As registered investment ADVISERS, we have a fiduciary responsibility towards our customers versus a broker who is held to a suitability standard.


What does this mean to you?

This simply means that as registered investment advisors we are held to a higher standard. We closely monitor our client risk profile and investment objectives to provide advice and recommendations that are customized to meet each client investment needs.  Our fees are negotiated in advance and we do not get paid for the transactions in your account.*

When we buy or sell a security on your behalf we will not be receiving a commission for the transaction since we have already agreed to handle your interest for a management fee. Any commissions paid to the broker executing the transaction will be entirely theirs not to be shared with us.*

Since we do not get paid for the transaction, but rather for the Assets Under Management and Advice our interest are perfectly aligned.


How is this different from the way my broker handles my account?

Once more it has to do with the way advisors are compensated and the standard by which they are held.  Most brokers have their customer’s interest at heart, yet they are placed in an impossible position by many factors such as their firm’s production quotas, and their own financial reality, to name just a few, Imagine you are investing money and you want a broker’s recommendation.

The broker may have to choose between recommending a fixed income product that pays him or her 1.5% commission and an equity product that pays 5.5% commission.  Some may be tempted to recommend a higher allocation to the product with the higher compensation.  The only legal requirement being that you can bare the financial risk or the “suitability standard”.

In our case since the management fee has been negotiated in advance and we are not being compensated for the commission regardless of the allocation or product used, you can rest assured your interest and ours are the same.  The only way for us to make more money off of your account is to increase its value.