Regulation Best Interest Disclosure

05.2025

 

 

 

INTRODUCTION

Regulation Best Interest [“Reg BI”] is a new standard of conduct promulgated by the SEC that went into effect June 30, 2020. It requires Oakpoint Advisors, LLC. to act in the best interest of their customers at the time a recommendation is made. The underlying goal of Reg BI is to improve investor protection by enhancing obligations when making recommendations and reduce potential harm to customers from conflicts of interest that will impact the recommendation. We make this disclosure available to our customers to inform you about the services we offer and our relationship with you. Among other things, this disclosure addresses the scope and terms of our relationship with you, the capacity in which we are acting, the type and scope of our services, material limitations on our services, the fees and costs you may incur, and the conflicts of interest that may exist. We make additional information available through our website, and if you require more information, or if you do not have access to the internet, or do not wish to review the information we post electronically, you can request a hard copy version of this information from your by calling 212.588.6400 or emailing info@oakpointadv.com.

 

SCOPE AND TERMS OF OUR RELATIONSHIP WITH YOU

Oakpoint Solutions, LLC., doing business as Oakpoint Advisors, LLC., is a registered broker-dealer, member FINRA/SIPC. We offer a variety of services to meet your needs. Depending on your needs and investment objectives, we will provide guidance and present you with options/solutions that suit your specific situation. Free and simple tools are available for you to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers and investing. Information about our services as well as the Form CRS [“Customer Relationship Summary”] disclosures are available at https://www.oakpointadv.com/.

 

OUR CAPACITY

In our capacity as a broker-dealer, facilitate transactions and introduce appropriate and suitable investment options to accredited investors and institutions. When we act in our capacity as a broker-dealer, we are subject to the Securities Act of 1933, the Securities Exchange Act of 1934, as amended, the rules of self-regulatory organizations, such as the Financial Industry Regulatory Authority, Inc. [FINRA], and applicable state laws. When we act as an introducing partner, we still fall under the obligation of Regulation Best Interest. More information about our investment advisory services, fees and costs, and conflicts of interest is available in our form ADV Part 3 [“Form CRS”], which is available on our website or at adviserinfo.sec.gov.

 

TYPE AND SCOPE OF SERVICES

Our financial professionals can recommend and we can effect securities transactions for you, including the buying and selling of securities [including investment funds and private placements] that can be held in brokerage accounts. Brokerage services include recommendations concerning whether to buy, sell, or hold securities. The commissions we charge will be higher or lower than those charged by other broker-dealers. We are committed to helping our clients achieve success. We utilize a wide range of tools, services, and support to help you meet your goals.

 

RISKS AND LIMITATIONS

Any investment or investment strategy involves risk of loss you should be prepared to bear. Examples of risks you could face are:

• Interest rate Risk: Fluctuations in interest rates generally cause investment values to fluctuate. For example, market values of bonds typically decline when interest rates rise, because the rising rate makes the existing bond yields less attractive.

• Market Risk: External factors independent of a security’s particular underlying circumstances will impact its value. The value of a security, bond or mutual fund can drop in reaction to tangible and intangible events and conditions, such as a political or social event or an economic condition. 6.30.2020 [5 of 20]

• Inflation Risk: Inflation means a dollar today buys more than a dollar next year. When inflation is present, your purchasing power typically decreases at the rate of inflation.

• Currency Risk: Overseas investments are subject to fluctuations in the value of the dollar against the currency of the investment’s originating country. Also known as exchange rate risk, these risks are present in international mutual funds for example.

• Reinvestment Risk: The risk that future proceeds from investments may be reinvested at a potentially lower rate of return is reinvestment risk. This risk primarily relates to fixed income securities.

• Business Risk: Risks associated with a particular industry or a specific company impact the value of investments. For example, oil-drilling companies typically have more business risk than electric companies since they depend on finding oil and then refining it efficiently before they generate a profit. An electric company generates income from customers who buy electricity regardless of economic conditions. Liquidity Risk: Liquidity means the ability to readily convert an investment into cash. Assets with many purchasers are generally more liquid. For example, Treasury Bills are highly liquid, while real estate properties are less so.

• Financial Risk: A company with excessive borrowing or that takes significant business risks to generate profit is typically at a greater risk of financial difficulty or failure. We do not have minimum account requirements, although some of the investments you can purchase through us have minimum investment requirements. Material limitations for advisory arrangements are provided in the applicable ADV 2A brochure. Notwithstanding the wide range of our brokerage services, there are certain material limitations on our services and the services of our financial professionals, and these limitations are set forth below.

• Financial Professional Limitations: Not all of our financial professionals can offer the full range of investments and services we offer. For instance, our properly licensed and registered financial professionals are only able to offer solely brokerage services. In addition, you may research your financial professional’s experience and licenses on FINRA’s BrokerCheck website at www.brokercheck.finra.org or on the SEC’s website at www.investor.gov/CRS.

• Account Monitoring: We do not monitor your account after effecting a securities transaction for you, including those investments our firm recommends. While our financial professionals remain available to assist you and may periodically review your account(s) to offer subsequent recommendations, our financial professionals do not automatically monitor your account or your investment performance after effecting a securities transaction for you. This is a material limitation on our services and the 6.30.2020 [6 of 20] services of our financial professionals.

• Discounted Commissions: Given the range of services we offer, fees will vary based on the scope of work. This is a material limitation of our services.

• Custody of Accounts: Oakpoint does not hold client funds, cash, or securities, nor does it direct money movement at the firms discretion for our clients. We do not have custody [as defined by the Securities and Exchange Commission] over client funds.

 

FEES AND COSTS

This section provides information about the material fees and costs associated with your account, transactions, and holdings.

• Transaction Fees: We are paid each time you trade in your brokerage account or make a new investment where a transaction charge is assessed. This payment is typically called a “commission,” but it Is often called a “sales charge” or a “markup.”

• Transfer Fees: Depending on the institution you may move money from/to, there may be additional fees for the money movement.

 

PERMITTED ACTIVITIES

The below are permitted activities based on your financial professionals licensing:

• Series 3 - Sell commodity futures contracts and options on those contracts

• Series 6 – Sell certain investment products like mutual funds and variable annuities. 

• Series 7 - Sell products which include stocks, bonds, options, mutual funds, and more, but exclude commodities and futures. 

• Series 9 and 10 – Permits an individual to supervise sales activities.

• Series 14 - Assesses the competency of a principal to perform their job as a compliance officer.

• Series 24 - Assesses the competency of a principal to perform their job as a principal dependent on their corequisite registrations.

• Series 63 – Qualifies candidates as securities agents.

• Series 79 – Assess knowledge and skills needed for investment banking roles.

• Series 99 - Assesses the competency of an entry-level registered representative to perform their job as an operations professional.

 

CONFLICTS OF INTEREST

We have identified certain conflicts of interest [conflicts] that relate to the recommendations we make. A conflict arises when an economic benefit incentivizes the firm to put our interests ahead of the interests of a customer. Where a conflict is unique to an arrangement, it is provided in the applicable Form ADV Part 3 [Form CRS]. Conflicts between customers and our firm are caused by a variety of arrangements, including the role we play in a transaction, compensation arrangements, or trading arrangements. The material facts relating to these conflicts are as follows:

 

• Revenue Sharing - Certain product sponsors and/or service providers pay extra compensation to the firm, referred to as revenue sharing. The firm has established revenue sharing arrangements with a select group of companies that offer a broad spectrum of products. These companies participate in activities that are designed to help facilitate the distribution of their products and/or platforms. Companies participating will have greater access to the firm through marketing activities, training, and other educational presentations so that our employees can better serve their clients.

• For some investments you purchase based on our recommendation, we receive payments from a third-party that are in addition to transaction-based payments.

• Some of our employees participate in incentive trips and receive other forms of non-cash compensation, such as being taken to lunch and other events, including educational events sponsored by other firms or managers. Typically, these incentives are based on the amount of their sales and services. To the extent our employees participate in an incentive trip or receives other forms of non-cash compensation, a conflict of interest exists in connection with the recommendation of products and services for which they receive these additional economic benefits.

• Registered employees are permitted the receipt or provision of gifts of up to $100 for per giver or recipient per year.

• Some of our employees engage in outside business activities. If they engage in any outside business activities, these activities can incentivize them to spend more time on the outside business activity rather than on his or her relationship with you. You may research any outside business activities an individual may have on FINRA’s BrokerCheck website at brokercheck.finra.org, or on the SEC’s website at investor.gov/CRS.

 

For more information about Regulation Best Interest, please visit SEC.gov or contact Oakpoint at compliance@oakpointadv.com