Arta Finance (Arta, “we”, “us”, “our”)
Rev. October 12, 2022
Response: If you are interested in opening an account where you receive investment recommendations or advice about whether to buy or sell securities, investment strategies (e.g., asset allocations, account type recommendations), or account monitoring, and you make all of your own investment decisions, then consider a self-directed investment advisory account. Arta offers such self-directed investment accounts. Arta generally requires a $250,000 investment minimum.
If you receive a recommendation from Arta, we will make that recommendation in your best interest. Arta offers recommendations (“Recommendations”) to certain eligible customers through the use of a web-based mobile interface (“Platform”). Recommendations are derived from Arta’s proprietary algorithm (“Algorithm”), which has been developed by a team of machine learning researchers and finance professionals.
When your account is managed by Arta on a discretionary basis, Arta will automatically invest and allocate your funds on your behalf through the use of the Algorithm, as well as any relevant information you have provided about your financial goals and circumstances. When you receive an investment recommendation from Arta, that recommendation will be generated by the Algorithm, rather than a single person or team of people.
When your account is self-directed, and you make all of your own investment decisions in response to any recommendations provided to you, the education and other qualifications of our financial professionals are not directly relevant to your investment decisions. Arta Finance professionals are available to provide purely administrative account support through an online email system and phone support, which you can request through the Arta Platform.
Should you decide to engage our non-discretionary services, you must be comfortable with investing your assets on your own.
Arta Finance is registered as an investment adviser with the Securities and Exchange Commission (“SEC”). Arta Finance’s Central Registration Depository Number (“CRD”) is 318714 and Arta Securities’ CRD is 801-123662.
Response: Arta generally requires a $250,000 investment minimum. If you choose to open a self-directed brokerage account through Arta and direct us to purchase certain securities, you will not pay commissions on your trades.
When you open a non-discretionary account with Arta, you are ultimately responsible for the investment of your assets relative to any recommendations that you may receive from Arta via the Platform. Non-Discretionary accounts are subject to the annual subscription fee.
When you open a discretionary account with Arta, you are able to allocate various funds into various recommended strategies. Once such allocation occurs, Arta will automatically invest your assets relative to the recommendations derived from the Algorithm for each respective investment strategy. In addition to the annual subscription fee, discretionary accounts are subject to fees based on assets under management and portfolio performance. These fees vary by investment strategy and, in the case of performance fees, by portfolio performance. Performance fees are only assessed to Qualified Investors, as defined by the Investment Advisers Act of 1940. Any fees applied will reduce your amount invested and your return on investment.
Response: For assets under management fee–based advisory accounts, the more money you invest, the more compensation we earn.
Our employees may transact in the same securities that clients may transact in. This may pose a conflict of interest. However, we have adopted policies and procedures designed to mitigate such conflicts in favor of our clients. We do not participate in any revenue sharing and do not receive compensation from third-parties when we recommend or sell certain products. We engage in principal trading for the sole purpose of testing the Algorithm and Arta’s strategies. We do not purchase securities in Arta Finance’s name and then sell such securities to clients. We do not offer proprietary products at this time.
Arta encourages you to read and familiarize yourself with disclosure documents relevant to your relationship with us.
Response: No, Arta and its employees do not have any disciplinary history.
Response: Our services are delivered entirely through the Platform. Additionally, with respect to non-discretionary accounts, your account is entirely self-directed. However, certain customer service representatives are able to assist you with your questions and concerns by emailing email@example.com or by requesting support through the Platform.