No Action is necessary by you! This is a new template summary mandated by the SEC, mostly designed for new clients, but also mandatory delivery to current. The goal is to help prospective new clients attempt to understand the GIGANTIC variances in services within the Financial Industry. It’s really hard to check all the boxes and make it clear for everyone, but we like what they are doing….
In compliance to new rules established by the Securities and Exchange Commission, Form CRS (Client Relationship Summary) is as follows.
Item 1 : Introduction:
J.K. Financial, Inc. is a Registered Investment Advisor (RIA), who is registered with the Security and Exchange Commission. As an RIA, we charge management fees for our services as opposed to brokerage fees which are generally charged per transaction.
There are free and simple tools available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.
Item 2 : Relationship and Services:
“What investment services and advice can you provide me?”
As an investment advisor with no proprietary products, we provide not only investment management services, with a general $1 million minimum (but not steadfast) which we monitor in house and non-in house assets via our digital vault on a discretionary basis, but also Financial Planning, Estate Planning, Planning, complete Insurance Review, concentrated wealth strategies as well as Trust planning, We have dubbed this our Total Wealth Planning Practice. Please see here for a more detailed and comprehensive list of our service and please see Form ADV II for a more details of our firm.
“Given my financial situation, should I choose an investment advisory service? Why or why not?”
If you wish assistance with your complete financial situation, an investment advisory service may be best for you. If you do not need assistance or prefer making financial decisions on your own and investment advisor relationship is likely not good for you.
“How will you choose investments to recommend to me?”
The firm specializes in total wealth financial planning, and proactively selects individual equities, ETFs, low cost mutual funds, option hedging strategies, and individual bonds for client portfolios, on a fully discretionary basis.
“What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?”
John Kvale has 32 years of experience and is a Chartered Financial Analyst (CFA) as well as Certified Financial Planner CFP certificate holder. Donald Capone is a Chartered Financial Analyst (CFA).
The CFA certification is a very deep and extensive multiple part exam dealing primarily with investments and investment management. The CFP certification is a very deep and extensive multiple part exam dealing with a very broad coverages of personal financial planning.
Please see here item ADV II 2B page 8 for a more descriptive explanation of the certifications.
Item 3: Fees, Cost, and Standard of Conduct:
“What fees will I pay?” “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?”
J.K. Financial, Inc. is a fee only capital management and financial planning firm, and does not accept commissions, soft dollars, or order flow rebates. Fees are determined on a case by case basis but generally range from .50% to 1.75% based on individual need and complexities and are charged through Limited Power of Attorney from client assets. Costs from packaged investments such as Mutual Funds and ETF’s are netting from client accounts by the respective investment company i.e. Vanguard or other like, and generally are not itemized on client statements and are not paid in any way to J.K. Financial, Inc. In addition, please see Brokerage Practices page for additional details. Costs associated with outside qualified custodian i.e. Commissions, wire fees or the like are itemized on client account statements and are not paid in any way to J.K. Financial, Inc. The more assets there are in a retail investor’s advisory account, the more a retail investor will pay in fees, and the firm may therefore have an incentive to encourage the retail investor to increase the assets in his or her account, see conflicts below. Please see item 12 (page 4) of this link for more information. 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.
“What are your legal obligations to me when acting as my investment adviser? 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. We have an incentive to help you make your money grow thereby increasing our fees.
“You should understand and ask us about these conflicts because they can affect the investment advice we provide you. Here are some examples to help you understand what this means.”
“How might your conflicts of interest affect me, and how will you address them?”
While it may seem like a more aggressive investment posture would be more profitable, as a long term conservative firm and philosophy we regularly avoid very aggressive individuals or investors.
“How do your financial professionals make money?”
All professionals are paid on a salary basis, with regular reviews for good service and bonuses.
Item 4 : Disciplinary History:
“Do you or your financial professionals have legal or disciplinary history?”
No we do not. Feel free to visit Investor.gov/CRS for a free and simple search tool to research of our complete firm.
Item 5 : Additional Information:
Please go to our website at www.jkfinancialinc.com for more information on our firm and a copy of this summary as well as call our office at 214-706-4300.
Questions to ask us:
“Who is my primary contact person? John Kvale
“Who can I talk to if I have concerns about how this person is treating me?” Any team member or directly to John Kvale