What Is A Form CRS? An Overview
In June 2019, the SEC adopted requirements (SEC Release 34-86032) for registered investment advisers, broker-dealers, and dual-registrants that do business with retail investors to file Form CRS (customer relationship summary). Form CRS is intended to inform retail investors about:
- The types of client/customer relationships and services the firm offers;
- Fees, costs, conflicts of interest, and required standard of conduct associated with those relationships and services;
- Whether the firm and its financial professionals currently have reportable legal or disciplinary history;
- How to obtain additional information about the firm.
Form CRS applies to registered investment advisers, broker-dealers, and dual registrants that do business with retail investors. See page 189 of SEC Release 34-86032 for the definition specific to Form CRS and more information.
-Overview of Form CRS provided by RegEd. To read the full overview, click here.
Cassaday & Company, Inc.’s Form CRS
Cassaday & Company Inc. (“we”, “us” or “our”) is registered with the U.S. Securities Exchange Commission (“SEC”) as an investment adviser. Investment advisory services and compensation structures differ from that of a registered broker-dealer, and it is important that you understand the differences.
Free and simple tools are available to research firms and financial professionals at www.Investor.gov/CRS. The site also provides educational materials about broker-dealers, investment advisers and investing.
What investment services and advice can you provide me?
We provide investment advisory services, including discretionary investment management and financial planning services to individuals, trusts and estates (our “retail investors”).
When a retail investor engages us to provide investment advisory services we shall monitor, on a continuous basis, the investments in the accounts over which we have authority as part of our investment management service. Furthermore, when engaged on a discretionary basis, we shall have the authority, without prior consultation with you (unless you impose restrictions on our discretionary authority), to buy, sell, trade and allocate the investments within your account(s) consistent with your investment objectives. Our authority over your account(s) shall continue until our engagement is terminated.
We also provide financial planning and consulting services on a separate stand-alone basis. When we provide financial planning services, we rely upon the information provided by the client for our financial analysis and do not verify any such information while providing this service.
We do not limit the scope of our investment advisor services to proprietary products or a limited group or type of investment.
For more detailed information about our Advisory Business and the Types of Clients we generally service, please See Items 4 and 7, respectively in our ADV Part 2A.
- Given my financial situation, should I choose an investment advisory service? 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?
When engaged to provide investment management services, we shall charge a fee calculated as a percentage of your assets under our management (our “AUM Fee”). Our annual AUM fee varies based on the amount of assets managed, Our fee schedule is available at www.cassaday.com. We generally require a minimum family asset level of $500,000 for our services.
We typically deduct our AUM Fee from one or more of your accounts, in arrears, on a quarterly basis. Although your fee percentage goes down as your assets increase in value, the more assets you have in your advisory account, the more you will pay us for our investment management services. Therefore, in addition to seeking to earn returns that will increase the value of managed assets, we also have an incentive to encourage you to increase the assets maintained in accounts we manage.
Although financial planning is included in our advisory fee, we can also offer our financial planning services separately on an hourly rate basis, generally ranging from $145 to $400 per hour.
Other Fees and Costs:
Your investment assets will be held with Pershing LLC. Custodians generally charge brokerage commissions and/or transaction fees for effecting certain securities transactions. In addition, relative to all mutual fund and exchange traded fund purchases, certain charges will be imposed at the fund level (e.g. management fees and other fund expenses). We do not receive any part of these mutual fund fees and no part of transaction fees. In the RIA relationship the only income to the firm is the advisory 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 more detailed information about our fees and costs related to our management of your account, please See Item 5 in our ADV Part 2A.
- 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 acting as my investment adviser?
When we act as your investment adviser, we are fiduciaries and 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. As an example, we exclusively use Pershing LLC to custody your assets, and we may receive support services and/or products from that same custodian, certain of which assist us to better monitor and service your account while a portion may be for the benefit of our firm.
- How might your conflicts of interest affect me, and how will you address them?
Additional Information: For more detailed information about our conflicts of interest, please review our ADV Part 2A.
How do your financial professionals make money?
Our financial professionals are generally compensated based upon a percentage of fees we receive from the clients they service. Certain financial professionals may receive a combination of salary and a percentage of fees from the clients they service. You should discuss your financial professional’s compensation directly with your financial professional.
Do you or your financial professionals have legal or disciplinary history?
No, but we encourage you to visit www.Investor.gov/CRS to research our firm and our financial professionals.
Furthermore, we encourage you to ask your financial professional:
- As a financial professional, do you have any disciplinary history? If so, for what type of conduct?
Additional information about our firm is available on the SEC’s website at www.adviserinfo.sec.gov. You may contact our Chief Compliance Officer, Linda Stewart at any time to request a current copy of your ADV Part 2A or our relationship summary. Ms. Stewart may be reached by phone: 703-506-8200.
- Who is my primary contact person?
- Is he or she a representative of an investment adviser or broker-dealer?
- Who can I talk to if I have concerns about how this person is treating me?
A copy of our Part 2A is available at: https://files.adviserinfo.sec.gov/IAPD/Content/Common/crd_iapd_Brochure.aspx?BRCHR_VRSN_ID=640474
To download a copy of Cassaday & Company, Inc.’s Form CRS, click here.
(last updated June 2020)