Vested Securities Form CRS - FINAL 05 APR 2022

Vested Securities, LLC

Form Customer Relationship Summary (CRS) April 5, 2022


Vested Securities, LLC (“Vested Securities” or “we” or “our”) is registered as a broker-dealer with the U.S. Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority, Inc. (FINRA). Brokerage and investment advisory services and fees differ, and it is important that you 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 act as a private placement broker for the purposes of facilitating the execution of prepaid forward contracts (“PFCs”). Typically, we broker PFCs between: (1) employees, former employees, or investors (collectively “Equity Holders”) of start-up companies that hold privately held shares or stock options with respect to such start-up companies, and (2) institutional investors (“Funds”).


PFCs are designed to provide Equity Holders liquidity with respect to their existing holdings and/or in order to allow Equity Holders to efficiently exercise their stock options. Given our business model, we offer our brokerage services with respect to a limited number of securities. We do not perform any type of clearing functions for ourselves or others and do not handle or hold customer funds or securities.


We also do not trade principally for our own account, but we may facilitate PFCs between you and Funds for which an affiliate of ours serves as investment adviser. We may recommend you enter into a PFC based upon your investment profile and what we believe is in your best interest. However, we do not have discretion over your account. Therefore, the decision to enter into a PFC is up to you.


For additional information regarding our services, please see our Reg BI Disclosure FAQs.


CONVERSATION STARTERS: Ask your financial professional:

Given my financial situation, should I choose an investment advisory service? 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?


It is important for you to understand the fees and costs you will incur for your brokerage services, including how frequently they are assessed and the conflicts of interest they may create. We typically charge a fee that is a percentage of the notional value of the PFC. Therefore, we make more money when you transact in larger amounts and/or in greater frequencies. You may be subject to additional associated transaction fees, including but not limited to transfer taxes and wire charges.


For additional information regarding our fees and costs, please see Reg BI Disclosure FAQs.

CONVERSATION STARTER: Ask your financial professional:

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? 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, 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:

  • We make money when you utilize our brokerage services. We earn fees on the securities transactions that we broker so we have an economic incentive to encourage larger, more frequent securities transactions in order to increase our revenue.

  • We earn a transaction fee generally based on the size of a PFC that we broker for you. Therefore, we are incentivized to encourage you to transact as large of a transaction as possible.

  • We may facilitate transactions between you and a Fund for whom one of our affiliates serves as an investment adviser. A portion of the profits derived from our investment advisory affiliate will indirectly benefit us and therefore presents a conflict of interest.


CONVERSATION STARTER: Ask your financial professional:

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


How do your financial professionals make money?


Our financial professionals receive a salary and have the possibility of a discretionary bonus based upon individual job performance and our overall performance.


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


No. Neither Vested Securities nor its financial professionals have reportable legal or disciplinary events. Visit Investor.gov/CRS for a free and simple search tool to research your financial professionals.


CONVERSATION STARTER: Ask your financial professional:

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


If you would like the most current information about our firm or to request a copy of the relationship summary, please call 619-520-8522.


CONVERSATION STARTER: Ask your financial professional:

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


The equity tools on this website are for illustrative purposes only and are not necessarily indicative of future results. No representation is made that results that are similar to those shown can be achieved. Any screenshots or images of these tools contain hypothetical outputs and do not reflect any specific circumstances or anticipated results. See additional disclosures below for more information.

Check the background of Vested Securities, LLC on FINRA's BrokerCheck and see the firm's Customer Relationship Summary here.

By using this website, you understand the information being presented is provided for informational and educational purposes only and agree to our Terms of Use and Privacy Policy. Vested, Inc. (together with its affiliates, “Vested”) relies on information from various sources believed to be reliable, including users and third parties, but cannot guarantee the accuracy and completeness of that information.

Vested, Inc. is a technology company as well as an adviser regulated by the U.S. Securities and Exchange Commission as an exempt reporting adviser. Vested, Inc. also provides free tools to help startup employees understand and make the most of their equity compensation. This includes the Equity Dashboard, Outcome Simulator, Fairness Calculator and AMT Calculator. All company data, including but not limited to valuation, projections and common share price, are estimates derived using public data sets, without any endorsement or influence from the company, and should be used only for informational and educational purposes. These data should not be used as investment advice. The Equity Dashboard allows you to enter your option grant and monitor your equity. The Outcome Simulator allows you to create hypothetical exit scenarios with your own inputs such as exit date and valuation. The Fairness Calculator helps you to see how your option grant compares to those received by other startup employees with similar roles at similar companies. The AMT Calculator helps you understand the possible impact of exercising options on possible Alternative Minimum Tax scenarios. All these tools are for illustrative purposes only and do not constitute tax, investment, financial or any other actionable advice.

While Vested, Inc. is not a broker-dealer, its affiliated subsidiary, Vested Securities, LLC (“VSL”), is a registered broker-dealer and member FINRA/SIPC. Prepaid Forward Contracts (“PFCs”), when brokered, are done so by VSL between share- or option-holders and funds. VSL does not have a direct relationship with investors in the funds.

Nothing on this website should be construed as an offer, solicitation of an offer, or recommendation to buy, sell or hold any security. All investments involve risk, and the past performance of a security or financial product does not guarantee future results or returns. PFCs are highly speculative and are less liquid than publicly traded securities. You should consider these risks and your investment objectives carefully before investing or participating in any securities transaction. Vested does not provide legal, tax or financial planning advice.

Company logos are provided by Clearbit. All company names, logos and brands that appear on this website are property of their respective owners. All company, product and service names and logos used in this website are for identification and informational purposes only. Use of these names, logos and brands does not imply endorsement.
Form CRS Reg BI FAQs - CIP Public Notice -BCP Public Disclosure Statement