KATALYST SECURITIES LLC
FINRA CRD#: 112494 / SEC #: 8-53260
FORM CRS – CLIENT RELATIONSHIP SUMMARY
JULY 2023
Katalyst Securities LLC (“Katalyst” or the “Firm”) is registered as a broker-dealer with the Financial Industry Regulatory Authority (“FINRA”), is registered with the United States Securities and Exchange Commission (“SEC”) and is a member of the Securities Investor Protection Corporation (“SIPC”). Brokerage and investment advisory services and fees differ, and it is important for you to understand these differences.
There are free and simple tools available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.
1. WHAT TYPES OF INVESTMENT SERVICES AND ADVICE CAN YOU PROVIDE ME?
Katalyst Securities LLC does not offer retail services or open brokerage accounts. We do not buy or sell securities on your behalf; we do not hold retail investor cash or securities; we do not clear trades; we do not monitor any investments for you; we do not make recommendations to you. Other brokerage firms will be able to provide a wider range of services for the average retail investor.
The Firm offers investments in private placement offerings to certain retail investors who qualify as Accredited Investors, as defined in Rule 501(a) of Regulation D as under the Securities Act of 1933, as amended (the “Act’). Private Placements are securities that are generally exempt from registration with the SEC and they can carry significant risks, including, but not limited to, the loss of some or all of your investment, the lack of a public market in which to sell your investment, a lack of publicly available information on the company or holdings with the investment, and no guarantee of return or of periodic payments.
The Firm offers its services to retail customers on a per transaction basis. Detailed information about the investment can be found in the Offering Documents for each particular investment, which you must review carefully prior to investing. The Firm may introduce to you a private placement investment for your consideration. You will make the ultimate investment decision regarding the investment and the decision to purchase or sale of investments will be yours alone. Your decision whether to invest should be based upon your own:
Investments strategy
Investment Time Horizon
Other Investments
Liquidity Needs
Tax Status
Financial situation & needs
Investment Objectives
Risk tolerance
Investment Experience
Age
We encourage you to review any potential investment with your investment advisor, legal counsel or investment counsel. The Firm does not provide investment advice, legal counsel, tax advice, investment counsel. You are the ultimate decision maker.
CONVERSATION STARTERS – Ask a financial professional.
These are suggested questions to begin conversations and open dialogue with a financial professional.
1. Given my financial situation, should I choose a retail brokerage account with services? Why or why not?
2. How will you choose investments to recommend to me?
3. What is your relevant experience, including your licenses, education and other qualifications?
4. What do these qualifications mean to me?
2. WHAT FEES WILL I PAY?
The Firm does not charge the retail investors any fees for the brokerage services as set forth in Section 1. The Retail investors pay no commissions or transaction fees, finder’s fees, placement agent fees, ticket charges, account opening or maintenance fees, sales charges, or other similar or typical brokerages fees of any sort,
If you invest in a private placement, the Issuer will pay the Firm fees and expenses, as outlined in the Offering Documents. The Firm’s recommendation of an investment that pays the Firm fees and expenses could be seen as a conflict of interest that you should be aware of. The more private placements the retail investor invests in, the more fees the Firm earns. There are other factors with each investment opportunity that should be reviewed very carefully with your investment or tax professionals prior to investing.
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 STARTERS – Ask your financial professional.
These are suggested questions to begin conversations and open dialogue with the financial professional.
1. 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?
3. 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 interest. You should understand and ask us about these conflicts because they can affect the recommendations we provide to you.
Here are some examples to help you understand what this means.
1. For example, there are incentives to recommend investments that are issued, sponsored, or managed by our affiliates. We make money from the fees generated from the investments in the transaction. This fee is earned by the broker dealer.
2. The broker dealer may earn compensation from third parties when we recommend or sell certain investments.
3. In addition, they may be compensated in non-cash compensation such as stock, warrants for investment banking and private placement transactions. These payments maybe identified as a conflict of interest.
CONVERSATION STARTERS – Ask your financial professional.
These are suggested questions to begin conversations and open dialogue with the financial professional.
As an investor, how might your conflicts of interest affect me, and how will you address them?
4. DO YOU OR YOUR FINANCIAL PROFESSIONALS HAVE LEGAL OR DISCIPLINARY HISTORY?
Yes, Katalyst Securities LLC, the broker dealer and some of our financial professionals. Visit Investor.gov/CRS for a free and simple search tool to research us and our financial professionals.
CONVERSATION STARTERS – Ask your financial professional.
These are suggested questions to begin conversations and open dialogue with the financial professional.
As a financial professional, do you have any disciplinary history? If so, for what type of conduct?
5. ADDITIONAL INFORMATION
You can find additional information about the Firm’s broker dealer on FINRA’s website at https://finra.org, by searching CRD # 112494. You may also contact us at 212-400-6993 and talk to any one of our investment professionals or support staff.
There are free and simple tools available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.
CONVERSATION STARTERS – Ask your financial professional.
These are suggested questions to begin conversations and open dialogue with the financial professional.
1. Who is my primary contact person?
2. Is he or she a representative of an investment advisor or a broker or both? Is there a conflict?
3. Who can I talk to if I have concerns about how this person is treating me?
4. As a financial professional, do you have any disciplinary history? If so, for what type of conduct?