Form CRS—Client Relationship Summary | June 26, 2020
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Sheaff Brock Investment Advisors, LLC, (“SBIA” or “we” or “us” or “firm”) is registered with the U.S. Securities and Exchange Commission (“SEC”) as an investment adviser. Brokerage and investment advisory services and fees differ and it is important for the retail investor (“you” or “client”) to understand the differences. Free and simple tools are available to research firms and financial professionals at https://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 are a registered investment adviser that offers investment advisory services to retail and institutional clients for a fee. Our advisory services include Individual Portfolio Management, Model Portfolio Management, Financial Planning, and Consulting. If you open a discretionary advisory account with our firm, we will communicate with you to understand your current financial situation, investment objectives, tolerance for risk, and investment time horizon. Based on what we learn, we will recommend an investment strategy where we are allowed to buy and sell investments in your account without asking you in advance (“discretion”). We review the assets of your accounts on a continuous basis to ensure they are being managed consistently with the applicable investment strategy. We will offer you advice on a regular basis and contact you at least annually to discuss your portfolio.

We do not restrict our advice to limited types of products or investments. We provide advice with respect to equities, options, fixed income, and cash investments. We have established a separate account minimum of $500,000 for our Individual Portfolio Management and Model Portfolio Management services. This is negotiable at our discretion. Financial Planning and Consulting, such as retirement planning and estate planning, is offered as a standalone service. We do not monitor your investments for the Financial Planning and Consulting service.

Conversation Starters

  • 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?

Additional Information. More detailed information about our investment advisory business, client types, account minimums, and investment strategies are included in Item 4 in our Form ADV, Part 2A (“Brochure”).

What fees will I pay?

You will be charged an ongoing quarterly fee paid in advance based on the value of the investments in your account as of the end of the prior quarter. The more assets there are in your account, the more you will pay in fees, and we, therefore, have an incentive to encourage you to increase the assets in your account. Our maximum investment advisory fee is 1.75%. Our fees vary and are negotiable. Our advisory fees will be automatically deducted from one or more of your advisory accounts. Our financial planning fees are stand-alone fees that are hourly and range from $75 to $500, or you can elect a one-time project fee that ranges between $500 and $20,000.

You may pay custodial and securities broker-dealer execution fees, such as commissions, charged by the custodian and executing broker-dealer. Our asset-based fee is separate and distinct from the custodian and broker-dealer executions fees. Some investments, such as mutual funds, index funds, and exchange-traded funds, charge additional fees, such as the underlying manager’s fee and fund expenses, that will reduce the value of your investments over time.

Conversation Starter

  • 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 by me?

Additional Information. 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 fees and compensation, please refer to Item 5 in our Form ADV, Part 2A, your investment management agreement, and mutual fund prospectuses.

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 interests and not place our own interest ahead of yours. At the same time, the way we make money creates some conflicts with your interest. You should understand and ask us about these conflicts, because they can affect the investment advice we provide to you. Here are some examples to help you understand what this means.

Affiliated Advisors. Innovative Portfolios, LLC; Salzinger Sheaff Brock, LLC; Trust Advisors, LLC; and SBAuer Funds, LLC, are wholly owned or partially owned by our parent company. The recommendation of one of our affiliated advisors or their mutual funds (Dividend Performers, Preferred-Plus, or Auer Growth Fund) may serve the economic interests of our parent company versus your interest. For client’s assets invested in Dividend Performers, Preferred-Plus or Auer Growth Fund, we waive our investment management fee.

Custodian. We may recommend a particular custodian 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.

Financial Planning. Your financial planner has an incentive to recommend investment advisory services that provide us additional revenues sources. You are under no obligation to act on any recommendation made by your financial planner.

Conversation Starter

  • How might your conflicts of interest affect me, and how will you address them?

Additional Information. More detailed information about our conflicts of interest is included in Items 4, 5, 10, 12 and 14 in our Form ADV, Part 2A.

How do your financial professionals make money?

Financial professionals acting in a sales capacity are compensated based on assets they personally attract to our firm, such as your assets; however, client assets are managed by portfolio managers or portfolio consultants as opposed to sale professionals. Financial professionals not acting in a sales capacity are compensated through a combination of salary and bonus. Bonuses are discretionary and reflect the overall success of the firm and the individual. Our financial professionals receive no product sales commissions or other forms of payment from managing a client's assets.

Do you or your financial professionals have legal or disciplinary history?

We have no legal or disciplinary history to report. Free and simple search tools are available to retail investors who visit https://investor.gov/crs to research our firm and financial professionals.

Conversation Starter

  • As a financial professional, do you have any disciplinary history? For what type of conduct?
  • 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?

Additional Information. For additional information about our investment advisory services or a copy of this disclosure please contact Audrey Kurzawa, Chief Compliance Officer, at 866.575.5700. The Form CRS is also posted to our website at sheaffbrock.com.