Investment Advisors/Consultants

Examples of Conflicts of Interest

• Advisor makes referrals based on business relationships, rather than the qualifications of providers.
• Manager gives preferential treatment to certain clients.

Questions Wealth Owners Should Ask to Surface Conflicts

• Do you accept any type of compensation from any sources other than client fees?
• What percentage of your new business do you receive from investment managers that you recommend to clients?
• How many managers are you actively screening and how many managers are your current clients using?
• What percentage of your clients’ money is held with each of these managers?
• Do you offer fund-of-fund structures to your clients and do you charge a management fee for overseeing these funds?
• Do you participate in wrap fee programs? If so, what fee arrangements do you offer to the wrap program manager? How many assets come to you through such arrangements?