• A duty to seek best execution. To the extent that the investment advisor manages the client’s portfolio and has a duty to select broker-dealers for execution and actually facilitate execution of client trades (e.g., with discretionary accounts), the RIA has a duty to seek the best execution for those client transactions.
• A duty to act and to provide advice and monitoring over the course of the relationship. Once an advisor provides advice, he or she has a duty to follow through and subsequently monitor the implementation of that advice (e.g., to monitor a portfolio over which the advisor has discretionary management), although to the extent that the scope of the relationship is limited (e.g., to a one-time financial plan), the scope of monitoring would be limited to the duration of the actual (limited) relationship.
• Duty of loyalty. The duty of loyalty is the obligation of a fiduciary to put clients’ interests first, and not favor its own interests, and this means it must provide full and fair disclosure of all material facts relating to the advisory relationship and take steps to avoid or at least make fair disclosure of any conflicts of interest.
Our Form ADV brochure includes important details about our practices, fees, other costs, conflicts of interests, how those conflicts are addressed, our disciplinary history, experience, credentials, how we choose investments, risks, and who you should contact about any issues that arise, among other things.
Dan’s CRS For Brokerage Relationships:
We are a broker-dealer and provide brokerage accounts and services rather than advisory accounts and services. This means our primary role is facilitating the buying and selling of securities and investment products. We must have a reasonable basis to believe a recommended transaction or investment strategy involving a security or securities is suitable for the customer.
Advisory accounts and services are subject to fiduciary duties. These duties include duty of loyalty (to you), duty of care, duty to provide best interest advice, duty to seek best execution, a duty to act and to provide advice and often, monitoring over the course of the relationship.
We are exempt from these fiduciary duties because any advice given is solely incidental to the conduct of our business as broker or dealer. If you wish to receive advice regarding any of the below, an advisory account is more appropriate:
i. advice about market trends is advice about securities;
ii. advice about the selection and retention of other advisors is advice about securities;