Conflict of Interest Disclosure
Required by California Code of Regulation
California requires Investment Advisory Firms to disclose to clients and prospective clients the potential conflicts of interest between themselves and their client’s best interest (CCR Section 260.238(k)). A material conflict of interest exists when the firm, its representatives or its employees could reasonably be expected to be impaired in rendering unbiased or objective advice. Conflicts of interest generally include compensation arrangements; other industry activities or affiliations or participation in client transactions.
SMS Financial LLC does not received additional compensation from other sources beyond the advisory fees for financial planning and investment management. The investment advisory fee is quoted as an annual percentage of assets under management and is divided into a quarterly withdrawal based on the assets at the beginning of each quarter. Financial planning fees are either hourly or at a flat rate as quoted in the advisory contract Neither SMS Financial LLC nor its advisory representative participates in client transactions, although they may own the parallel investments.
Financial Planning Conflict of Interest Statement
Required by California Code of Regulation
California also requires Investment Advisory Firms to disclose to prospective clients that potential conflicts of interest exist between themselves and their client’s best interest if they provide financial planning services and receive fees and/or commissions from the sale of securities, insurance, real estate or any other product or services recommended in a financial plan (CCR Section 260.235.2).
In the course of a financial planning engagement, the advisory representatives of SMS Financial LLC will make recommendations for asset management of securities through the services of SMS Financial LLC. SMS Financial LLC will receive fees for such asset management based on a percentage of the assets, generally around 1% and such fees will be fully disclosed prior to engagement of SMS Financial LLC. At no time is the client obligated to act on our recommendations and the client can choose to transact our recommendations through any other party.
We are committed to the highest level of ethical professional duty and we continually strive for integrity, objectivity, competence, fairness and diligence. We will always put the client’s best interest first and above our own interests and act with care and in good faith.
The SMS Financial LLC site has been designed for informational purposes only. We reserve the right to make modifications at any time, without notice. No information contained on the site constitutes investment advice. Your use of this information does not constitute a client relationship. Past performance does not guarantee future results.
The information provided is in no way intended as an offering or a solicitation of a security which may be referenced in the site. It is not intended for distribution to, or use by, any person in any jurisdiction where such use would be contrary to law or regulation, or which would subject SMS Financial LLC to any registration requirement with such jurisdiction. SMS Financial LLC is not offering services in states were we are not properly registered. Please call for the most current information on such registration.
Copyright © 2010
Unless specifically authorized in writing, any and all information on this site may not be reproduced, transmitted, displayed, distributed, published or otherwise used.
At certain places on this SMS Financial LLC Internet site, live links to other Internet addresses can be accessed. Such external Internet addresses contain information created, published, maintained, or otherwise posted by institutions, organizations, or individuals independent of SMS Financial LLC. SMS Financial LLC does not endorse, approve, certify, or control these external Internet addresses and does not guarantee or assume responsibility for the accuracy, completeness, efficacy, timeliness, or correct sequencing of information located at such addresses. Links are being provided for information purposes only.
Use of any information obtained from such addresses is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference therein to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by SMS Financial LLC.