WallachBeth

The leading provider of institutional execution services

Customer Relationship Summary

September 7, 2022

I. Introduction

CUSTOMER RELATIONSHIP SUMMARY

Your financial professional (FP) who services your account is employed by WallachBeth Capital, LLC. (WallachBeth), a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA), and the Securities Investor Protection Corporation (SIPC). There are different ways you can get help with your investments. You should carefully consider what type of accounts and services are right for you. Brokerage and Investment Advisory services and fees will differ; therefore, it is important for you to be aware of the differences.

WallachBeth is required to provide retail investors a relationship summary disclosing certain information about the firm. Our ‘Customer Relationship Summary’ (CRS) offers information about our brokerage services, fees, and other important information as provided below.

II. Relationships and Services

“What investment services and advice can you provide me?”

  • WallachBeth offers brokerage services on an unsolicited basis. An unsolicited order is your idea, and has no input by your FP. We do not offer investment advice, and we do not recommend investments for your account.
  • WallachBeth does offer Private Placements to “Accredited Investors” and Institutional investors only.
  • The ultimate investment decision as to your investment strategy, and the purchase or sale of investments will be yours.
  • There are no minimums to maintain an account. Most orders are executed on an agency basis, where in WallachBeth acts as an agent in executing your order.
  • You will receive a trade confirmation for each order executed disclosing relevant trade details. You will also receive monthly statements of your account activity, unless there is no activity, in which case you will receive quarterly statements.
  • Confirmations and statements should be reviewed carefully for accuracy. Questions about your account should be discussed with your FP, a supervisor, or a compliance officer. If you have any concerns, you may contact us via telephone at (646) 998-7607, email at compliance@wallachbeth.com; or in writing to: WallachBeth Capital, LLC., Attn: Compliance, 185 Hudson Street, Suite 1410 Jersey City, NJ 07311.
  • Client transactions are reviewed daily by your FP’s supervisor and Compliance.

III. Key Questions to Ask

“Ask our financial professionals these key questions about our investment services and accounts.”

  • Given my financial situation, should I choose a brokerage service?
  • How will you choose investments to recommend to me? (WallachBeth does not offer investment advice for its clients.)
  • Make sure you understand what fees and cost you are paying. Have a discussion with your FP regarding all costs and fees associated with your account.
  • Inquire with your FP about his/her relative experience, including licenses, education, and other qualifications. What do the qualifications mean?
  • How does your FP make money? The FP gets paid a portion of the commission charged on each trade. Accordingly, the more transactions executed, the more your FP makes money on your account.
  • Does your FP have any conflicts of interest?
  • Ask your FP if he/she has any regulatory issues.

“What fees will I pay?”

  • You will pay the firm a transaction-based fee, generally referred to as a commission, or a markup or markdown for riskless principal transactions, every time you buy or sell an investment. This will be disclosed on your trade confirmation.
  • Retail Investors will be charged more when there are more trades, in his or her account, and therefore, a firm may have an incentive to encourage a retail investor to trade often.
  • Besides commission cost associated with each trade, you can expect a ticket charge which is assessed by the clearing firm on each transaction.
  • You will pay fees and costs whether you make or lose money on your investments. Fees and commissions will affect the amount and reduce any amount of money you make on your investments over time. Please make sure you understand the fees and cost you are paying. Have a discussion with your FP regarding all costs and fees associated with your account.

IV. Conflicts, Standard of Conduct & Legal Obligations

  • WallachBeth is a registered broker-dealer that considers many factors on how it handles its order routing procedures to National Securities Exchanges, Alternative Trading Systems, and other Broker-Dealers to achieve “best execution” for its customers.
  • As such, WallachBeth may receive a rebate and/or incur a fee while routing an order to an exchange or market center. The fee or rebate depends on the type of order received and the handling of such orders. Details are available upon written request.
  • WallachBeth receives a commission from the issuer of a Private Placement or offering when a client of WBC participates in the offering.
  • WallachBeth must act in your best interest and not place its interests ahead of yours. WallachBeth does not recommend any investment strategies to its clients, nor does it place personal FP transactions ahead of its clients’ transactions, thus eliminating any conflicts of interest. When we provide any service to you, we must treat you fairly and comply with a number of specific regulatory obligations.

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

VI. Additional Information

  • To report a problem to the SEC, visit https://www.investor.gov/ or call the SEC’s toll-free investor assistance line at (800) 732-0330. You can also report a problem to FINRA at (844) 57-HELPS.