Form CRS - Relationship Summary
Fundopolis Securities, LLC - 4/1/2024
Fundopolis Securities, LLC is a SEC-registered broker-dealer and a member of FINRA and SIPC. We don't provide investment advisory services or portfolio management. Our focus is on selling securities issued by companies we represent and handling secondary transactions in private securities. We act as an issuer's agent unless a written agreement states otherwise. We don't give advice or recommendations on specific securities or investment strategies. If any action is deemed a recommendation under U.S. law, be aware of potential conflicts of interest. We advise seeking guidance from an investment advisor or broker. Free and simple tools are available to research firms and financial professionals at www.investor.gov/CRS which also provides educational materials about Brokers, Dealers, Investment Advisers, and investing.
What Investment Services and Advice Can You Provide Me?
Description of Services: Fundopolis provides a limited range of investment options and services. These include the option for investors to make unsolicited self-directed investments on an agency basis in unregistered securities offerings, such as private placements offered under Regulation D and Regulation A. Fundopolis does not offer investment advisory services. You make the ultimate decision regarding the purchase or sale of your investments.
This statement serves to clarify that we do not establish a fiduciary relationship with our customers. It is the customer's responsibility to regularly monitor their investments, as we do not provide ongoing monitoring services.
We have no requirements for retail investors to open establish a relationship such as a minimum account size or investment amount. We do not open or maintain brokerage accounts for our customers.
What Fees Will I Pay?
Fundopolis collects transaction-based fees from companies issuing securities. These fees are paid to us by the issuing company when an investor makes an investment. Although investors do not pay us directly, the issuing company compensates us from a portion of the investment, in part the same way a residential real estate transaction may occur, with the seller paying a portion of the proceeds to the agent. In this scenario, Fundopolis is the agent.
Fundopolis receives compensation from the Issuer if there is a successful transaction. Compensation is usually a percentage of the investment typically between 3% and 10%. These fees vary depending on the issuer, type of security, number and size of transactions, and nature of services. Since we are compensated by the Issuer when we serve as their agent, we may have a conflict of interest with investors in that we have an incentive to sell securities for which we stand to profit.
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
Conversation Starter: 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? How else does your firm make money and what conflict of interests do you have?
We do not provide recommendations. 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 services we provide you. Here are some samples to help you understand what this means.
Proprietary Products: Our firm will often present investments that are only available through us, which may result in a higher placement fee.
Management Fees: Our firm will often present investments in which an affiliate may act as a manager of the company and will often be compensated for such services.
Warrant Position: Our firm may receive a warrant (an option to purchase an equity security in the future, for a defined price) for certain securities. Given that our firm, or other equity holders in the company, may have an investment time horizon that differs from yours, this may create a conflict of interest.
Third-party Payments: Fundopolis earns revenue through transaction-based fees and other financial arrangements with third parties. These fees are earned when we provide brokerage services to you, as permitted by securities rules. The specific fees we receive from you depend on the product or service you purchase.
Conversation Starter: How might your conflicts of interest affect me and how will you address them?
How do your financial professionals make money?
Fundopolis financial professionals, which are often the individuals working with the company to structure an appropriate security, receive a percentage of the placement fee received by Fundopolis in the investments they structure. Therefore, these professionals have an interest in presenting you with the investments they have structured.
Do you or your financial professionals have legal or disciplinary history?
No. Neither Fundopolis nor its financial professionals have a legal or disciplinary history. You have access to a free and simple tool to research our firm and financial professionals at investor.gov/CRS.
Conversation Starter: As a financial professional, do you have any disciplinary history? For what type of conduct?
Additional Information
Additional information about us and the brokerage services we offer can be found on our website at fundopolis.com. If you have any questions or would like to receive an up-to-date copy of this relationship summary, email investors@fundopolis.com or call 781-218-9606.
Conversation Starter: Who is my primary contact person? Is he or she a representative of an investment advisor or a broker-dealer? Who can I talk to if I have concerns about how this person is treating me?