June 1, 2021
Customer Relationship Summary
McKenzie Securities LLC Form CRS
McKenzie Securities LLC (“MCK”) is registered with the Securities and Exchange Commission (“SEC”) as a broker-dealer and is also a member of FINRA. Brokerage and investment advisory services and fees differ, and it is important for the retail investor 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 broker-dealers, investment advisers, and investing. All recommendations regarding your brokerage investment will be made in a broker-dealer capacity.
What investment services and advice can you provide me?
Our business is limited to making recommendations associated with private placements to accredited investors. MCK does not have any minimum investment requirements; however, some private placements have a minimum investment amount which can vary by issuer and placement. Investment minimums, if any, will be listed in the private placement memorandum (“PPM”) or similar offering documents. Only Accredited Investors may invest in Private Placements. “Accredited Investors” is defined in SEC Rule 501(a) and includes natural persons with a net worth of more than $1 million (not including the person’s primary residence) or with an annual income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount during the current year.
When we make a recommendation, you make the ultimate decision regarding the purchase or sale of investments. You may accept or reject any recommendation we make. It is your responsibility to monitor your private placement investments, and we encourage you to do so regularly. We do not commit to provide on-going monitoring of your investments.
Additional information about our services are available on our Best Interest Disclosure Brochure and on our website at mckenzieaa.com.
When considering our services, ask your financial professional:
Given my financial situation, should I choose a brokerage 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 mean?
What fees will I pay?
You will pay certain fees (commissions and sales concessions) in connection with investing in a private placement. The applicable fees will vary from offering to offering. Common fees include management fees, organizational and operating expense reimbursement and profit participation/carried interest fees.
Where these fees apply, the more transactions you enter into, the more compensation that we and your financial professional receive. This compensation creates an incentive for us to encourage you to invest in private placements. Commissions and other sales concessions are charged when a transaction occurs. You will be charged more the more transactions you do with our Firm, and we, therefore, have an incentive to encourage you to invest in private placements.
Transaction-based fees are based on a host of factors, including, but not limited to: issuer and the type of offering participated in, size of your transaction and/or overall value of your investment, frequency of your private placement investments, and available discounts and/or fee waivers.
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.
Additional information about our fees are available on our Best Interest Disclosure Document and in the PPM or similar offering document.
When considering our services, 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 providing recommendations as my broker-dealer? How else does the firm make money and what conflicts of interest do you have?
When we provide you with a recommendation, 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 recommendations and investment advice we provide you. Here are some examples to help you understand what this means.
MCK primarily earns fees based on the amount invested. Therefore, we have a financial incentive to encourage you to invest in Private Placements we offer.
When considering our services, ask our financial professional:
How might your conflicts of interest affect me, and how will you address them?
Additional information about our conflicts of interest are available on our Best Interest Disclosure Brochure and in the PPM or similar offering document.
How do your financial professionals make money?
Registered Representatives earn a portion of the commissions and other transaction fees paid by the issuer to MCK. As commissions are based on a number of factors, so is the compensation paid to our Registered Representatives. For example, certain issuers pay higher commission rates than others. Employee bonuses may be paid based on the overall profitability of MCK.
Do you or your financial professionals have legal or disciplinary history?
No, visit Investor.gov/CRS for a free and simple search tool to research us and our financial professionals.
When considering our services, ask your financial professional:
As a financial professional, do you have any disciplinary history? For what type of conduct.
Additional Information
Additional information, including our most recent Relationship Summary, is available at our website at mckenzieaa.com; or you can call your Registered Representative at (866) 588-4434 to request up-to-date information and a copy of the Relationship Summary.
When considering our services, ask your financial professional:
Who is my primary contact person?
Is she or he a representative of an investment adviser or a broker dealer?
Who can I talk to if I have concerns about how this person is treating me?