Wallace Finance Co. (“Wallace”) is an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”). Investment advisory and brokerage services and fees differ; therefore, it is important for you to understand the differences.
Free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about investment advisers, broker-dealers, and investing.
What investment services and advice can you provide me?
We offer investment advisory services to retail investors via a self-directed mobile application (“Platform”) that provides tools designed to aid investors in automatic structuring and purchasing of securities. Wallace does not trade accounts for users of the Platform. Users select and trade their accounts using the Platform. Wallace does not monitor user accounts.
Wallace does not trade user accounts and does not have discretion over the accounts.
Users of the Platform will be able to modify stock indexes and ETF holdings, or create their own custom index thorough modified direct indexing, combining stocks into a “strategy.” Wallace has an AI tool built in to help facilitate modified direct indexing, although the tool does not provide any advice. Wallace does not require a minimum account size for opening and maintaining an account.
For additional Information, please see our Form ADV Part 2A (with special emphasis on Items 4, 7, and 16) which can be found on the SEC website at adviserinfo.sec.gov. The firm CRD number is 340165.
What fees will I pay?
Principal Fees: We are compensated for the use of the Platform by charging an ongoing asset-based fee equal to 0.25% per annum. The fee is calculated daily base on the market value of the user account, and deducted by the Broker from the user account at the end of each month. The fee is not negotiable.
Other Fees and Costs: Wallace’sfee is exclusive of brokerage commissions, transaction fees, and other related costs and expenses which shall be incurred by the client. You may incur certain charges imposed by custodians, brokers, custodial fees, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions. ETFs also charge internal management fees, which are disclosed in the ETFs prospectuses. These fees will generally include a management fee and other fund expenses. All fees paid to Wallace for use of the Platform are separate and distinct from the fees and expenses charged by ETFs to their shareholders.
Additional Information: 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. More detailed information about our fees and costs are included in our Form ADV Part 2A (Item 5).
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 have 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.
Wallace and/or its investment advisor representatives may from time to time purchase or sell products that they may recommend to users. This practice creates conflicts of interest in that personnel of Wallace can take advantage of the advance knowledge of firm securities trading and trade their personal accounts ahead of the user trades or recommend trades in user accounts that may affect the price of the securities owned by the Investment Advisor Representatives. These arrangements and additional information about other conflicts of interest are discussed in more detail in our Form ADV Part 2A.
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 IARs are compensated through the receipt of a portion of revenue we receive for the advisory services we provide. The portion paid to your IAR generally does not vary based on the type of investments that are used in the Platform.
Do you or your financial professionals have legal or disciplinary history?
No. We invite you to visit Investor.gov/CRS for a free and simple search tool to research our firm and financial professionals.
We encourage you to seek out additional information about our investment advisory services in our Form ADV Brochure on Investor.gov or adviserinfo.sec.gov (CRD #340165). Alternatively, you can call Wallace at (903) 571- 7493 to speak with us directly to request up-to-date information and request a copy of the relationship summary.
