What is Reg BI?
About Regulation Best Interest (Reg BI)
Regulation Best Interest (Reg BI) is an SEC rule that enhances the standard of conduct for broker-dealers and their registered representatives when making recommendations to retail customers. Reg BI requires firms like BLV Securities to act in the best interest of our clients by prioritizing their needs over any financial incentives.
Best Interest Disclosure Document
BLV Securities (the "Firm" or "BLV") is a registered broker-dealer with the Financial Industry Regulatory Authority (“FINRA”). In compliance with Regulation Best Interest ("Reg BI"), this document provides you with essential information about our services, the nature of our relationship with you, and how we handle potential conflicts of interest.
Effective Date:
January, 1, 2025
Broker-Dealer Duties
As a broker-dealer, BLV Securities is committed to acting in your best interest when making recommendations. Our duties include:
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Best Interest Standard: We must ensure that any recommendations we make are in your best interest and based on your specific financial situation, investment objectives, risk tolerance, and other relevant factors.
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Suitability of Recommendations: Our recommendations will consider your financial profile, including investment experience, liquidity needs, and time horizon.
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Disclosure of Material Information: We will disclose material facts about the investments we recommend, including any associated risks and costs.
Investment Recommendations and Services
BLV Securities focuses exclusively on private placements. Our services include:
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Placement Agent Role: When acting as a placement agent, we seek to raise capital for private placements on a best-efforts basis. We do not guarantee that all capital requested by the issuer will be raised.
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Referral Role: In a referral capacity, we connect potential investors with issuers. We do not manage or monitor these investments after the referral.
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Performance Monitoring: While we do not actively manage your investments, we will monitor the performance of the underlying companies in your private placements and communicate any material developments or changes that may affect your investments.
Risks of Private Placements
Risks of Private Placements
Private placements can involve significant risks, including but not limited to:
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Lack of Liquidity: Private placements are often illiquid, meaning they cannot be easily sold or converted to cash.
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Limited Information: Issuers of private placements may provide less information compared to publicly traded companies, making it harder to evaluate the investment.
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High Risk of Loss: Investments in private placements can be speculative and may result in substantial losses, including the loss of your entire investment.
Compensation and Conflicts of Interest
Our compensation structure may create conflicts of interest:
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Transaction-Based Fees: We earn fees based on the private placements in which you invest, which may include commissions, management fees, and other charges.
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Referral Fees: We may receive fees for introducing you to third-party issuers.
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Incentives: Our compensation structure could potentially influence our recommendations.
Managing Conflicts of Interest
To address conflicts of interest, BLV Securities:
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Discloses Fees: Clearly communicate the fees associated with private placements and how they may impact your returns.
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Ensures Transparency: Strives to provide clear and transparent information about any conflicts of interest and how they are managed.
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Independent Review: May engage independent advisors to review our practices and ensure compliance with regulatory requirements.
Your Responsibilities and Rights
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Review and Monitor: It is crucial for you to regularly review your investments and ensure they meet your investment objectives and risk tolerance.
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Ask Questions: If you have any questions or concerns about our recommendations, fees, or the risks associated with private placements, please contact your financial professional.
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Understand the Risks: Fully understand the risks involved with private placements before making any investment decisions.
Additional Information
If you have any questions or concerns whatsoever, please do not hesitate to call our compliance department at:
Michael McNulty,
BLV Securities, LLC
Phone: (551) 866-0525.
BLV Securities is dedicated to acting in your best interest by providing transparent recommendations and managing potential conflicts of interest. We are committed to keeping you informed about the performance of your investments and the associated risks.
Contact Us
For any questions or concerns about our Best Interest Disclosure or need assistance, please reach out to us at: