IGM Brokerage is registered as a broker-dealer with FINRA and a member of the Securities Investor Protection Corporation. Free and simple tools are available for you to use at Investor.gov/CRS | Investor.gov, a website maintained by the SEC. These tools can provide you with educational materials about broker-dealers, investment advisers, and investing. This relationship summary provides information that helps you make an informed decision about whether or not to invest with us.
IGM Brokerage offers one client relationship, Brokerage. In a Brokerage relationship, you pay a transaction fee called a “commission” when you buy and sell securities. The majority of IGM’s business is engaged in the private placement of securities to qualified investors. IGM does not hold customer accounts, accept customer funds or securities, or facilitate the clearing of securities through any third party clearing firms. IGM qualified clients to private issuers whose offerings have been approved on the IGM platform. The sole decision to accept the investment is with the private issuer. IGM does not have discretion or access to any investor portfolios or accounts and will not monitor the performance of any of the securities introduced from private issuers.
Although IGM does not have a stated minimum initial investment amount, all of our introductions are intended for accredited investors, institutions, family offices, and other similar sophisticated investors. Each investment offering introduced by IGM has their own minimum investment amount the issuer has chosen to accept. IGM’s registered representatives are required to maintain certain securities licenses (such as a Series 7) that allow them to engage in the selling of private securities. It is important to understand that these licenses merely demonstrate that the financial professional met the testing standards of the sponsor and does not demonstrate expertise of the financial professional in any of the securities or products introduced.
As part of your brokerage relationship with IGM you will pay fees or commissions on each investment transaction in which you choose to participate. Depending on the type of investment, fees may be structured and assessed differently. The detail and schedule of fees will be disclosed to you by your financial professional and the private issuer prior to the funding of any investment. These related fees may be assessed in one of the following ways: 1) A private investment into a fund will charge you either management fees, performance fees, or both. IGM will be paid by the fund’s manager or sponsor a percentage of those fees charged to your investment. 2) In a direct private investment, IGM will charge a commission as a percent of the total investment amount. The buyer or the seller of the securities will pay this commission, and in some cases, the commission is shared between the buyer and seller. IGM could also receive equity in the form of warrants or stock as payment. These fees may reduce the amount of your investment. You may also incur other transaction fees for services directly from the issuer. All commissions will be disclosed to you in the issuer’s disclosure documents. 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 could potentially gain on your investments over time. i(x) only earns these fees, or is paid a commission, when you make an investment into the underlying issuer’s offering introduced to you by i(x). Please make sure you understand what commissions and expenses you will be paying.
When IGM provides 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, we provide you.
Here are some examples to help you understand what this means: 1) IGM only makes money if you complete a transaction in a private securities offering we have recommended. 2) Transaction-based charges create an incentive for us to recommend more frequent investments than non-transaction-based charges. 3) Our financial professionals sometimes invest in the same securities as you; therefore, they may have an incentive to favor their interests over yours. 4) Certain products may pay our Firm or our financial professionals more than other products. Please ask your financial professional to detail the commission to be received from the recommended investment against the other investments that may impose a lower commission.
The financial professionals at IGM receive commissions generated from the selling of the private placement securities to qualified investors. Financial professionals at IGM are not paid a salary based on assets under management and will only receive commissions if you make an investment with one of our approved private issuer offerings. This creates a conflict of interest you should be aware of. Additionally, IGM financial professionals are paid a commission whether your investment makes or loses money. IGM has an incentive to introduce investments where the issuer or investment manager shares the revenue they earn with us. You can find other private issuers elsewhere who might be better suited to your investment needs or goals. Some of our Firm’s registered representatives are engaged in outside business activities. These activities may pose an additional conflict to your investment. IGM supervises the business activities of our financial professionals through our compliance program. Outside business activities can be found on FINRA’s BrokerCheck.
IGM as a firm does not have any have legal or disciplinary events, but some of the financial professionals do. Visit FINRA BrokerCheck, or Investor.gov/CRS for a free and simple search tool to research our firm and financial professionals.
If you require additional information, or if you want to discuss your investing experience at IGM Brokerage, please contact Justine Kidwell, Chief Compliance Officer, at 317.502.7243 or jkidwell@igmbd.com.
Please visit these resources for additional information:
www.investopedia.com/financial-term-dictionary-4769738
www.investor.gov
www.finra.org
www.brokercheck.finra.org