Financial Sciences, Inc
As of June 30, 2020
For purposes of Form CRS, the following terms have the meanings ascribed to them below:
A. Affiliate: Any persons directly or indirectly controlling or controlled by you or under common control with you.
B. Dually licensed financial professional: A natural person who is both an associated person of a broker-dealer registered under section 15 of the Exchange Act, as defined in section 3(a)(18) of the Exchange Act, and a supervised person of an investment adviser registered under section 203 of the Advisers Act, as defined in section 202(a)(25) of the Advisers Act.
C. Dual registrant: A firm that is dually registered as a broker-dealer under section 15 of the Exchange Act and an investment adviser under section 203 of the Advisers Act and offers services to retail investors as both a broker-dealer and an investment adviser.
D. Relationship summary: (This Document) A written disclosure statement prepared in accordance with Advisers Act rule 204-5; Exchange Act rule 17a-14; Form CRS.
E. Retail investor: A natural person, or the legal representative of such natural person, who seeks to receive or receives services primarily for personal, family or household purposes.
The purpose of this document is to inform existing customers and new customers of the type of services that our firms offers, the fees and costs that are charged, any conflict of interest that individual members of our team and/or firm may have with regards to the investments, as well as any disciplinary history of our firm and team members.
Founded in 1974 by Dr. Hwachii Lien, Financial Sciences, Inc. (Financial Sciences) is a small discount brokerage firm, specialized in medium-size accounts investing stocks and options that is available to public.
The firm employs the following personnel and they each individually holds the associated licenses. Dr. Hwachii Lien, the President of Financial Sciences, is a registered broker (Series 1 and 63) and General Principal (Series 00) since 1974. Gary Ho is a registered broker (Series 7 and 63), Options Principal (Series 4), General Principal (Series 24), and FinOp principal (Series 28). Yun Chien is a registered broker (Series 7 and 63), General Principal (Series 24), FinOp Principal (series 27), and Options Principal (Series 4). Leslie Lee is a registered broker (series 7 and 63), Options Principal (Series 4), and FinOp Principal (series 27). Kenneth Lee is a registered broker (Series 7 and 63) and FinOp Principal (series 27). Financial Sciences is also a member of FINRA and Securities Investor Protection Corporation (SIPC).
Should additional education materials and tools with regards to investing are required, there are free tools available, such as investor.gov/crs. These tools are to supplement the research materials and provide additional information to investor, rather than to replace existing materials.
Relationships and Services
“What investment services and advice can you provide me?”
Financial Sciences offers brokerage services to retail investors. The firm specializes in options trades and stocks. There is not a minimum account balance required for regular accounts. However, if the client chooses to invest in options, there is a $20,000 minimum account balance required. The firm has capacity to do other type of brokerage services, such as fixed income securities, mutual funds, ETFs and similar, but primarily focus on options and stock trades.
The members of the firm do not promise to monitor the client’s investments or notify major market changes, although if the market volatility warrant an outreach, to the best of ability the team members will inform the clients.
Fees, Costs, Conflicts, and Standard of Conduct
“What fees will I pay?”
Please see attached chart for a summary of fees. Please note that these fees are transaction-based fees. In other words, to occur these fees, a transaction must occur. There are no monthly maintenance fees.
“How do your financial professionals make money?”
Financial Sciences generate revenue purely by commission. The commission charged to client is based on the price and volume of the transactions. Our clearing house, Hilltop Securities Inc., collects the fee from clients and pay Financial Sciences for the net amount. Employees (financial professionals) are majorly compensated by wage, with small percentage of income from commission.
It is true that the more trades and transactions occurs, the more revenue the firm will generate, however, Financial Sciences have measures in place (dual principal sign offs) to prevent excessive and abnormal trade volumes. Additionally, members of Financial Sciences deal specifically in brokerage and not investment advisory. Thus, none of the members will be advising clients to transact more activity. The transactions that occur on client’s accounts are at the request of the clients or the client’s authorized person.
“Do you or your financial professionals have legal or disciplinary history?”
None of the employees of the firm have any legal or disciplinary history. In the 40+ years of operations, there has been no reports of misconduct or impropriety by the firm.
However, please visit Investor.gov/crs or brokercheck.finra.org, a simple search tool, to verify the history and qualifications of our team members or other financial professional you are in business with.
You can find additional information with regards to the brokerage services at our offices located at 21 Milk Street, Suite 2, Boston, MA 02109. Additional information can be found on our website, www.financialsciences.com. If you would like a copy of disclosure summary or any updates, please call our office at (617) 338-5700.
We thank you for doing business with Financial Sciences, Inc.