Customer Relationship Summary
Orchard Securities, LLC (“Orchard”) is registered with the U.S. Securities and Exchange Commission (“SEC”) as a broker-dealer and is a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”). Brokerage and investment advisory services and fees differ and it is important for you to understand these differences. Free and simple tools are available to research firms and financial professionals at https://www.investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.
What Investment Services and Advice Can You Provide Me?
Orchard offers limited brokerage services to retail investors. For a small number of customers Orchard assists with the purchase of shares in direct participation programs (“DPPs”), private placements
and real estate investment trusts (“REITs”). Through its Central Trade and Transfer (“CTT”) program, Orchard also offers a secondary market for certain DPPs, as well as limited partnership interests and REITs. Generally, Orchard does not make recommendations to its customers or offer investment advice. Customers who choose to effect a transaction with Orchard make the ultimate decision regarding the purchase or sale of investments.
For additional information, please visit FINRA’s website describing Regulation Best Interest which requires broker-dealers to place their customers interests ahead of their own. https://www.finra.org/rules-guidance/key-topics/regulation-best-interest.
Conversation Starter. Ask your financial professional if using Orchard to process a transaction on your behalf is right for you.
What Fees Will I Pay?
In connection with the purchase of securites, a customer of Orchard’s will pay commissions to the firm and its brokers that are deducted from the funds invested. These commission charges may range from 3% to 10% of the total amount invested. Customers that purchase or sell shares on the CTT platform will also incur fees that are based on the size of the transaction. Typically, these fees do not exceed 10% of the total transaction value. A customer of CTT may also incur a listing fee in connection with a security sold on the CTT platform.
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce the 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 visit FINRA’s website describing Regulation Best Interest which requires broker-dealers to place their customers interests ahead of their own. https://www.finra.org/rules-guidance/key-topics/regulation-best-interest
Conversation Starter. It may be worthwhile to ask your financial professional how commissions and other fees might affect your investment. Typically, with the products offered by Orchard, for every $10,000 investment, $9,000 will be invested for you while $1,000 will cover commissions and other upfront fees.
What Are Orchard’s Legal Obligations to Its Customers When Providing Recommendations?
Orchard does not generally provide its customers with recommendations, however, it will act in your best interest and not put its interests ahead of its customers. At the same time, the way Orchard makes money creates conflicts with its customers’ interests. Orchard makes money if more of its sponsor clients’ products are sold. You should understand and ask Orchard about these conflicts as they may affect your decision-making.
Conversation Starter. Orchard offers a selection of products to customers that Orchard is compensated to assist in distributing. It is in Orchard’s best interests to see that the products it makes available as a managing broker-dealer are broadly sold.
How Do Your Financial Professionals Make Money?
Orchard’s professionals are usually compensated through salary and commissions. It is in these professionals interest to sell securities offerings as it increases their own compensation. As noted earlier, Orchard professionals do not, generally, make recommendations to Orchard customers.
Does Orchard or Any of Its Financial Professionals Have Legal or Disciplinary History?
Yes, certain Orchard professionals have disciplinary or legal disclosures. We recommend that Orchard investors review background information about Orchard professionals at brokercheck.finra.org.
Conversation Starter. You may also wish to ask your financial professional if they have any disciplinary history and ask them to explain the conduct.
For additional information about Orchard’s services, or to receive a copy of Form CRS, call (801) 316-4301
Conversation Starter. For concerns about any of Orchard’s financial professionals, please contact Adrienne Yost Hart, Chief Compliance Officer at (215) 816-2800.