Investment Recommendations

Introduction

The purpose of this disclosure is to provide you, the retail investor, with information about how Open to the Public Investing, Inc. (“Public Investing”), an SEC- and FINRA-registered broker-dealer, provides investment recommendations (“Investment Recommendations” or “Recommendations”) to retail investors.

Public Investing acts as a broker-dealer when it makes a Recommendation to you. Each Recommendation is made in your best interest.

This document will provide you with information about how Public Investing makes Recommendations, the limitations of those Recommendations, the fees and expenses associated with Recommendations, and material facts about conflicts of interest that may exist. You should read this document carefully before participating in Investment Recommendations. Additional information on Investment Recommendations can be found in the Public Form CRS, Public Investing Brokerage Agreement, and Fee Schedule.

At this time, Public Investing only offers Recommendations to members in our Concierge Program who request Recommendations about how to allocate cash among several highly liquid cash management options on Public’s platform including brokerage cash, High-Yield Cash Accounts (“HYCA”), Treasuries offered by Jiko Securities, Inc. (“Jiko Treasury Account”), Treasury bonds directly, or ETF products that invest in primarily short dated US Government debt.

Type and Scope of Recommendations

While there is no specific minimum to be invited to join the Public Concierge Program, Members generally have significant assets on the platform. Invitations are at the sole discretion of Public Investing.

From time to time, on an ad hoc basis or at the request of a Concierge Member via instant message, email, or other electronic means of communication, a registered representative associated with Public Investing (“registered representatives”) may make a recommendation to allocate cash among various liquid securities, cash, cash equivalents, or other Public Investing accounts such as the Jiko Treasury Account.

Prior to making the recommendation, Public Investing registered representatives will review suitability information collected from a Member when that Member onboards onto the platform. It is the responsibility of the Member to ensure that such information is accurate. Additionally, Public Investing registered representatives may ask additional questions to ensure they have a fuller understanding of a particular Member’s financial goals. Such questions may, but do not have to, include: (1) how long the Member plans to keep the funds in a cash-alternative product; (2) what amount does the Member want to invest; (3) how willing is the Member to make reinvestment decisions from time to time; and (4) how does the Member want to balance liquidity and yield? These questions are not exhaustive and other questions may, or may not, be asked.

When making a Recommendation, Public Investing registered representatives may consider a Member’s liquidity needs, sensitivity to taxes, willingness to monitor their account, and their investment objectives prior to making a recommendation. Please note Public Investing is not a tax advisor and does not purport to give tax advice. Similarly, the scope of Recommendations made by Public Investing registered representatives does not include determining if the stated amount of cash a Member wishes to invest in a cash-management product is an appropriate percentage of their overall investment portfolio.

When we make such a Recommendation, it is up to you to follow or decline that Recommendation. Public Investing buys and sells securities only at your direction and will not execute any transaction without your prior approval.

Please note that these Recommendations are made by Public Investing in our capacity as a broker-dealer and, as such, we will not monitor, evaluate, review or update any Recommendation made by Public Investing. Recommendations are only applicable at the time they are made and if you chose not to take action on a particular Recommendation, it can no longer be relied upon at a later time. In that circumstance you should obtain a new Recommendation. At this time, Public Investing only makes Recommendations in its capacity as a broker-dealer and does not hold itself out as an Investment Adviser.

Fees and Costs

All Public Investing’s fees and costs for particular brokerage services can be found in our Fee Schedule. There is no cost to receive a Recommendation on an ad hoc basis. The fees applicable do not change based on whether you engage in the particular brokerage activity pursuant to a Public Investing Recommendation or otherwise. For example, equities trades on Public Investing do not have a commission, regardless of whether they are made on a self-directed basis or pursuant to a Recommendation. Similarly, Public Investing’s HYCA will pay the same rate to a Member regardless of whether a Member invests pursuant to a Recommendation.

Additionally, certain investments have associated costs. For example, ETFs typically have an expense ratio associated with the product. Please consult the particular product’s prospectus for a full list of fees associated with the product. For avoidance of doubt, the only fees Public Investing receives are those listed on our Fee Schedule. These fees, plus any additional costs associated with the Recommendation, will be considered by Public Investing, as well as reasonable alternatives that could be higher or lower cost, when making a Recommendation.

What limitations apply to what Public Investing representatives can recommend?

Public Investing registered representatives only consider investments and alternatives available on Public Investing’s platforms. They follow policies and procedures designed to ensure that Recommendations made to you are in your best interest. All Recommendations follow well known investing principles and are based on your specific circumstances and needs, which are based on information you provide to us about your specific investing goals and experience. Public Investing does not independently verify the accuracy of your specific needs as described to Public Investing by you. All Recommendations comply with applicable laws and regulations.

Recommendations have the following limitations:

At this time, Public Investing only makes recommendations to invest cash in Cash Equivalents, or other similar products: Currently, we only offer Recommendations to invest cash in:

  1. Brokerage Cash
  2. HYCA
  3. Jiko Treasury Account
  4. Directly into US Treasuries
  5. Ultra-Short Treasury ETFs

It is your responsibility to monitor your investments after you have purchased them. Public Investing will not rebalance your portfolio on your behalf.

Investment Recommendations are based on the information you have provided to us at the time the Investment Recommendation is made. If you purchase any or all individual assets included in an Investment Recommendation at a later date, or purchase an Investment Recommendation Plan at a later date, then these are self-directed purchases and not Investment Recommendations.

Public Investing does not look to the other holdings you may have on Public when making an Investment Recommendation.

While the questions we ask are designed to capture a holistic picture of you, they do not capture all nuances related to your individual financial situation. If you feel that there is information important to Public Investing’s understanding of your financial profile that is not covered by Public Investing’s questions, then you should not participate in Investment Recommendations on Public.

Recommendations are only available to U.S. residents residing within the United States. Other restrictions may apply as determined from time to time by Public Investing in its sole discretion and without notice

Conflicts of Interest

Public Investing makes more or less money depending on the size of your account, the assets in it, the amount you trade, the type of trading you do, and could make money based on you taking action based on a Recommendation we make. Our registered representatives do not get paid commissions but some may receive additional compensation based on achieving certain revenue or other performance metrics. Regardless, Public Investing may have a conflict with you whenever we make a Recommendation, particularly as between products where Public may make more revenue with one versus another. For example, all else being equal, Public earns more revenue on cash held in a Brokerage Cash Account versus a HYCA.

A list of our revenue sharing and marketing arrangements can be found below in Appendix I. Public Investing also has financial relationships with third parties which could present a conflict of interest including certain ETF providers. Anytime a recommendation is made to you in which Public Investing may have such a financial relationship with a third party whose product is being recommended, it will be disclosed.

Additionally, Public Investing has other subsidiaries which are not broker-dealers, and the activities of these other subsidiaries create conflicts of interest between Public Investing and the other subsidiaries, including competing priorities, shared services and other more nuanced conflicts surrounding resource allocation.

Public may have relationships with certain vendors who are also providers of other services for affiliates. Additionally, directors, officers, or owners may have relationships with other service providers for Public Investing.

Material Risks With Recommendations

All investments bear risk. For the specific risks of any particular investment, please consult that investment’s prospectus, offering document, or other applicable disclosure. Our recommendations are based on a number of pieces of information provided by you and which can change over time. While we take care in making recommendations to you, these factors can change and information provided by you is not independently verified by Public Investing. All investments include a risk that you may lose money and there is no guarantee that any particular recommendation will meet your goals or perform as expected.

Appendix I: Revenue Sharing and Marketing Arrangements

Below is a list of ETF families or other entities that made revenue sharing, marketing, or other payments to Open to the Public Investing, Inc. (“Public Investing”) or its affiliates during 2022 or 2023. Entities are listed alphabetically. These payments include payments based on the value of investments or transactions from a particular partner on the Public platform as well as sponsorship payments for marketing or other products and services on the Public platform.

Public Investing or its registered representatives may recommend products to certain customers, upon request, which are sponsored by partners from which Public Investing receives payments or participates in revenue sharing. Any such arrangement will be disclosed to the client prior to executing the plan.

Companies with which Public Investing or its affiliates has a revenue sharing agreement are marked with an asterisk (*). Companies where Public Investing, its affiliates, or officers have an equity interest are marked a dagger (†). These payments may include revenue sharing payments from Public Investing’s clearing broker, Apex Clearing Corporation, the independent third party at which Public Investing’s clients can access certain Crypto assets, Bakkt Crypto LLC, and the administrator of Treasury Accounts, Jiko Group, Inc. Transactions recommended by Public Investing or its registered representatives may lead to additional revenue being generated by one or more of these entities.

These agreements present a conflict of interest between Public Investing on the one hand and its clients on the other.

Amberwave Partners
*Apex Clearing Corporation
*Bakkt Crypto LLC
BlackRock Fund Advisors
*Engine No.1
Global X Management Company
*†Jiko Group, Inc.
LifeGoal Investments
Lucania Investments
†Moment Technologies, Inc.
Rafferty Asset Management
Tema ETFs
Unlimited Funds

January 2024