Ultimately, to understand the underlying costs of advisory services, we always recommend asking for an itemized fees breakdown and reading the firm's ADV Part 2 Brochure (Item 5, "Fees and Compensation"). Catchphrases, including "fee-only," can be helpful however, Americans often get confused with competitors promoting "fee-based" in response. Unfortunately, there is no single, uniform pricing standard for working with a financial advisor. Regulation Violations - Other Regulatory Agencies Order Entered - Other Regulatory Agencies
#ARQ REVIEW LICENSE#
Checks take place monthly.Īttorney/Accountant Authorization Revocation – SROīusiness License Revocation - Other Regulatory Agenciesįalse Statements or Omissions - Other Regulatory Agencies Our system found no other conflict questions to ask.
#ARQ REVIEW PROFESSIONAL#
In short, any financial professional should disclose all positions they hold (or have sold short) that they will also be recommending to you. For example, front running is when a financial professional buys or sell securities ahead of their client. While this often can be seen as "eating your own cooking," there are several inherent conflicts that can arise.
Which securities does ARQ Wealth Advisors trade for itself that it will also be recommending to me?ĪRQ Wealth Advisors has marked in their disclosures that they trade recommended securities. Side-by-side management can create an incentive for the advisor to favor the larger funds, potentially leading to unequal trading costs and unfavorable trade executions for their retail clients. This typically occurs when firms manage mutual funds or hedge funds alongside smaller retail accounts. This could be detrimental to a client during down markets.ĭoes ARQ Wealth Advisors perform side-by-side management? How does ARQ Wealth Advisors mitigate conflicts that arise from managing accounts with differing fee structures? For instance, research has shown that mutual funds that use incentive fees take on more risk that funds that do not, and tend to double down and increase their risk following a poor performance. While this may seem like an attractive compensation structure to ensure your advisor is making your money work for you, often, the managers of those products are incentivized to take inappropriate risks to beat their performance benchmark.
When performance-based fees are charged, the financial advisor is paid for outperforming a benchmark, typically an index. Some firms receive these fees as payments, which creates an incentive to promote them.ĭoes ARQ Wealth Advisors offer products that have performance-based fees, or does it accept performance-based fees? Will any of my assets be invested in those products? Learn more.ĭoes ARQ Wealth Advisors offer mutual funds that have 12b-1 fees?ġ2b-1 fees increase the total annual cost of owning a mutual fund with no guarantee of higher returns. Checks take place monthly.Īfter checking the regulatory records of ARQ Wealth Advisors, our system has identified the following question(s) to ask. After checking the disciplinary records of ARQ Wealth Advisors, our system found no disciplinary questions to ask.
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