Fiduciary
A fiduciary must hold the interest of the client first at all times. As a Registered Investment Advisor, The Absolute Return LLC is responsible for upholding fiduciary standards, including investing client assets consistent with the client’s financial status, goals and tolerance for risk. In addition, SEC regulations require a Registered Investment Advisor to comply with various laws regarding disclosure, record-keeping, custody of client accounts, operating procedures and conduct. These regulations, and your investment advisor’s compliance with them, help to protect your assets and instill the confidence and trust necessary in the Client-Advisor relationship.
Disclosures and Contracts
As a Registered Investment Advisor, The Absolute Return LLC is required by law to disclose to its clients and regulators, details of its company including its services, fees and the background of its employees, and to revise those filings when material changes occur. This is provided in the ADV Part II form which is used as our “brochure” distributed to all clients. In addition, a contract is maintained with each client, clearly stating services, responsibilities of the Investment Advisor, fees, and discretionary authority to enact transactions in the client’s accounts.
Books and records
Registered Investment Advisors are subject to surprise audits by State and Federal regulators. To comply with regulations, The Absolute Return LLC must maintain current records on-site and accessible for an audit.
Custody of Client Assets
“Custody” means holding directly or indirectly, client funds or securities, or having any authority to obtain possession of them or having the ability to appropriate them. The Absolute Return does not retain custody of its clients assets. Client assets are held by an independent Broker/Dealer. The Absolute Return will retain discretionary authority to enact transactions in the client’s account based on the Investment Profile you completed.
Operating Practices
The Absolute Return enforces and regularly updates an Operations Procedures Manual which guides how the firm implements its fiduciary practices, complies with federal regulations, and invests client assets. Operating practices also include a Code of Conduct which helps foster transparency within the company and between the Advisor and Client, as well as handle any potential conflicts of interests with clients or third party service providers.
The relationship between the Absolute Return LLC and its clients is based on a foundation of trust and transparency. If you would like more information about our practices, or if you wish to discuss any of these items with an Investment Advisor Representative, please complete the contact form.
