, establishing or participating in tax qualified accounts, or increasing or decreasing amounts held in savings accounts or other liquid investments.
If the Client elects to purchase any securities (including mutual funds, 529 Plans or Accounts, or variable products or insurance) or insurance products (including life insurance, fixed annuities, or long- term care products) recommended in connection with the Financial Planning Services, AFP and the Advisor will receive brokerage commissions and asset-based sales charges and service fees (including 12b-1 Fees), and insurance commissions as a result of those purchases. The possibility of such additional compensation creates a conflict that may affect the recommendations made to the Client. The Client is under no obligation to implement or otherwise act upon AFP's or an Advisor's recommendations; and if the Client elects to implement or act upon any such recommendation, the Client is under no obligation to affect any transactions through AFP, Advisor, or any other associated person, broker-dealer, or affiliate of AFP. 9 Investment Restrictions In all Managed Accounts managed by AFP, an Advisor, or supervised person, AFP permits the Client to impose reasonable restrictions on the investments not to be purchased for the Managed Account, and for investments already held in the Managed Account, to impose reasonable restrictions on the investments not to be sold. Clients should be aware that any restrictions they impose upon their account may affect the overall performance of the account. Thus, while that portion of the portfolio managed by the Advisor that did not have the restrictions may be performing consistent with the clients' expectation, the overall performance of the account, with the restrictions, may be performing better or worse than expectations.
Moreover, Clients should be aware that while AFP will permit reasonable restrictions on the investment of Managed Assets, not all Third-Party Managers accept investment restrictions with respect to management of the Third-Party Assets. Third-Party Managers establish separate and independent investment policies which take precedence over AFP's policies in the Third-Party Programs.
Changes In Client Circumstances Clients are advised that changes in their personal or financial situation, investment objectives, tolerance for risk, or investment time horizon may cause the strategy or portfolio designated for the Client's account to become no longer suitable. In the event of any material change in Client's personal or financial circumstances, Client should contact the Advisor or us promptly so that we may assist in identifying another program, strategy or other investments that better meet the Client's needs.
Taxes; Services by Accountants In taxable accounts, AFP and Advisor will use reasonable efforts to follow the instructions of Client and Client's tax advisors regarding the timing and recognition of taxable gains and losses, subject to applicable tax laws and regulations, as we understand them. Client must acknowledge AFP and Advisor are not acting as accountants or tax advisors, and are not providing tax advice; Client must rely on his or her own tax advisors with respect to the tax consequences of transactions involving the Managed Assets; provided, in any situation where an Advisor conducts business as an accountant and provides tax advice for Clients separate and apart from services as an Advisor on behalf of AFP, Clients must acknowledge such advice is provided by the Advisor-Accountant in his or her separate capacity and is not provided by or on behalf of AFP and AFP has no responsibility or liability for the advice provided in such separate capacity.
Information about Managed Programs As discussed above, we offer the Ausdal Wrap Fee Program to serve Clients who want to have the costs of trading and investment advice combined into one single fee. Accounts available through the wrap fee programs are not managed differently from accounts managed in non-wrap programs to the extent the same or similar investment strategy is available from the same Advisor. For a complete explanation of our Wrap Fee Program, please review the Wrap Fee Program Brochure, available from our Advisor or from the firm through the contact information on the front of this Brochure.
Held Away Accounts We use a platform provided by Pontera to manage held away assets such as defined contribution plan participant accounts, with discretion. The Pontera platform allows us to avoid being considered to have custody of Client funds since we do not have direct access to or direct use of Client log-in credentials to affect trades. We are not affiliated with Pontera in any way and receive no compensation from Pontera for using their platform. For certain 401k accounts, plan participants can authorize us to place trades using Pontera. Those clients who do not provide us with such authorization must place any trades in the 401k accounts themselves through their plan provider.
10 A link will be provided to the Client allowing them to connect an account(s) to the platform provided by Pontera. Once a Client account is connected to the platform, we will review the current account allocations. When deemed necessary, we will rebalance the account, taking into consideration client investment goals and risk tolerance, and any change in allocations.
Rollover Recommendations Effective December 20, 2021 (or such later date as the US Department of Labor ("DOL") Field Assistance Bulletin 2018-02 ceases to be in effect), for purposes of complying with the DOL's Prohibited Transaction Exemption 2020-02 ("PTE 2020-02") where applicable, we are providing the following acknowledgment to you.
When we provide investment advice to you regarding your retirement plan account or individual retirement account, we are fiduciaries within the meaning of Title I of the Employee Retirement Income Security Act and/or the Internal Revenue Code, as applicable, which are laws governing retirement accounts. The way we make money creates some conflicts with your interests, so we operate under a special rule that requires us to act in your best interest and not put our interest ahead of yours. Under this special rule's provisions, we must:
•Meet a professional standard of care when making investment recommendations (give prudent advice);
•Never put our financial interests ahead of yours when making recommendations (give loyal advice);
•Avoid misleading statements about conflicts of interest, fees, and investments;
•Follow policies and procedures designed to ensure that we give advice that is in your best interest;
•Charge no more than is reasonable for our services; and
•Give you basic information about conflicts of interest. We benefit financially from the rollover of your assets from a retirement account to an account that we manage or provide investment advice, because the assets increase our assets under management and our advisory fees. As a fiduciary, we only recommend a rollover when we believe it is in your best interest.
Managed Assets As of December 31, 2023, we managed $1,533,931,190 of Client assets, as follows:
•$1,421,934,074 on a discretionary basis; and
•$111,997,116 on a non-discretionary basis.