Customer Relationship Summary
(February 5, 2024) – LexAurum Advisors, LLC - ADV Part 3 – Form CRS
Brokerage and investment advisory services and fees differ, and it is important for you to understand the differences.
We are an investment advisor and provide advisory accounts and services rather than brokerage accounts and services. 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 advisors, and investing.
What investment services and advice can you provide me?
We offer investment advisory services to retail investors. We can provide investment management and financial
services.
Conversation Starters: Ask your financial professional:
What fees will I pay?
Investment Management. Quarterly fees you pay for investment management services are generally based on total assets under management (AUM) at a rate negotiated on a case-by-case basis. Some investments (such as mutual funds and variable annuities) impose additional fees that will reduce the value of your investment over time. You may pay a transaction fee when we buy and sell an investment for you, but not when purchasing U.S. exchange-listed stocks and exchange traded funds (ETFs). In lieu of a transaction fee, you may instead pay the custodian an asset based fee based on account size. The custodian may also charge you a fee on nonstandard assets (such as non-traded investments).
Financial Planning. Fees you pay for financial planning are quoted in advance and charged at a fixed amount (paid in lump sum, monthly or annually) or based on an hourly rate. Fees will vary based on complexity of the services and are negotiable.
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.
For additional information, please see Item 5 of our Form ADV, Part 2A brochure.
Conversation Starter: Ask your financial professional:
What are your legal obligations to me when acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have?
When we act as your investment adviser, we are required 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 investment advice we provide you. Here are some examples to help you understand what this means:
The more assets there are in your account, the more you will pay us in fees. We therefore have a financial incentive to encourage you to increase the assets that we manage.
Our firm provides a standardized managed account service known as the Golden Rule Program (GRP). For GRP managed accounts, the firm does not retain any fee from your financial professional’s portion of the overall expense as the firm would for non-GRP accounts. This creates a conflict of interest, as accounts managed by your financial professional, or by a third-party manager, earn your professional less money. You are made aware of the fee options in advance and are not obligated to use any management option.
Our custodians also make available to us other products and services that benefit us but may not directly benefit you.
These products and services assist us in administering our clients’ accounts and business. This may include investment research, back-office support, educational conferences and events, and consulting. This may give us an incentive to recommend that you maintain your account with a custodian based on our interests rather than yours, which is a conflict of interest. We believe, however, that our selection of custodians and brokers is in the best interests of our clients, and is primarily supported by the scope, quality, and price of services provided and not the custodians’ services that benefit only us.
For additional information, please see Items 5, 10, 11 and 14 of our Form ADV, Part 2A brochure.
Conversation Starter: Ask your financial professional:
How do your financial professionals make money?
Our financial service professionals receive a portion of the total fees received by the firm. This creates a conflict of interest because our financial professionals have an incentive to encourage you to transfer assets into your accounts and recommend our advisory services to you.
Some of our professionals may also be registered representatives of Brokers International Financial Services LLC, a securities broker-dealer. As such, these professionals, in this separate capacity, will be able to effect securities transactions and will receive separate customary compensation for them. They may also receive marketing distribution fees (also called “12b-1”) from investment companies for placing funds with them.
Do you or your financial professionals have legal or disciplinary history?
Firm – no. Financial professionals – yes. Visit Investor.gov/CRS for a free and simple search tool to research our
firm and your financial professional.
Conversation Starter: Ask your financial professional:
Additional Information.
We encourage you to seek additional information.
For additional information on our services, see our Form ADV brochure on IAPD on Investor.gov or on adviserinfo.sec.gov and any brochure supplement your financial professional provides. If you would like additional, up-to-date information or a copy of this disclosure, please call us at 913-735-5391.
Conversation Starter: Ask your financial professional:
Brokerage and investment advisory services and fees differ, and it is important for you to understand the differences.
We are an investment advisor and provide advisory accounts and services rather than brokerage accounts and services. 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 advisors, and investing.
What investment services and advice can you provide me?
We offer investment advisory services to retail investors. We can provide investment management and financial
services.
- Investment Management. We will offer you investment advice on a regular basis and regularly monitor your account(s). We will contact you (in person, by phone or email) at least annually to discuss your portfolio. You can choose an account that allows us to buy and sell investments in your account without prior authorization (a “discretionary account”) or we may give you advice and you can decide what investments to buy and sell (a “non-discretionary account”). We do not impose account value minimums, although our independent financial professionals may choose to do so. We do not limit our financial professionals to proprietary products or a limited menu of products and types of investments.
- Financial Planning. We provide one-time or ongoing financial planning services where we offer you advice in areas such as education funding, retirement and estate planning, risk management, and employee benefits and tax planning. If you choose a one-time plan there may be no further communication between us. If you choose ongoing planning, we will contact you at least once a year in person, by phone or email.
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 means?
What fees will I pay?
Investment Management. Quarterly fees you pay for investment management services are generally based on total assets under management (AUM) at a rate negotiated on a case-by-case basis. Some investments (such as mutual funds and variable annuities) impose additional fees that will reduce the value of your investment over time. You may pay a transaction fee when we buy and sell an investment for you, but not when purchasing U.S. exchange-listed stocks and exchange traded funds (ETFs). In lieu of a transaction fee, you may instead pay the custodian an asset based fee based on account size. The custodian may also charge you a fee on nonstandard assets (such as non-traded investments).
Financial Planning. Fees you pay for financial planning are quoted in advance and charged at a fixed amount (paid in lump sum, monthly or annually) or based on an hourly rate. Fees will vary based on complexity of the services and are negotiable.
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.
For additional information, please see Item 5 of our Form ADV, Part 2A brochure.
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 acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have?
When we act as your investment adviser, we are required 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 investment advice we provide you. Here are some examples to help you understand what this means:
The more assets there are in your account, the more you will pay us in fees. We therefore have a financial incentive to encourage you to increase the assets that we manage.
Our firm provides a standardized managed account service known as the Golden Rule Program (GRP). For GRP managed accounts, the firm does not retain any fee from your financial professional’s portion of the overall expense as the firm would for non-GRP accounts. This creates a conflict of interest, as accounts managed by your financial professional, or by a third-party manager, earn your professional less money. You are made aware of the fee options in advance and are not obligated to use any management option.
Our custodians also make available to us other products and services that benefit us but may not directly benefit you.
These products and services assist us in administering our clients’ accounts and business. This may include investment research, back-office support, educational conferences and events, and consulting. This may give us an incentive to recommend that you maintain your account with a custodian based on our interests rather than yours, which is a conflict of interest. We believe, however, that our selection of custodians and brokers is in the best interests of our clients, and is primarily supported by the scope, quality, and price of services provided and not the custodians’ services that benefit only us.
For additional information, please see Items 5, 10, 11 and 14 of our Form ADV, Part 2A brochure.
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 service professionals receive a portion of the total fees received by the firm. This creates a conflict of interest because our financial professionals have an incentive to encourage you to transfer assets into your accounts and recommend our advisory services to you.
Some of our professionals may also be registered representatives of Brokers International Financial Services LLC, a securities broker-dealer. As such, these professionals, in this separate capacity, will be able to effect securities transactions and will receive separate customary compensation for them. They may also receive marketing distribution fees (also called “12b-1”) from investment companies for placing funds with them.
Do you or your financial professionals have legal or disciplinary history?
Firm – no. Financial professionals – yes. Visit Investor.gov/CRS for a free and simple search tool to research our
firm and your financial professional.
Conversation Starter: Ask your financial professional:
- As a financial professional, do you have any disciplinary history? For what type of conduct?
Additional Information.
We encourage you to seek additional information.
For additional information on our services, see our Form ADV brochure on IAPD on Investor.gov or on adviserinfo.sec.gov and any brochure supplement your financial professional provides. If you would like additional, up-to-date information or a copy of this disclosure, please call us at 913-735-5391.
Conversation Starter: Ask your financial professional:
- Who is my primary contact person? Is he or she a representative of an investment adviser or a brokerdealer Who can I talk to if I have concerns about how this person is treating me?