NETSHARES FINANCIAL SERVICES, LLC
Client Relationship Summary
April 2021
Netshares Financial Services LLC (“NFS” or the “Firm”) is registered with the Financial Industry Regulatory Authority (“FINRA”) as well as the Securities and Exchange Commission (“SEC”) as a broker-dealer. Brokerage and investment advisory services and fees differ, and it is important for you to understand the differences. This Client Relationship Summary provides details about our brokerage services, fees, and other important information.
Free and simple tools are available for investors to research firms and financial professionals at Investor.gov/CRS. Here, you can also find educational materials about broker-dealers, investment advisers, and investing.
What investment services and advice can you provide me?
Netshares Financial Services LLC offers brokerage services to retail investors. Currently, the Firm does not have a clearing relationship. The Firm is approved for the following business lines: Private Placement of Securities, Merger & Acquisition Advisory Services, and Operating a Funding Portal pursuant to Regulation Crowdfunding. The Firm offers recommendations to its customers.
NFS does not maintain customer accounts and as such does not monitor any of its customer investments. Representatives will discuss overall customer objectives and customers can ask representatives to discuss and explain any transaction in they may engage in with the NFS. Also, representatives discuss all recommendations to their clients on a per/transaction basis. Clients are NOT required to participate with every recommendation. Clients are permitted to decline any recommendation they do not to participate in.
The client has the last word in the investment decisions.
The firm does sell proprietary products or offer proprietary products to its clients. Clients at the firm make the decision which products they will purchase for their accounts.
The Firm may require a minimum investment amount and all investments are subject to the Firm’s suitability policy.
Conversation Starters. Ask your financial professional these questions to learn more:
Given my financial situation, should I choose a brokerage 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?
For additional information, on products that the firm offers, please visit our website: www.netshares.com
What fees will I pay?
Conversation Starters. Ask your financial professional these questions to learn more:
Given my financial situation, should I choose a brokerage 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?
For additional information, on products that the firm offers, please visit our website: www.netshares.com
What fees will I pay?
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 pay fees and costs, and how much will be invested for me?
Fees are paid to the Firm in a number of ways. Issuers pay Netshares a fee to use the Netshares communication Portal for Reg CF offerings. Netshares does not charge a fee to investors for offerings via Reg CF or Reg A. For secondary transactions, Netshares may receive a fee for the purchase and/or sale of privately held securities. Every secondary transaction is unique, and fees will differ per transaction. Netshares does not charge a fee to investors for offerings via Reg CF or Reg A. For secondary transactions, Netshares may receive a fee for the purchase and/or sale of privately held securities. Every secondary transaction is unique, and fees will differ per transaction. Placement Agent Fees will vary for each security offered and will be stated in the offering’s Private Placement Memorandum and or subscription documents. The Firm may also receive fees for private placement offerings which will be disclosed in the offering documents relevant to the offering.
Private investment funds offered by Netshares may be managed by an affiliated entity. These affiliated companies may be entitled to:
Management Fee: a stated percentage of the gross proceeds sold in an offering of a private investment fund.
Carried Interest: affiliated companies may receive a percentage of any profit realized when a cash distribution takes place.
Distribution Fee: a stated percentage of any distribution made in conjunction with a private fund investment.
Cost Reimbursement: legal, banking, and accounting fees
Any fees related to an investment in a private investment fund will vary. Fee details are listed in the Private Placement Memorandum. Investors should carefully read these documents prior to making an investment. Fees paid are not contingent upon the financial performance of each company. Fees are due regardless of whether investors make or lose money on their investments. Fees and expenses will result in a reduction of the amount of money one can make on investments over time. Investors must understand what fees and costs they are paying.
For more information, please contact your registered representative or our compliance department at: 800-216-0360
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 must 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.
Conversation Starter –
How might your conflicts of interest affect me, and how will you address them?
The Firm and its Registered Representatives earn by charging its clients commissions or by receiving fees directly from the issuers whose offerings the Firm may sell to you. Additionally, the Firm may sell securities in Companies in which the Firm’s indirect owners have an interest, control and or manage those Companies. This creates an inherent conflict, and you should consider this before making an investment in an affiliated private placement which the Firm may offer. These, and other risks will be disclosed in the respective offering documents and should be reviewed carefully prior to making any investment decisions.
How do your financial professionals make money?
The firms Registered Representatives earn by charging commissions to their clients or receiving compensation from the issuer which the Firm has an engagement with to raise capital. This may cause a conflict of interest to in that the more transactions the Representatives solicit the more the Representatives can earn.
Do you or your financial professionals have legal or disciplinary history?
-No
You can visit Investor.gov/CRS for a free and simple search tool to research our firm and financial professionals.
Conversation Starter –
As a financial professional, do you have any disciplinary history? For what type of conduct? Who is my primary contact person? Is he or she a representative of an investment adviser or broker-dealer? Who can I talk to if I have concerns about how this person is treating me?
For additional information about Netshares Financial Services LLC, or to request a copy of this relationship summary please visit www.netshares.com. You may also call 800-216-0360 to request up to date information or a copy of this relationship summary.
Houston Main Office
Netshares Financial Services, LLC is an SEC registered broker-dealer and a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investors Protection Corporation (SIPC). As an intermediary, we provide opportunities to connect private companies with investors for securities offered and sold under Title II, III, and IV of the JOBS Act.
STAY INFORMED
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Check the background of this firm on
FINRA’s BrokerCheck
Netshares Financial Services, LLC By accessing this website and any pages thereof, you agree to be bound by the Terms of Service and Privacy Policy. This website is operated by Netshares Financial Services, LLC (“Netshares”), a broker-dealer registered with the U.S. Securities and Exchange Commission (the “SEC”) and a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investors Protection Corporation (“SIPC”), which protects securities customers of its member up to $500,000 (including $250,000 for claims for cash). An explanatory brochure can be found at www.sipc.org. Netshares is located at 3200 Wilcrest Drive, Suite 275, Houston, Texas 77042. You may find the background of our broker-dealer and investment professionals on FINRA’s broker/check.
Investment opportunities accessible through this website include offerings made in reliance on the registration exemptions provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), Rule 506 of Regulation D promulgated thereunder, Regulation A, or under Section 4(a)(6) of the Securities Act and Regulation Crowdfunding thereunder. Unless indicated otherwise with respect to a particular issuer, all securities-related activity is conducted by Netshares. Investment opportunities listed on this website are intended for investors who do not have a need for a liquid investment. Investments listed on this website are speculative in nature and involve a high degree of risk. Past performance is not indicative of future performance and the value of an investment may go down and result in partial or total loss of your investment. Investors who cannot afford to lose their entire investment should not invest. Neither the SEC nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through this website. All securities listed on this website are being offered by, and all information included on this website is the responsibility of, the applicable issuer of such securities. Netshares does not verify the adequacy, accuracy or completeness of any information, and no communication, through this website or in any other medium, should be construed as a recommendation for any security offering listed therein. In making an investment decision, prospective investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved, and are strongly encouraged to consult with their tax, legal and financial advisors.
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