512-456-7554
Info@RezFin.com
512-456-7554
Info@RezFin.com
Wealth Management
Austin

ADV Part 2AB

Resonance Financial, LLC

2809 Welton Cliff Dr.

Cedar Park, TX 78613

512-456-7554

www.rezfin.com

December 2021

This Brochure provides information about the qualifications and business practices of Resonance Financial, LLC.  If you have any questions about the contents of this Brochure, please contact us at (512) 456-7554 or via email at info@rezfin.com.  The information in this Brochure has not been approved or verified by the United States Securities and Exchange Commission (“SEC”) or by any state securities authority.

Resonance Financial, LLC (“Resonance Financial”) is a Registered Investment Adviser.  Registration of an Investment Adviser does not imply any level of skill or training.  The oral and written communications of an Adviser provide you with information that you may use to determine whether to hire or retain them.

 Additional information about Resonance Financial is also available via the SEC’s website www.adviserinfo.sec.gov.  You can search this site by using a unique identifying number, known as a CRD number.  The CRD number for Resonance Financial is 171095.  The SEC’s web site also provides information about any persons affiliated with Resonance Financial who are registered, or are required to be registered, as Investment Adviser Representatives of Resonance Financial.               

Item 2 – Material Changes


Our last brochure filing was made in December 2021.  Since our last filing, we have had the following material changes:

  • Item 4 has been amended to reflect our total assets under management as of December 31, 2021.
  • Item 18 has been amended to show receipt of $20,832 in 2021 for PPP from CARES act.
  • Item 2 on Part 2B.  CFP® removed due to non-renewal from inadequate continue education requirements.

We will ensure that you receive a summary of any material changes to this and subsequent Brochures within 90 days of the close of our business’ fiscal year end which is December 31st.  We will provide other ongoing disclosure information about material changes as they occur.  We will also provide you with information on how to obtain the complete brochure.  Currently, our Brochure may be requested at any time, without charge, by contacting Jason Self at (512) 456-7554.

                                                                                                                    

 


Item 3 – Table of Contents


Item 2 – Material Changes. 2

Item 3 – Table of Contents. 3

Item 4 – Advisory Business Introduction. 5

Services. 5

1.      Financial Planning. 6

2.      Asset Management. 6

3.      Other Services. 8

Item 5 – Fees and Compensation. 8

1.      Financial Planning/Consulting Fees. 9

2.      Asset Management Fee Schedule. 10

3.      Other Fees. 11

Item 6 – Performance Based Fee and Side by Side Management. 11

Item 7 – Types of Client(s). 11

Item 8 – Methods of Analysis, Investment Strategies and Risk of Loss. 11

1.      Fundamental Analysis. 11

2.      Risks. 12

Item 9 – Disciplinary Information. 14

Item 10 – Other Financial Industry Activities and Affiliations. 15

Item 11 – Code of Ethics, Participation or Interest in Client Accounts and Personal Trading. 15

1.      General Information. 15

2.      Participation or Interest in Client Accounts. 15

3.      Personal Trading. 16

4.      Privacy Statement. 16

5.      Conflicts of Interest. 16

Item 12 – Brokerage Practices. 17

1.      Soft Dollars. 17

2.      Best Execution. 17

3.      Brokerage for Client Referrals. 17

4.      Directed Brokerage. 18

5.      Trading. 18

Item 13 – Review of Accounts. 18

1.      Reviews. 18

2.      Reports. 18

Item 14 – Client Referrals and Other Compensation. 19

Item 15 – Custody. 19

Item 16 – Investment Discretion. 19

Item 17 – Voting Client Securities. 19

Item 18 – Financial Information. 20

Item 19 – Requirements for State Registered Advisers. 20

ADV Part 2B Brochure Supplement – Jason Self. 21

Item 1 – Cover Page. 21

Item 2 – Educational Background and Business Experience. 22

Item 3 – Disciplinary History. 24

Item 4 – Other Business Activities. 24

Item 5 – Additional Compensation. 24

Item 6 – Supervision. 24

Item 7 – Requirements for State-Registered Advisers. 24

 

Item 4 – Advisory Business Introduction


Resonance Financial is a Registered Investment Adviser (“Adviser”) which offers investment advice, and other financial services to clients.

We provide investment advice through Investment Adviser Representatives (“Advisor”) associated with us.  These individuals are appropriately licensed, qualified, and authorized to provide advisory services on our behalf.  In addition, all advisors are required to have a college degree, professional designation, or equivalent professional experience.

Resonance Financial was founded in 2014 by Jason Self who serves as Chief Compliance Officer, Managing Member, and is also the owner of Registered Investment Adviser Resonance Financial.  We provide asset management, financial planning, and consulting services to high net worth individuals, trusts, and foundations.  Our minimum account opening balance is $500,000 which may be negotiable based upon certain circumstances 

We are committed to the precept that by placing the client’s interests first, we will add value to the asset management process and earn the client’s trust and respect.  We value long term relationships with our clients whom we regard as strategic partners in our business. 

Services

We provide various asset management, financial planning, and consulting services, with an emphasis on retirement planning services.  Our focus is on helping you develop and execute plans that are designed to build and preserve your wealth.

As of December 31, 2021, we managed assets totaling $40,789,341.  All assets were managed on a discretionary basis.

We do not participate in wrap fee programs.

Accounts may be managed on a discretionary or non-discretionary basis.  Accounts managed on a discretionary basis means that you have given us the authority to determine the following without your consent:

  • Securities to be bought or sold for your account
  • Amount of securities to be bought or sold for your account
  • Broker-dealer to be used for a purchase or sale of securities for your account
  • Commission rates to be paid to a broker or dealer for your securities transaction.

While we may or may not have trading discretion on your account (i.e., placing trades in your account without your approval), trading activity is generally limited to help minimize your trading costs.  Trading may be required to meet initial allocation targets, after substantial cash deposits that require investment allocation, and/or after a request for a withdrawal that requires liquidation of a position.  Additionally, your account may be rebalanced or reallocated periodically in order to reestablish the targeted percentages of your initial asset allocation.  This rebalancing or reallocation will occur on the schedule we have determined together.  You will be responsible for any and all tax consequences resulting from any rebalancing or reallocation of the account.  We are not tax professionals and do not give tax advice.  However, we will work with your tax professionals to assist you with tax planning.  You will have the opportunity to meet with us periodically to review the assets in your account. 

1.     Financial Planning

We provide services such as comprehensive financial planning.  Fee based financial planning is a comprehensive relationship which incorporates many different aspects of your financial status into an overall plan that meets your goals and objectives.  The financial planning relationship consists of face-to-face meetings and ad hoc meetings with you and/or your other advisors (attorneys, accountants, etc.) as necessary.

In performing financial planning services, we typically examine and analyze your overall financial situation, which may include issues such as taxes, overall debt, credit, business planning, retirement savings and reviewing your current investment program.  Our services may focus on all or only one of these areas depending upon the scope of our engagement with you. 

It is essential that you provide the information and documentation we request regarding your income, investments, estate plan, etc.  We will discuss your investment objectives, needs and goals, but you are obligated to inform us of any changes.  We do not verify any information obtained from you, your attorney, accountant or other professionals.

If you engage us to perform these services, you will receive a written agreement detailing the services, fees, terms and conditions of the relationship.  You will also receive this Brochure.  You are under no obligation to implement recommendations through us.  You may implement your financial plan through any financial organization of your choice.

We obtain information from a wide variety of publicly available sources.  We do not have any inside private information about any investments that are recommended.  All recommendations developed by us are based upon our professional judgment.  We cannot guarantee the results of any of our recommendations.  Choosing which advice to follow is your decision.

2.     Asset Management

Asset management is the professional management of securities (stocks, bonds and other securities) and assets (e.g., real estate) in order to meet your specified investment goals.  With an Asset Management Account, you engage us to assist you in developing a personalized asset allocation program and custom-tailored portfolio designed to meet your unique investment objectives.  The investments in the portfolio account may include mutual funds, stocks, bonds, equity options, futures, etc. 

We will meet with you to discuss your financial circumstances, investment goals and objectives, and to determine your risk tolerance.  We will ask you to provide statements summarizing current investments, income and other earnings, recent tax returns, retirement plan information, other assets and liabilities, wills and trusts, insurance policies, and other pertinent information.  We can also work with you, in a consulting capacity, to create an Investment Policy Statement (IPS) that will serve as the roadmap to guide your wealth management program.  Your IPS will incorporate many different aspects of your financial status into an overall plan designed to meet your goals and objectives.  We will create a formal IPS and deliver it to you upon completion.

Based on the information you share with us, we will analyze your situation and recommend an appropriate asset allocation or investment strategy.  You will be provided with a targeted strategic allocation of assets by class, as well as limited investment advice.  Our recommendations and ongoing management are based upon your investment goals and objectives, risk tolerance, and the investment portfolio you have selected.  We will monitor the account, trade as necessary, and communicate regularly with you.  Your circumstances shall be monitored in annual account reviews.  These reviews will be conducted in person, by telephone conference, and/or via a written inquiry/questionnaire.  We will work with you on an ongoing basis to evaluate your asset allocation as well as rebalance your portfolio to keep it in line with your goals as necessary.  We will be reasonably available to help you with questions about your account.  You will also receive our Advisory Agreement which describes what services you will receive and what fees you will be charged.

We will:

  • Review your present financial situation
  • Monitor and track assets under management
  • Provide portfolio statements, periodic rate of return reports, asset allocation statement, rebalanced statements as needed
  • Advise on asset selection
  • Determine market divisions through asset allocation models
  • Provide research and information on performance and fund management changes
  • Build a risk management profile for you
  • Assist you in setting and monitoring goals and objectives
  • Provide personal consultations as necessary upon your request or as needed.

You are obligated to notify us promptly when your financial situation, goals, objectives, or needs change.

You shall have the ability to impose reasonable restrictions on the management of your account, including the ability to instruct us not to purchase certain mutual funds, stocks or other securities.  These restrictions may be a specific company security, industry sector, asset class, or any other restriction you request.

Under certain conditions, securities from outside accounts may be transferred into your advisory account; however, we may recommend that you sell any security if we believe that it is not suitable for the current recommended investment strategy.  You are responsible for any taxable events in these instances.  Certain assumptions may be made with respect to interest and inflation rates and the use of past trends and performance of the market and economy.  Past performance is not indicative of future results.

If you decide to implement our recommendations, we will help you open a custodial account(s).  The funds in your account will generally be held in a separate account, in your name, at an independent custodian, and not with us.  We recommend using Schwab Advisor Services; however, you may use any custodian you wish.  The identity of your custodian will be communicated to you before the account is opened.  

You will enter into a separate custodial agreement with the custodian.  This agreement, among other things, authorizes the custodian to take instructions from us regarding all investment decisions for your account.  We will select the securities bought and sold and the amount to be bought and sold, within the parameters of the objectives and risk tolerance of your account.  The custodian will effect transactions, deliver securities, make payments and do what we instruct.  You are notified of any purchases or sales through trade confirmations and quarterly statements that are provided by the custodian.  These statements list the total value at the start of the quarter, itemize all transaction activity during the quarter, and list the types, amounts, and total value of securities held as of the end of the quarter.  Your statement may be in either printed or electronic form based upon your preferences.  You will at all times maintain full and complete ownership rights to all assets held in your account, including the right to withdraw securities or cash, proxy voting and receiving transaction confirmations. 

We will also provide you with a quarterly performance statement starting at the end of the first full calendar quarter after signing the Client Advisory Agreement.  These statements give you additional feedback regarding performance, educate you about our long-term investment philosophy, and describe any changes in current strategy and allocation along with the reasons for making these changes.

We are available during normal business hours either by telephone, fax, email, or in person by appointment to answer your questions.

3.     Other Services

We also offer project-based consulting services including portfolio reviews and investment policy statements for an hourly fee.  If your needs do not fit into any of these services we can also provide on-demand financial consulting and ongoing annual consulting.

We can provide research and advice concerning any legal and legitimate investment for which public information is readily available.  We can also provide an-in depth analysis of your financial situation or other defined projects as requested.

Item 5 – Fees and Compensation


We provide asset management, consulting, and financial planning services for a fee.  Our fees do not include brokerage commissions, transaction fees, and other related costs and expenses.  You may incur certain charges imposed by custodians, and other third parties.  These include fees charged by managers, custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions.  Mutual funds, money market funds and exchange-traded funds (ETFs) also charge internal management fees, which are disclosed in the fund’s prospectus.  These fees may include, but are not limited to, a management fee, upfront sales charges, and other fund expenses.  We do not receive any compensation from these fees.  All of these fees are in addition to the management fee you pay us.  You should review all fees charged to fully understand the total amount of fees you will pay.  Services similar to those offered by us may be available elsewhere for more or less than the amounts we charge.

You could invest in a mutual fund directly, without our services.  In that case, you would not receive the services provided by us which are designed, among other things, to assist you in determining which mutual fund or funds are most appropriate to your financial condition and objectives.  Our Advisory-Agreement/Financial-Planning-Agreement defines what fees are charged and their frequency.  

1.     Financial Planning/Consulting Fees

You may want us to create a financial plan for you.  We will work with you to create the plan.  We can provide analysis and recommendations for retirement needs, investment needs, and college education planning.  You can have us create a full financial plan or select any of the individual modules.  We will charge an hourly fee of $250, which may be negotiable depending upon the nature and complexity of the client’s circumstances.  An estimate for total hours will be determined at the start of the advisory relationship.

The hourly fee shown above is the minimum for financial plans.  You may have isolated instances where you need assistance.  The usual fee for us to provide analysis, but not create a plan, is $350 per hour which may be negotiable depending upon the nature and complexity of your circumstances.  An estimate for total hours will be determined at the start of the advisory relationship.  

The Investment Advisory Agreement will show the fee you will pay.  Hourly fees are charged in advance and are non-refundable.  In the event that you cancel the Financial Planning Agreement, you will be responsible for the actual hours spent preparing the financial plan, up to the cancellation date, at the agreed upon hourly rate.  A deposit of 50% of the fee is due at the time the agreement is signed.  The remainder of the fee is due upon presentation of an investment plan or the rendering of consulting services.  Investment plans will be presented to you within 90 days of the contract date, provided that all information needed to prepare the investment plan has been promptly provided to us.  We do not accept prepayment of more than $500 in fees per client, six months or more in advance.  The financial planning agreement will terminate once you receive the final plan.

Either party may terminate the relationship with a thirty (30) day written notice.  Upon termination of any account, any prepaid fees that are in excess of the management services performed will be promptly refunded to you.  Any fees that are due, but have not been paid, will be billed to you and are due immediately.

If the plan is implemented through us, we may receive compensation from the sale of advisory services recommended in the financial plan.  This compensation would be in addition to the financial planning fee you pay.  The fees and expenses you pay for the purchase of these products may be more or less than the expenses you would pay should you decide to implement our recommendations through another investment advisory firm or broker-dealer and are typically determined by the broker-dealer or investment company sponsoring the product.  Therefore, a conflict of interest may exist between our interests and your interests since we may recommend services that pay us compensation.  We may have an incentive to recommend particular services based upon the potential compensation rather than your needs.  This potential conflict is addressed in our Code of Ethics.

Based upon your needs, we may also provide consultations throughout the year to advise and counsel you about other financial issues.  We can help you with transition planning, major transaction analysis, coordinated with cash flow needs, retirement needs, investment needs, and college education planning.

All recommendations developed by us are based upon our professional judgment.  We cannot guarantee the results of any of our recommendations.  

2.     Asset Management Fee Schedule

Our minimum account opening balance is $500,000 which may be negotiable based upon certain circumstances.  The fee charged is based upon the amount of money you invest.   Multiple accounts of immediately-related family members, at the same mailing address, will be considered one consolidated account for billing purposes.  The quarterly fee will be charged for the total of all of the accounts comprising the consolidated account.  The total fee will be billed to one selected Client account unless arranged otherwise between us.  Fees are charged quarterly, in advance.  Payments are due and will be assessed on the last day of each quarter, based on the ending balance of the account under management for the preceding quarter and will be calculated as follows:

PercentagePortfolio Size (AUM)
1.00%$0 – $1,000,000
0.80%$1,000,001 – $3,000,000
0.60%$3,000,001 – $5,000,000
0.45%$5,000,001+

The fees shown above are annual fees and may be negotiable based upon certain circumstances. You will be billed ¼ of this amount on a quarterly basis. There is a minimum quarterly fee of $1250.  No increase in the annual fee shall be effective without prior written notification to you.  We believe our advisory fee is reasonable considering the fees charged by other investment advisers offering similar services/programs.

In certain circumstances, advisory fees and account minimums may be negotiable based upon prior relationships as well as related account holdings.  A flat fee may also be negotiated as long as it does not exceed the fee schedule above.  If a flat fee is negotiated, that fee will be listed in the Asset Management Fee Agreement and Disclosure Statement.  Our fees will not be based upon a share of capital gains or capital appreciation of the funds or any portion of your funds.

Certain strategies offered by us involve investment in mutual funds.  Load and no load mutual funds may pay annual distribution charges, sometimes referred to as “12(b)(1) fees”.  These 12(b)(1) fees come from fund assets, and thus indirectly from clients’ assets.  We do not receive any compensation from these fees. 

Your account at the custodian may also be charged for certain additional assets managed for you by us but not held by the custodian (i.e. mutual funds, 401(k)s). 

The fees we charge can be deducted directly from your account at the custodian.  We will instruct the custodian to deduct the fees from your account at the end of the quarter.  This fee will show up as a deduction on your following quarterly account statement from the custodian.

If you do not want us to charge your account for the fee, you may pay the fee directly to us.  We will send you an invoice detailing the fee calculation.  Fees are due in full 15 days after receipt of the invoice.

Either party may terminate the relationship with a thirty (30) day written notice.  Upon termination of any account, any prepaid fees that are in excess of the management services performed will be promptly refunded to you.  Any fees that are due, but have not been paid, will be billed to you and are due immediately.

3.     Other Fees

We can provide research and advice concerning any legal and legitimate investment for which public information is readily available.  We will charge an hourly fee of $250, which may be negotiable depending upon the nature and complexity of the client’s circumstances.  We can also provide an-in depth analysis of your financial situation or other defined projects as requested on an hourly fee basis.

Item 6 – Performance Based Fee and Side by Side Management


We do not charge any performance-based fees.  These are fees based on a share of capital gains on or capital appreciation of the assets of a client.

Item 7 – Types of Client(s)


We provide portfolio management, consulting, and financial planning services to high net worth individuals, trusts, and foundations.

Our minimum account opening balance for portfolio management is $500,000 which may be negotiable based upon certain circumstances. 

Item 8 – Methods of Analysis, Investment Strategies and Risk of Loss


We use Fundamental Analysis as part of our overall investment management discipline; the implementation of these analyses as part of our investment advisory services to you may include any, all or a combination of the following:

1.     Fundamental Analysis

Fundamental analysis is a technique that attempts to determine a security’s value by focusing on the underlying factors that affect a company’s actual business and its future prospects.  Fundamental analysis is about using real data to evaluate a security’s value.  It refers to the analysis of the economic well-being of a financial entity as opposed to only its price movements.

The end goal of performing fundamental analysis is to produce a value that we can compare with the security’s current price, with the aim of figuring out what sort of position to take with that security (underpriced = buy, overpriced = sell or short).

In order to perform this fundamental analysis, we use many resources, such as: 

  • Morningstar
  • Financial newspapers and magazines (e.g. Wall Street Journal, Forbes, etc.)
  • Annual reports, prospectuses, filings with the Securities and Exchange Commission
  • Company press releases and websites

The investment strategies we use to implement any investment advice given to you include, but are not limited to:  

  • Long term purchases -securities held at least a year
  • Short term purchases – securities sold within a year

2.     Risks

We cannot guarantee our analysis methods will yield a return.  In fact, a loss of principal is always a risk.  Investing in securities involves a risk of loss that you should be prepared to handle.  You need to understand that investment decisions made for your account by us are subject to various market, currency, economic, political and business risks.  The investment decisions we make for you will not always be profitable nor can we guarantee any level of performance.  

A list of all risks associated with the strategies, products and methodology we offer are listed below:

  1. Alternative Investment Risk

Investing in alternative investments is speculative, not suitable for all clients, and intended for experienced and sophisticated investors who are willing to bear the high economic risks of the investment, which can include:

  • Loss of all or a substantial portion of the investment due to leveraging, short-selling or other speculative investment practices
  • Lack of liquidity in that there may be no secondary market for the fund and none expected to develop
  • Volatility of returns
  • Absence of information regarding valuations and pricing
  • Delays in tax reporting
  • Less regulation and higher fees than mutual funds.
  • Bond Fund Risk

Bond funds generally have higher risks than money market funds, largely because they typically pursue strategies aimed at producing higher yields of the risks associated with bond funds include:

  • Call Risk – The possibility that falling interest rates will cause a bond issuer to redeem—or call—its high-yielding bond before the bond’s maturity date.
  • Credit Risk — the possibility that companies or other issuers whose bonds are owned by the fund may fail to pay their debts (including the debt owed to holders of their bonds).  Credit risk is less of a factor for bond funds that invest in insured bonds or U.S. Treasury bonds.  By contrast, those that invest in the bonds of companies with poor credit ratings generally will be subject to higher risk.
  • Interest Rate Risk — the risk that the market value of the bonds will go down when interest rates go up.  Because of this, you can lose money in any bond fund, including those that invest only in insured bonds or Treasury bonds.
  • Prepayment Risk — the chance that a bond will be paid off early.  For example, if interest rates fall, a bond issuer may decide to pay off (or “retire”) its debt and issue new bonds that pay a lower rate.  When this happens, the fund may not be able to reinvest the proceeds in an investment with as high a return or yield.
  • Fundamental Analysis Risk

Fundamental analysis, when used in isolation, has a number of risks:

  • There are an infinite number of factors that can affect the earnings of a company, and its stock price, over time.  These can include economic, political and social factors, in addition to the various company statistics.
  • The data used may be out of date.
  • It is difficult to give appropriate weightings to the factors.
  • It assumes that the analyst is competent.
  • It ignores the influence of random events such as oil spills, product defects being exposed, and acts of God and so on.
  • Mutual Funds Risk

The following is a list of some general risks associated with investing in mutual funds.

  • Country Risk – The possibility that political events (a war, national elections), financial problems (rising inflation, government default), or natural disasters (an earthquake, a poor harvest) will weaken a country’s economy and cause investments in that country to decline.
  • Currency Risk -The possibility that returns could be reduced for Americans investing in foreign securities because of a rise in the value of the U.S. dollar against foreign currencies.  Also called exchange-rate risk.
  • Income Risk – The possibility that a fixed-income fund’s dividends will decline as a result of falling overall interest rates.
  • Industry Risk – The possibility that a group of stocks in a single industry will decline in price due to developments in that industry.
  • Inflation Risk – The possibility that increases in the cost of living will reduce or eliminate a fund’s real inflation-adjusted returns.
  • Manager Risk -The possibility that an actively managed mutual fund’s investment adviser will fail to execute the fund’s investment strategy effectively resulting in the failure of stated objectives.
  • Market Risk -The possibility that stock fund or bond fund prices overall will decline over short or even extended periods.  Stock and bond markets tend to move in cycles, with periods when prices rise and other periods when prices fall.
  • Principal Risk -The possibility that an investment will go down in value, or “lose money,” from the original or invested amount.
  • Overall Risks
  • Clients need to remember that past performance is no guarantee of future results.  All funds carry some level of risk.  You may lose some or all of the money you invest, including your principal, because the securities held by a fund goes up and down in value.  Dividend or interest payments may also fluctuate, or stop completely, as market conditions change.
  • Before you invest, be sure to read a fund’s prospectus and shareholder reports to learn about its investment strategy and the potential risks.  Funds with higher rates of return may take risks that are beyond your comfort level and are inconsistent with your financial goals.
  • While past performance does not necessarily predict future returns, it can tell you how volatile (or stable) a fund has been over a period of time.  Generally, the more volatile a fund, the higher the investment risk.  If you’ll need your money to meet a financial goal in the near-term, you probably can’t afford the risk of investing in a fund with a volatile history because you will not have enough time to ride out any declines in the stock market.
  • Stock Fund Risk

Overall “market risk” poses the greatest potential danger for investors in stocks funds.  Stock prices can fluctuate for a broad range of reasons, such as the overall strength of the economy or demand for particular products or services.

Item 9 – Disciplinary Information


Registered Investment Advisers are required to disclose all material facts regarding any legal or disciplinary events that would be material to your evaluation of us or the integrity of our management.  We do not have any information to disclose concerning Resonance Financial or any of our investment advisors.  We adhere to high ethical standards for all advisors and associates.  We strive to do what is in your best interests.

Item 10 – Other Financial Industry Activities and Affiliations


Jason Self does not participate in other business activities or have any outside affiliations at this time.

Item 11 – Code of Ethics, Participation or Interest in Client Accounts and Personal Trading


1.     General Information 

We have adopted a Code of Ethics for all supervised persons of the firm describing its high standards of business conduct, and fiduciary duty to you, our client.  The Code of Ethics includes provisions relating to the confidentiality of client information, a prohibition on insider trading, a prohibition of rumor mongering, restrictions on the acceptance of significant gifts, the reporting of certain gifts and business entertainment items, and personal securities trading procedures.  All of our supervised persons must acknowledge the terms of the Code of Ethics annually, or as amended.

2.     Participation or Interest in Client Accounts

Our Compliance policies and procedures prohibit anyone associated with Resonance Financial from having an interest in a client account or participating in the profits of a client’s account without the approval of the CCO.

We may recommend securities to you that we have purchased for our own accounts.  We may trade securities in our account that we have recommended to you as long as we place our orders after your orders.  This policy is meant to prevent us from benefiting as a result of transactions placed on behalf of advisory accounts.

The following acts are prohibited:

  • Employing any device, scheme or artifice to defraud
  • Making any untrue statement of a material fact
  • Omitting to state a material fact necessary in order to make a statement, in light of the circumstances under which it is made, not misleading
  • Engaging in any fraudulent or deceitful act, practice or course of business
  • Engaging in any manipulative practices

You may request a copy of the firm’s Code of Ethics by contacting Jason Self.

3.     Personal Trading

We may recommend securities to you that we will purchase for our own accounts.  We may trade securities in our account that we have recommended to you as long as we place our orders after your orders.  This policy is meant to prevent us from benefiting as a result of transactions placed on behalf of advisory accounts. 

We have established the following restrictions in order to ensure our fiduciary responsibilities to you are met:

However, some securities trade in sufficiently broad markets to permit transactions by clients to be completed without an appreciable impact on the markets of the securities.  Under certain circumstances, exceptions may be made to the policies stated above.  Records of these trades, including the reasons for the exceptions, will be maintained with our records as required.

Certain affiliated accounts may trade in the same securities with your accounts on an aggregated basis when consistent with our obligation of best execution.  When trades are aggregated, all parties will share the costs in proportion to their investment.  We will retain records of the trade Order (specifying each participating account) and its allocation.  Completed Orders will be allocated as specified in the initial trade order.  Partially filled Orders will be allocated on a pro rata basis.  Any exceptions will be explained on the Order.

4.     Privacy Statement

We are committed to safeguarding your confidential information and hold all personal information provided to us in the strictest confidence.  These records include all personal information that we collect from you or receive from other firms in connection with any of the financial services they provide.  We also require other firms with whom we deal with to restrict the use of your information.  Our Privacy Policy is available upon request.

5.     Conflicts of Interest

Jason Self may employ the same strategy for his personal investment account as he does for his clients.  However, he does not place his orders in a way to benefit from the purchase or sale of a security.

We act in a fiduciary capacity.  If a conflict of interest arises between us and you, we shall make every effort to resolve the conflict in your favor.  Conflicts of interest may also arise in the allocation of investment opportunities among the accounts that we advise.  We will seek to allocate investment opportunities according to what we believe is appropriate for each account.  We strive to do what is equitable and in the best interests of all the accounts we advise.

Item 12 – Brokerage Practices


1.     Soft Dollars

Soft dollar benefits may be proportionally allocated to any accounts that may generate different amounts of the soft dollar benefits.

Schwab Advisor Services may provide us with certain brokerage and research products and services that qualify as “brokerage or research services” under Section 28(e) of the Securities Exchange Act of 1934 (“Exchange Act”).  These research products and/or services will assist the Advisor in its investment decision making process.  Such research generally will be used to service all of the Advisor’s clients, but brokerage commissions paid by the client may be used to pay for research that is not used in managing the client’s account.  The account may pay to a broker-dealer a commission greater than another qualified broker-dealer might charge to effect the same transaction where the Advisor determines in good faith that the commission is reasonable in relation to the value of the brokerage and research services received.

Because soft dollar benefits could be considered to provide a benefit to the adviser that might cause the client to pay more than the lowest available commission without receiving the most benefit, they are considered a conflict of interest in recommending or directing custodial services.  Resonance Financial mitigates these conflicts of interest through strong oversight of soft-dollar arrangements by the Chief Compliance Officer, in order to assure the soft dollar benefits serve the best interests of the client.

There may other benefits from recommending Schwab Advisor Services such as software and other technology that (i) provide access to client account data (such as trade confirmations and account statements); (ii) facilitate trade execution and allocate aggregated trade orders for multiple client accounts; (iii) provide research, pricing and other market data; (iv) facilitate payment of fees from its clients’ accounts; and (v) assist with back-office functions, recordkeeping and client reporting.

Other services may include, but are not limited to, performance reporting, financial planning, contact management systems, third party research, publications, access to educational conferences, roundtables and webinars, practice management resources, access to consultants and other third party service providers who provide a wide array of business related services and technology with whom Resonance Financial may contract directly.  Resonance Financial may receive seminar expense reimbursements from product sponsors which may be based on the sales of products to their clients.  

2.     Best Execution

We have an obligation to seek best execution for you.  In seeking best execution, the determinative factor is not the lowest possible commission cost but whether the transaction represents the best qualitative execution, taking into consideration the full range of a broker-dealer’s services, including the value of research provided, execution capability, commission rates, reputation and responsiveness.  Therefore, we will seek competitive commission rates, but we may not obtain the lowest possible commission rates for account transactions.

3.     Brokerage for Client Referrals

We do not receive any compensation or incentive for referring you to broker-dealers for brokerage trades.  

4.     Directed Brokerage

Not all advisory firms require you to direct brokerage to a specific broker-dealer or custodian.  We have an obligation to seek best execution for you.  In seeking best execution, the determinative factor is not the lowest possible commission cost but whether the transaction represents the best qualitative execution, taking into consideration the full range of a broker-dealer’s services, including the value of research provided, execution capability, commission rates, and responsiveness.  Therefore, we will seek competitive commission rates, but we may not obtain the lowest possible commission rates for account transactions.

By directing brokerage to Schwab Advisor Services, you may pay higher fees or transaction costs than those obtainable by other broker-dealers or custodians.  In most cases, we believe you are paying a discounted and reasonable rate. 

If you elect to select your own broker-dealer or custodian and direct us to use them, you may pay higher or lower fees than what is available through our relationships.  Generally, we will not negotiate lower rates below the rates established by the executing broker-dealer or custodian for this type of directed brokerage account, unless we believe that such rate is unfair or unreasonable for the size and type of transaction. 

5.     Trading

Transactions for each client account generally will be effected independently, unless we decide to purchase or sell the same securities for several clients at approximately the same time.  We may (but are not obligated to) combine or “batch” such Orders to obtain best execution, to negotiate more favorable commission rates or to allocate equitably among our clients’ differences in prices and commission or other transaction costs.  Under this procedure, transactions will be price-averaged and allocated among our clients in proportion to the purchase and sale orders placed for each client account on any given day.

Item 13 – Review of Accounts


1.     Reviews

Reviews are conducted at least monthly or as agreed to by us.  Reviews will be conducted by our Chief Compliance Officer and Managing Member Jason Self.  You may request more frequent reviews and may set thresholds for triggering events that would cause a review to take place.  Generally, we will monitor for changes and shifts in the economy, changes to the management and structure of a mutual fund or company in which client assets are invested, and market shifts and corrections.  

2.     Reports

You will be provided with account statements reflecting the transactions occurring in the account on at least a quarterly basis.  These statements will be written or electronic depending upon what you selected when you opened the account.  You will be provided with paper or electronic confirmations for each securities transaction executed in the account.  You are obligated to notify us of any discrepancies in the account(s) or any concerns you have about the account(s).

Item 14 – Client Referrals and Other Compensation


We do not receive any compensation for referring clients to another advisor nor do we pay any compensation to another advisor if they refer clients to us.

Item 15 – Custody


We do not have physical custody of any accounts or assets.  However, we may be deemed to have custody of your account(s) if we have the ability to deduct your quarterly fees from the custodian.  We use Schwab Advisor Services as the custodian for all your accounts.  You should receive at least quarterly statements from the custodian that holds and maintains your investment assets.  We urge you to carefully review such statements and compare this official custodial record to the account statements that we may provide to you.  Our statements may vary from custodial statements based on accounting procedures, reporting dates, or valuation methodologies of certain securities.  If you notice any discrepancies, please contact Jason Self.

We do not debit the client fees directly from your advisory account.  We send information to your custodian to debit your fees and to pay them to us. You authorized the custodian to pay us directly at the onset of the relationship. 

Item 16 – Investment Discretion


We usually receive discretionary authority from you at the beginning of an advisory relationship to select the identity and amount of securities to be bought or sold.  This information is described in the Advisory Agreement you sign with us.  In all cases, however, this discretion is exercised in a manner consistent with your stated investment objectives for your account.

When selecting securities and determining amounts, we observe the investment policies, limitations and restrictions you have set.  For registered investment companies, our authority to trade securities may also be limited by certain federal securities and tax laws that require diversification of investments and favor the holding of investments once made.

We require that any investment guidelines and/or restrictions be provided to us in writing.

Item 17 – Voting Client Securities


As a matter of firm policy and practice, we do not have any authority to and do not vote proxies on behalf of advisory clients.  You retain the responsibility for receiving and voting proxies for any and all securities maintained in your portfolios.  We may provide advice to you regarding your voting of proxies.  We are authorized to instruct the custodian to forward you copies of all proxies and shareholder communications relating to your account assets.

Item 18 – Financial Information


We are required to provide you with certain financial information or disclosures about our financial condition.  We have no financial commitment that would impair our ability to meet any contractual and fiduciary commitments to you, our client.  We have not been the subject of any bankruptcy proceedings. In no event shall we charge advisory fees that are both in excess of five hundred dollars and more than six months in advance of advisory services rendered.

Due to the effects of COVID as it relates to substantial change in the ability to meet in-person with clients and prospective clients and due to the highly uncertain market and financial conditions as a result of this unique challenge, Resonance Financial elected to participate in the government Paycheck Protection Program (PPP) as part of the CARES act.  We received $20,832 in 2021. The full amount has been forgiven as it was utilized for salary payments per terms of the program.

Item 19 – Requirements for State Registered Advisers


Part A

Please refer to the Part 2B attached.

Part B

Please refer to the Part 2B attached.

Part C

Please refer to the Part 2B attached.

Part D

Please refer to the Part 2B attached.

Part E

Please refer to the Part 2B attached.

There is one principal of Resonance Financial, Jason Self.  He is the CCO and Managing Member and was born in 1973.  His information is as follows:

ADV Part 2B Brochure Supplement – Jason Self

Item 1 – Cover Page

Jason Self

CRD # 6321372

Resonance Financial, LLC

2809 Welton Cliff Dr.

Cedar Park, TX 78613

www.rezfin.com

(512) 456-7554

This Brochure supplement provides information about Jason Self and supplements the Resonance Financial, LLC (“Resonance Financial”) Brochure.  You should have received a copy of that Brochure.  Please contact Jason Self if you did not receive the Brochure or if you have any questions about the contents of this supplement.  Additional information about Resonance Financial and Jason Self is available on the SEC’s website at www.adviserinfo.sec.gov.

Item 2 – Educational Background and Business Experience

Full Legal Name:  Jason W. Self                                                   Year of Birth:  1973

Education

BBA, Finance                                                                                      2001

Texas State University, San Marcos, Texas

Designations

Chartered Financial Analyst (CFA®) Charterholder              2008

CFA Institute

Minimum Designation Requirements

Chartered Financial Analyst (CFA®)

The Chartered Financial Analyst (CFA®) certification is a globally recognized, graduate-level investment credential, recognized for its foundation in investment analysis and portfolio management skills, and emphasizes the highest ethical and professional standards.  To attain the right to use the CFA® marks, an individual must satisfactorily fulfill the following requirements:

Prerequisites/Experience: Complete either an undergraduate degree and four years of professional experience involving investment decision-making, or four years of qualified work experience (full time, but not necessarily investment related).

Educational Requirements: Complete a self-study program (250 hours of study for each of the three levels).

Examination Type: Pass the comprehensive CFA® Certification Examination.  The examination consists of three comprehensive exams which are six hours in length each. 

Ethics: Agree to be bound by CFA Institute’s Standards of Professional Conduct, a set of documents outlining the ethical and practice standards for CFA® professionals.

CFA® professionals who fail to comply with the above standards and requirements may be subject to CFA Institute’s enforcement process, which could result in suspension or permanent revocation of their CFA® certification.

Business History

April 2014 – Present                         CCO and Managing Member at Resonance Financial, LLC

April 2007 – April 2014                     Senior Portfolio Manager at TIAA-CREF Trust Company

March 2001 – April 2007                 Portfolio Manager/Semiconductor Equity Research Analyst at Wells            Fargo

August 1995 – May 2001                 Associate Engineer at Motorola Semiconductor

Item 3 – Disciplinary History

Neither Resonance Financial nor Jason Self has any disciplinary history to disclose.

Item 4 – Other Business Activities

As noted in item 10 “Other Financial Industry Activities and Affiliations” above, Jason Self has no outside business activities and/or affiliations to disclose.

Item 5 – Additional Compensation

Jason Self does not receive any other compensation.

Item 6 – Supervision

Jason Self is the Chief Compliance Officer and performs all supervisory duties for his firm.

Item 7 – Requirements for State-Registered Advisers

Jason Self has no reportable events to disclose here.

Performance Fees

We do not charge a performance-based fee (fees based on a share of capital gains on, or capital appreciation of, the assets of a client) for our normal asset management accounts. 

Other Relationships

Neither the firm nor Jason Self has any relationship with any issuer of securities.