Precipio Wealth Management LLC
Frequently Asked Questions
Account Access Account Performance

A fee-only advisor is in the business of providing advice to clients concerning securities and non-securities matters. Fee-only advisors are different from stockbrokers and fee-based advisors who sell securities and products rather than advising for compensation.

No. We receive no other compensation from any source. We accept nothing of value from any investment management companies and have no soft-dollar arrangements.

Stockbrokers are registered representative employees of broker-dealer firms. Stockbrokers are licensed to sell securities and other products, and they are compensated based upon what they actually sell and the volume of their sales.

Stockbrokers must adhere to a suitability standard, except when working with ERISA plans or Individual Retirement Accounts (IRAs). In those cases, a stockbroker is required to serve as a fiduciary.

Fee-only registered investment adviser firms, such as Precipio Wealth Management, provide advice as part of its standard business practices, and must always adhere to the fiduciary standard when working with clients.

“A fiduciary standard is a professional standard that requires placing the clients’ best interests first, avoidance or mitigation of conflicts of interest, thorough due diligence on products and services, full transparency, and careful monitoring and reporting.“

--Blaine F. Aiken, President, Fiduciary360, LP, Investment News, March 16, 2009

Precipio Wealth Management is registered with and regulated by the Securities & Exchange Commission. However, registration does not imply any SEC approval of its advice or strategies.

Neither Precipio nor any of its principals or employees have ever been disciplined by any regulatory authority.

For years, many institutional investors have held assets separately from both investment advisory and broker-dealer firms. In the wake of the Madoff scandal, increased oversight and better practices are being examined. Kiplinger’s Personal Finance magazine wrote in its March 2009 article, “How to Spot the Next Bernie Madoff,” “Make sure there’s a third party custodian.”

The Bank of New York Mellon’s wholly owned subsidiary, Pershing LLC, serves as custodian. The Bank, founded in 1784, is currently the master custodian of TARP securities for the U. S. Treasury Department. The Bank of New York Mellon presently maintains the highest credit rating of any bank holding company in the United States.

KPMG LLC, the major worldwide accounting firm, is the auditor of both The Bank of New York Mellon and
Pershing LLC.

No. All portfolio assets are held by the third-party Custodian. Checks for deposit are properly made payable to the account and transmitted to the custodian, and checks to you are mailed by the custodian.

Should a financial firm ever prove unable to meet its obligations to you, Pershing provides the standard $500,000 of net equity protection, including $100,000 covering claims for cash awaiting reinvestment, as a Securities Investor Protection Corporation (SIPC) member firm. Additionally, Pershing currently provides supplemental protection for account net equity that exceeds $500,000 on similar terms through Lloyd’s of London. Insurance does not cover market risks or credit risks attributable to security issuers.

Yes. Precipio Wealth Management has contracted with an independent, third-party performance measurement firm that prepares robust, analyses of the progress of your portfolio.

 

Precipio [prĕ-cĭpˊ-ĭ-ō]
Latin for:
To anticipate, instruct, advise, warn

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