Regulation Best Interest (Reg BI) Relationship Summary
Effective February 18, 2021
StartEngine Primary LLC (“we”, “us”, “our”, “SE Primary”) is a registered broker-dealer with the
Securities and Exchange Commission,and a member of FINRA and the SIPC.
Relationships and Services
- What investment services and advice can you provide me?
If you choose to invest in companies (“issuers”) that we have approved and listed on our website, your investment is solely a decision by you. We do not recommend individual issuers, monitor investing or accounts, or advise you on the investment decisions you make.
Our website lists issuers and shareholders offering their securities to you as a retail investor. Purchasing these investments are considered highly speculative investments. We include this disclosure throughout our website and with all offering material:
This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.
As we mentioned above, SE Primary does not provide recommendations to you or to any retail investors. We do advertise and market our Regulation A+ offerings via our website, email and other media platforms.
Fees, Costs, Conflicts and Standard of Conduct
- What fees will I pay?
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.
If I invest in Regulation A+ offerings through SE Primary, what will I pay:
The Offering Circular provided with each issuer’s offering has valuable information about fees, a company’s history, financial statements, conflicts of interest, and other important facts. It is highly recommended for you to read the Offering Circular prior to investing with any issuer listed on the StartEngine website.
The costs associated with each Regulation A+ offering are often paid for by the issuer out of the proceeds of the offering. In certain cases, investors may pay a convenience fee in excess of their investment amount of up to 3.5% of their investment. For example, if an offering is charging this fee, an investment of $100 will cost the investor $103.50. Whether or not this fee is being charged for a given offering can be found in the Offering Circular.
If I sell securities on StartEngine Secondary through SE Primary, what will I pay:
- 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 examples to help you understand what this means:
Incentives or Conflicts Created
We receive fees from Regulation A+ sales
Placement fees received from an issuer selling securities through SE Primary
We receive placement fees from issuers when you invest in Regulation A+ offerings. Higher sales increase the placement fees we receive.
We may receive warrants of up to 5% from an offering
The amount of warrants we receive from an issuer is based upon the total amount raised by SE Primary
The Offering Circular for each issuer marketed on our website describes additional compensation (warrants) we may receive.
READ the Offering Circular before investing
Warrants we may receive have a holding period for a specified time frame. If we exercise (purchase) those warrants after the holding period, dilution occurs for all shareholders.
You will pay us commission fees from the secondary sale of securities on StartEngine Secondary
Up to 5% of the price of the securities sold on StartEngine Secondary.
SE Primary offers Regulation A+ offerings which may later trade on StartEngine Secondary, and we will receive fees from their trading activity.
Do you or any of your associated persons have legal or disciplinary history? No.
How can I contact SE Primary?
Online Information About SE Primary
Receive a copy of Relationship Summary
Reach us by Telephone
If I have concerns about SE Primary or I have a complaint