WHITEHALL-PARKER SECURITIES, INC.
CLIENT RELATIONSHIP SUMMARY
JUNE 30, 2020
Whitehall-Parker Securities, Inc.(WPS) is registered with the Securities and Exchange Commission(SEC) as a broker-dealer and with the state of California as an investment adviser, and is a member of the Financial Industry Regulatory Authority(FINRA) and the Securities Investor Protection Corporation(SIPC).
Brokerage and investment advisory services and fees differ, and it is important for you to understand these differences. 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.
WHAT INVESTMENT SERVICES AND ADVICE CAN YOU PROVIDE ME?
We offer both brokerage and investment advisory services to retail investors. Our brokerage services include buying and selling securities. These services will be performed after gathering information about you and making a recommendation to you. In some cases we will accept from you with your approval some limited discretion to determine when and at what price we purchase or sell securities for you. And in some cases we will accept from you with your approval discretion to purchase or sell securities for you based on our decision-making. You should not consider investment monitoring of your brokerage account a part of these brokerage services. We may contact you and offer recommendations about your existing holdings, but we will not be performing formal account monitoring. We have no investment or account minimums, other than those minimums required by investment issuers for certain investments. We have no eligibility requirements, other than those stated in the offering documents of certain investments. We have no proprietary products, and we are able to offer for investment a wide variety of investments. You make the ultimate decision regarding the purchase or sale of investments.
Our advisory services include building an investment portfolio for you with a variety of different investments based on your needs and as determined by discussion with you. This activity will typically be performed under a wrap fee in which we charge a comprehensive fee for all investment advice, investment research, and brokerage services. We also offer a hybrid arrangement in which we charge a flat monthly fee and reduced brokerage charges. In some cases we will accept from you with your approval some limited discretion to determine when and at what price we purchase or sell securities for you. And in some cases we will accept from you with your approval discretion to purchase or sell securities for you based on our decision-making. In all advisory arrangements we will endeavor to act in your best interest, and you will have at all times the ability to discontinue anything we do and make any decisions about your account. In these advisory arrangements we will monitor your portfolio quarterly and communicate with you regularly as needed what alterations to the portfolio you should consider. We have no investment or account minimums, other than those minimums required by investment issuers for certain investments. We have no eligibility requirements, other than those stated in the offering documents of certain investments. We have no proprietary products, and we are able to offer for investment a wide variety of investments.
We are happy to discuss with you which arrangement makes the most sense for you. We encourage you to research the Regulation Best Interest disclosures by the SEC on the internet, our website at Whitehall-Parker.com, our Form ADV filed with the Investment Adviser Registration Depository(“IARD”), and our advisory brochure attached to that Form ADV, which we provide before setting up any advisory arrangement and at any time upon request.
We recommend that you participate in a more detailed conversation with your financial professional by asking the following:
- Given my financial situation, should I choose a brokerage service or an investment advisory service? Should I choose both types of services? 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?
In a brokerage account you will typically pay a stated commission on each transaction, which you can negotiate with your financial professional prior to any transaction. Some commissions are fixed and stated in underlying investment disclosure documents(e.g. prospectuses for public offerings and mutual funds, private placement memorandums for private securities offerings, and insurance contracts for variable annuities and other variable insurance policies). You will pay some stated ongoing monthly or quarterly trail commissions on mutual funds and some insurance contracts. In other transactions(e.g. bonds) our firm may transact a purchase or sale of securities on a principal basis in which we buy or sell securities in our account and mark them up(purchases) or down(sales) to you. You can negotiate these markups and markdowns with your financial professional prior to any transactions. In all cases the financial professional will determine appropriate commissions based on your account size, overall activity, the size of a transaction, costs to perform the transaction, and the amount of work performed by the professional over time. We review these fees to ensure their reasonableness, but we encourage you to discuss them in detail with your financial professional. The decisions by financial professionals about the types of investments to recommend and the fees charged create conflicts of interest, of which you should always be aware. You should always consider the fees of any investment before agreeing to invest. Greater amounts of transactions cause you to incur greater investment fees. You should always discuss with your financial professional the need for more or less activity in your account. You may incur other fees to maintain your investment portfolio, including custodian fees(retirement accounts) and various fees from our clearing firm(Pershing, LLC) to handle fund transfers, dividend reinvestments, stopped checks, inactive accounts, and terminations. Your financial professional can always describe these fees in as much detail as you require.
In advisory services accounts you will be charged either a fixed monthly fee(charged at the end of each month) or a negotiated quarterly fee based on your account balance at the end of each quarter. The amount of the fixed monthly fee or the quarterly percentage fee is determined by negotiation between you and your financial professional. In the fixed fee format you may or may not pay for additional identified brokerage commissions and costs, as determined by your negotiated arrangement. In the quarterly fee arrangement you will pay no brokerage fees, but you will pay more fees as your account increases in size. This creates a conflict of interest for a financial professional who earns more by increasing the size of an account. You should discuss with your professional the need to put some or all of your assets in such an account. In both the fixed fee and quarterly percentage fee arrangements you may incur other fees to maintain your investment portfolio, including custodian fees(retirement accounts) and various fees from our clearing firm(Pershing, LLC) to handle fund transfers, dividend reinvestments, stopped checks, inactive accounts, and terminations.
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.
We encourage you to do your own research on the internet about typical fees in this industry. Additional helpful information can be found in the Regulation Best Interest disclosures by the SEC, our firm disclosures on our Form ADV filed with the IARD, and our advisory brochure filed as part of our Form ADV and available at any time upon request.
We also encourage you to discuss these fees with your financial professional. Consider asking the following: 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 PROVIDING RECOMMENDATIONS AS MY BROKER-DEALER OR WHEN ACTING AS MY INVESTMENT ADVISER? HOW ELSE DOES YOUR FIRM MAKE MONEY AND WHAT CONFLICTS OF INTEREST DO YOU HAVE?
When we provide you with a recommendation as your broker-dealer or 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 recommendations and investment advice we provide you. Here are some examples to help you understand what this means.
In brokerage accounts we will earn commissions determined by your financial professional on stock purchases and sales, markups and markdowns determined by your financial professional on bond purchases and sales, fixed commissions(called “loads”) stated in fund prospectuses on mutual fund purchases, fixed commissions stated in insurance contracts on variable annuities or other variable insurance policies, fixed commissions stated in prospectuses on public offerings, fixed commissions stated in private placement memorandums on private offerings, and ongoing trail commissions on mutual funds and some insurance contracts. In some public and private offerings we may earn a stated due diligence fee to reimburse our firm for the resources expended to understand certain securities, to determine that various critical disclosures are accurate and properly made, and to ensure that such securities are appropriate for some of our clients. Some issuers of investment securities contribute to our costs to educate our financial professionals about various investments and in return are allotted time to speak directly with our financial professionals at our regular meetings. We will disclose all of these commissions, due diligence fees, and other payments to you prior to each transaction. Commissions and due diligence fees will vary by type of investment and will generally increase by transaction size. We recommend that you discuss these commissions and due diligence fees with your investment professional prior to agreeing to any transaction and negotiate commissions that are acceptable to you for the brokerage service to be provided. Because these commissions and due diligence fees vary, conflicts of interest exist. We will be compensated differently based on the course of action we recommend to you. You should always be aware of these conflicts when discussing any transaction with your investment professional.
In advisory accounts, we will earn a fixed monthly fee plus brokerage commissions as described above or a quarterly percentage fee only on the account balance at the end of each quarter. Your financial professional will recommend one of these arrangements, but you will always be able to determine the arrangement you prefer. In each case, if your financial professional invests a portion of your funds in public or private offerings, our firm may earn additional due diligence fees. We will disclose these due diligence fees to you prior to any such transaction. Because each of these arrangements will generate different compensation to our firm, a conflict of interest exists. You should understand these conflicts of interest when agreeing to any of these arrangements.
We recommend that you research these arrangements on the internet, refer to our website(Whitehall-Parker.com), review the SEC’s Regulation Best Interest disclosures, review our Form ADV with the IARD, and read our advisory brochure filed with the IARD and available at any time upon request. You should talk with your financial professional about the pros and cons of each arrangement. Ask your financial professional: How might your conflicts of interest affect me, and how will you address them?
HOW DO YOUR FINANCIAL PROFESSIONALS MAKE MONEY?
Your financial professional will be compensated by earning a percentage of any brokerage commissions and/or advisory fees generated by your account. That percentage is either fixed by negotiation between the financial professional and our firm or changes based on an annual schedule of overall commissions and fees earned by that financial professional. Each financial professional will earn more compensation by performing more or larger transactions and/or by providing advisory services to larger account balances. You should be aware of this conflict of interest when interacting with your investment professional. Our firm does not conduct sales contests and does not provide incentives above and beyond the stated commissions on each investment. Our firm encourages all of our financial professionals to recommend to their customers transactions that are in their best interest.
DO YOU OR YOUR FINANCIAL PROFESSIONALS HAVE LEGAL OR DISCIPLINARY HISTORY?
Yes. Please visit investor.gov/CRS for a free and simple search tool to research us and our financial professionals. We encourage you to ask your financial professional: As a financial professional, do you have any disciplinary history? For what type of conduct?
For additional information about our services, please refer to our website(Whitehall-Parker.com), review our Form ADV with the IARD, and read our advisory brochure filed with the IARD and available at any time upon request. If you would like additional, up-to-date information or a copy of this disclosure, please call (415) 421-5935. We encourage you to ask your financial professional:
- Who is my primary contact person?
- Is he or she a representative of an investment adviser or a broker-dealer?
- Who can I talk to, if I have concerns about how this person is treating me?
We value you as a client. Thank you for working with Whitehall-Parker Securities, Inc.