Customer Relationship Summary

Customer Relationship Summary, March 1, 2020
 

Introduction. Sovereign Global Advisors, LLC (“SGA”) is registered with the Securities and Exchange Commission as an Investment Advisor and state-registered Broker-dealer. Brokerage and investment advisory services and fees differ, and it is important for you to understand these differences. Free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.


What investment services and advice can you provide me? We offer brokerage and investment advisory services to retail investors, pension and profit sharing plans, trusts, and corporations, including buying and selling securities. SGA offers investment supervisory services and financial planning services. SGA offers discretionary and non-discretionary advisory services. If the client gives SGA investment discretion, SGA is authorized to invest, sell, and buy securities in the client’s account without the client’s consent prior to the transaction. If SGA is given non-discretionary authority, then SGA is authorized to invest, sell and buy in the client’s account only after the client consents. SGA’s investment advisory representatives will manage each account in accordance with the client’s investment guidelines and/or restrictions (if any) that have been provided by the client. There are no minimum investments to open an advisory account, but a minimum fee will be charged that may be above the percentage stated for the advisory fee.


For additional information, please see Form ADV Part 2A brochure (items 4 and 7).


Conversation Starters. Ask your financial professional—

 

  • Given my financial situation, should I choose an investment advisory service or a brokerage service or both types of services? Why or why not?

  • How will you choose investments to recommend to me?

  • What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?

What fees will I pay? Fees for investment advisory services provided by SGA are based on a percentage of assets under management and charged quarterly in advance based on a percentage of the client’s assets under management at the beginning of the calendar quarter. If an asset-based fee is being charged, the more assets there are in a retail investor’s account, the more a retail investor will pay in fees. In that regard, the firm has an incentive to encourage you to increase the level of your invested assets. Financial planning fees will be negotiated before entering into an Advisory Agreement, and may be charged on an hourly or fixed fee basis.


You can also open a brokerage account where you pay a transaction-based fee, generally referred to as a commission, when the broker-dealer buys or sells an investment for you. Features of a typical brokerage account include:

 

  • You may select investments or the broker-dealer may recommend investments for your account, but the ultimate decision for your investment strategy and the purchase and sale of investments will be yours.

  • A broker-dealer must act in your best interest and not place its interests ahead of your interests when the broker-dealer recommends an investment or an investment strategy involving securities. When a broker-dealer provides any service to you, the broker-dealer must treat you fairly and comply with a number of specific obligations. Unless you and the broker-dealer agree otherwise, the broker-dealer is not required to monitor your portfolio or investments on an ongoing basis.

  • With transaction-based fees, the more trades in your account the more fees the broker-dealer charges you. In that regard, the broker-dealer has an incentive to encourage you to trade often.

  • You can receive advice in either type of account, but you may prefer paying:

A transaction based fee from a cost perspective, if you do not trade often, or if you plan to buy and hold investments for longer periods of time.

An asset based fee if you want continuing advice or want someone to make investment decisions for you, even though it may cost more than a transaction based fee.

You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.

 

For additional information, please see form ADV, Part 2A brochure items 4, 5 and 7.

 

Conversation Starter. Ask your financial professional—

  • Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me? 

What are your legal obligations to me when providing recommendations? How else does your firm make money and what conflicts of interest do you have? When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the recomendations we provide to you. Here are some examples to help you understand what this means.

 

The Investment Advisor Representative (IAR) of SGA may act as a representative of the broker-dealer and offer and sell securities or insurance and receive commissions as a result of the securities transaction. The incentive to receive a commission is a conflict of interest, and to address this conflict to ensure our advisor representatives at all times put the interest of clients first we do the following:

 

  • Disclose to clients all material conflicts of interest which include the potential for our firm to earn compensation from advisory clients in addition to advisory fees.

  • Disclose that there is no obligation to purchase recommended investment products from our representatives or affiliates.

 

Conversation Starter. Ask your financial professional—

  • How might your conflicts of interest affect me, and how will you address them?

 

For additional information, please see Form ADV, Part 2A brochure Best Interest Disclosures.

 

How do your financial professionals make money? Our financial professionals make money by charging transaction fees like commissions for each trade or a fee based on the value of the client’s assets under management. Commissions create a conflict because of the incentive to trade more frequently, and a fee-based payment creates a conflict because of the incentive to have the client invest a greater amount of assets. Investment fees are based on the amount of client assets the advisor services and the time and complexity required to meet the client’s needs.

Do you or your financial professionals have legal or disciplinary history? Yes. Visit Investor.gov/CRS for a free and simple search tool to research us and our financial professionals.

 

Conversation Starter. Ask your financial professional—

  • As a financial professional, do you have any disciplinary history? For what type of conduct?

 

For additional information about our services, you can visit our website at sovereignglobaladvisors.com. If you would like additional, up-to-date information or a copy of this disclosure, please call 866-790-9700 or visit our website.

 

Conversation Starter. Ask your financial professional—

  • Who is my primary contact person? Is he or she a representative of an investment adviser or a broker-dealer? Who can I talk to if I have concerns about how this person is treating me?

Contact us: 866.790.9700

Securities and investment advisory services are offered through Sovereign Global Advisors, Registered Investment Advisor and members of FINRA and SIPC

Check the background of this firm on BrokerCheck.com 

RegBI Form CRS