We recently completed a new 2-page regulatory disclosure worksheet known as the Client Relationship Summary (Form CRS). The purpose of Form CRS is to provide investors with “simple, easy-to-understand information about the nature of their relationship with their financial professional.” In particular, the SEC (Securities and Exchange Commission) wants investment advisers to clearly disclose all fees they may charge and any conflicts of interest that may exist. At Keating, we have always tried to be very clear with our relationship. We charge quarterly management fees based on assets under management for a given period. We do not collect any additional fees and no one at the firm is incentivized to sell any product. Importantly, as a Registered Investment Advisor (the firm) and CFA charter holder (Richard, Ursula, and Phil), we have a fiduciary duty to make decisions that are in your best interest. Most investors will be surprised to learn that many people in the financial industry do not fall under this legal (and moral) requirement. This issue is the core of the new SEC requirement. Please be aware that Form CRS is simply a summary of key points from our much larger ADV filing that we make available each year in the spring. There have been no material changes to our ADV since the latest filing submitted on March 23, 2020, but if you would like a copy of our full ADV, please contact our office. A copy of this filing is also available on the SEC’s website, www.adviserinfo.sec.gov and our own website www.keatinginvestment.com.
In other news, we now have a “Client Portal” for any client that is interested. This secure online portal provides a consolidated view of your managed account(s) in one convenient location, even if they are held with different custodians (Charles Schwab, Morgan Stanley, etc.). Along with your holdings, you will also find information on any transactions, your overall allocation, and charts showing historical performance. Importantly, the information in the portal will reflect the figures in our internal accounting software which is balanced daily based on the previous day’s closing prices. Therefore, if you require up-to-the-minute figures, you will still want to directly access your brokerages’ websites. Another important feature of the portal is a document vault that will allow for the secure exchange of electronic documents. Some clients may find this solution less cumbersome than the Sharefile software we have been utilizing. In addition, the portal can store older letters or correspondence in one location for future reference. Finally, the portal is mobile friendly and lists links to our investment strategies. If you are interested in utilizing this new feature, please contact our office at 561-278-7862 or email email@example.com