EQUUS FINANCIAL CONSULTING LLC - FORM CRS CLIENT RELATIONSHIP SUMMARY

  1. INTRODUCTION

Equus Financial Consulting LLC is an SEC-registered broker-dealer and member of FINRA and SIPC. As a matter of regulatory disclosure effective June 24, 2020, we are providing this Client Relationship Summary, ("CRS") to you. It is important for you to note and understand that fees charged on brokerage transactions and investment advisory fees charged by an investment advisor differ. For those interested in finding out more about the distinction, there are free and simple tools available which provides educational materials about broker-dealers, investment advisers and investing. at investor, gov/CRS.

  1. WHAT INVESTMENT SERVICES AND ADVICE CAN YOU PROVIDE ME?

Services: Our firm is a viatical/life settlements broker. We make recommendations to retail investors who wish to sell their variable life insurance policies. We shop the policy to buyers of variable life insurance policies in order to facilitate the sale to the highest bidder. If agreed to by you, the seller, a change of ownership occurs pursuant to a written viatical/life settlement agreement. The price negotiated is based on a 'gross offer' and we charge a brokerage fee which is subtracted from the gross offer upon the successful completion of the sale. We do not offer traditional brokerage services and fees are only charged upon the completion of a successful viatical/life settlement transaction. We do not offer retail investors any other financial services.

Monitoring: We do not offer retail investors investment monitoring services.

Investment Authority: We do not accept or offer discretionary authority services.

Limited Investment Offerings: Our investment advice is limited to a one-time transaction that entails the sale of a variable life insurance policy through a viatical/life settlements transaction. We do not maintain customer accounts or offer proprietary products.

Account Minimums: We do not offer retail investors traditional brokerage services.

Additional Information: The principal owner and operator of the firm is Mr. Darryl Glatthorn.

Questions to ask us about our relationship with you and the services we offer:

  • Given my financial situation and my desire to sell my policy, why should I choose to engage a viatical/life settlement broker for their services?
  • How will you conduct price discovery and choose the buyer you'll recommend to me?
  • What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?
  1. WHAT FEES WILL I PAY?

Principal Fees and Costs: The fee paid to our financial professional, upon the successful sale of your variable life insurance policy, will be the lower of 6% of the face amount (death benefit) of the policy or 30% of the value created above the cash value of the policy at the time of the sale. Each transaction contains inherent conflicts of interest as the amount paid to the firm differs on all transactions based on the unique set of facts and circumstance on each case.

Other Fees and Costs: There are no other fees or costs to the parties involved in the transaction.

Additional Information: "Please make sure you understand what fees and costs you are paying."

Questions to ask us about the impact of fees and costs on investments:

  • Help me understand how these fees and costs might affect my transaction.
  • What are your legal obligations to me when providing recommendations to me: How else does your firm make money and what conflicts of interest to do you have?

Standard of Conduct

When we make a representation to sell your policy, we have to act in your best interest and not put our interest ahead of yours. The way we make money is directly related to obtaining the highest sale price possible on your behalf. Selling your policy is a difficult decision that may create privacy issues that are conflicts of interests. You should understand and ask us about these conflicts because they can affect the recommendations we provide to you.

Questions to ask us about conflicts of interest:

  • Once my policy has been sold to a buyer, what are my obligations to that buyer and what obligations do you have as the broker who sold the policy?
  • Will my family members be contacted and will they have any obligations?
  • Will the sale of my policy inhibit my ability to obtain life insurance in the future, should I decide to take out a new policy?
  • How might your conflicts of interest affect me, and how will you address them?

Additional Information: We do not have any relationships or arrangements with any other entity.

"How do your financial professionals make money?"

Our financial professionals are paid a fee out of the gross purchase price of the policy. Your payout amounts to the net amount after the brokerage fee which is calculated by determining the lower of 6% of the face amount of the policy or 30% of the value created. For example: a $1.2mm policy with $50K in cash value that generates a gross offer of $250,000 would create value to you, the seller of $200k ($250,000 - $50,000 in cash value). The fee would be $60,000, the lower of 6% of $1.2mm ($72,000) versus 30% of $200,000 ($60,000). Our financial professionals are not compensated based on the basis non-cash compensation.

  1. DO YOU OR YOUR FINANCIAL PROFESSIONALS HAVE LEGAL OR DISCIPLINARY HISTORY?

No, our firm and our financial professions servicing retail investors do not have any disciplinary history.

Free and simple search tools are available to retail investors who may visit www.Investor.gov/CRS to research our firm and financial professionals.

Questions to ask us about the disciplinary history of our firm and financial professionals:

  • As a financial professional, do you have any disciplinary history? For what type of conduct?
  1. ADDITIONAL INFORMATION

For additional information on our brokerage services, please see our FINRA BrokerCheck which can be found on the following link: https://brokercheck.finra.org/firm/summary/131449

If you would like to request a complimentary copy of our Client Relationship Summary, Form CRS, please contact us in writing at 78 Pine Street, New Canaan, CT 06840 or call us at 203-222-7400 and we will promptly provide it to you or please email: dglatthorn@equusfc.com

 

Questions to ask us about the contacts and complaints:

  • Who is the primary contact person? Is he or she 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?

Equus Financial Consulting LLC Form CRS Client Relationship Summary September 1,2023