One Seven is registered with the Securities and Exchange Commission as an investment adviser and, as such, we provide advisory services rather than brokerage services. Brokerage and investment advisory services and fees differ and it is important for you, our client, to understand the differences. Additionally, 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. This document is a summary of the services and fees we offer to "retail" investors, which are natural persons who seek or receive services primarily for personal, family, or household purposes.
What investment services and advice can you provide me?
We offer the following investment advisory services to retail investors: Financial Planning; Investment Management; Pension Consulting; Selection of Other Advisers; Educational Seminars; Asset Allocation; Advisory Consulting; Sponsor and Manager of Wrap Fee Programs; Detailed information regarding our services, fees and other disclosures can be found in our Form ADV Part 2A Items 4, 7, 13 and 16 and Form ADV Part 2 Appendix 1 Brochures Items 4 and 5 by clicking this link.
Account Monitoring: If you open an investment account with our firm, as part of our standard service we monitor your investments on a continues basis and conduct account reviews with clients (subject to client availability), at least annually.
Investment Authority: We manage investment accounts on a discretionary basis where we will decide which investments to buy or sell for you. We have discretion to select, retain or replace third-party managers for you. You may limit our discretionary authority (for example, limiting the types of securities that can be purchased or sold) by providing our firm with your restrictions in writing. We also offer non-discretionary investment management services where we will provide advice, but you will ultimately decide which investments to buy and sell. You have an unrestricted right to decline to implement any advice provided by our firm on a non-discretionary basis.
Investment Offerings: We offer advice on the following types of investments or products: equity securities, commercial paper, certificates of deposit, municipal securities, variable annuities, mutual funds, US government securities, options contracts, money market funds, real estate, REITs, structured notes, ETFs, and interests in partnerships investing.
Account Minimums: We do not typically require a minimum dollar amount to open and maintain an advisory account.
What fees will I pay? The following summarizes the principal fees and costs associated with engaging our firm for investment advisory services. For detailed information, refer to our Form ADV Part 2A and Form ADV Part 2 Appendix 1 Brochures by clicking this link.
- Asset Based Fees - Payable quarterly in advance. Since the fees we receive are asset-based (i.e. based on the value of your account), we have an incentive to increase your account value which creates a conflict especially for those accounts holding illiquid or hard-to-value assets
- Commissions - Payable to broker dealers
- Wrap Program Fees - Payable quarterly in advance. Asset-based fees associated with a wrap fee program include most transaction costs and fees to a broker-dealer that has custody of the assets; therefore, the asset based fee is higher than a typical asset-based advisory fee. Since our firm pays the transaction costs associated with securities transactions in your account, we have an incentive to minimize the trading in your account
- Financial and Pension/Retirement Plan Fees - The receipt of Annual Financial Planning and/or Retirement Planning Fees paid based on; hourly rates, annual retainer paid monthly or quarterly in advance, or as negotiated.
- Other Advisory Fees - In addition to our fees, other fees may include: platform fees to support; unified managed accounts ("UMAs"), turnkey asset management program ("TAMP"), and advisory fees charged by third party money managers, which are separate from our fees.
Examples of the most common fees and costs applicable to our clients are: Custodian fees, and Account maintenance fees; Fees related to mutual funds and exchange-traded funds; Transaction charges when purchasing or selling securities; and Platform Fees and other product-level fees associated with your investments 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. 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:
- Private Fund Affiliation: We serve as the general partner or are affiliated with private funds in which you may be solicited to invest. Our Company, and other knowledgeable employees may acquire, directly or indirectly, investment interests in our funds or have other financial interests (e.g. General Partner, Officers, Board Members) in the funds. This presents a conflict of interest because we are compensated by the private funds.
- Third-Party Payments: Persons providing advice on behalf of our firm are registered representatives with broker dealers and/or licensed as independent insurance agents. These persons receive compensation in connection with the purchase and sale of securities or other products. Compensation earned by these persons is separate and in addition to our advisory fees. This practice presents a conflict of interest because they have an incentive to recommend products based on the compensation received rather than solely based on your needs.
*Refer to our Form ADV Part 2A and Form ADV Part 2 Appendix 1 Brochures by clicking this link to help you understand what conflicts exist.
How do your financial professionals make money?
Our Company and the financial professional servicing your account(s) are compensated in the following ways: Salary and Bonus; Financial professionals' compensation is based on the amount of client assets they service. Compensation paid to our financial professionals involves a conflict of interest because they have a financial incentive to refer clients to our firm.
Do you or your financial professionals have legal or disciplinary history?
Yes, our firm or our financial professionals currently have legal or disciplinary history to disclose. These events are disclosed in either our Form ADV or the specific individual's Form U4. These documents can be found by going to Investor.gov/CRS
*You can find additional information about your investment advisory services and request a copy of the relationship summary at 216-865-1700 or click the link provided