When we act as your investment adviser, 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 investment advice we provide you. Here are some examples to help you understand what this means.
For training and educational events that we provide to our financial professionals, we receive support from our nonaffiliated strategic partners, including your custodian and the sponsors of the mutual funds and ETFs used as investments for your portfolio, in the form of discounted or fee-waived services and/or non-cash reimbursements to help offset some of the expenses we incur from hosting such events. We have an incentive to recommend the investments of these sponsors for your portfolio even if they might not align with your investment strategy.
As mentioned in “What fees will I pay you?”, the fee you pay us will increase as the amount of your assets under our management grows. Most of the independent representatives acting on our behalf as financial professionals receive a share of the fee you pay to us, which means we and our financial professionals have an incentive to recommend that you open an account and move your assets under our management when the products and services of another financial services provider might be better suited for you. We also have an incentive to recommend and place you in riskier investments that might result in higher returns for you – and higher fees paid to us – but might not align with your investment strategy.
For more information about our conflicts of interest review our Firm Brochure (Items 5, 10, 12, and 14).