As a registered investment adviser (“RIA”), Alternity Investment Advisors owes a fiduciary duty to act in the best interests of its clients. This duty requires us to provide advice that is objective, transparent, and aligned with your financial goals.
1. Dual Capacity / Insurance Product Recommendations
In the course of providing investment advisory services, Alternity Investment Advisors and its representatives may also recommend certain insurance products, such as life insurance, fixed annuities, or other insurance-related products (“Insurance Products”). In these instances, Alternity Investment Advisors or its representatives may receive commissions or other forms of compensation from insurance carriers when these products are purchased. These commissions may vary significantly from the compensation which we receive as Investment Advisors. For example, insurance products may, in some circumstances, provide one-time commissions anywhere from roughly 2% to 7% of the transaction amount, whereas our investment advisory fees are generally an annual percentage of roughly 1% of assets under management. Even though clients typically do not pay insurance commissions directly, it is important to understand that these products may be structured to include the cost of agent compensation. This may create a conflict of interest, because we have a financial incentive to recommend Insurance Products from which we may earn commissions.
2. Client Choice / No Obligation
You are under no obligation to purchase any Insurance Products through Alternity Investment Advisors or our representatives. Advisory services and Insurance services/products are separate, and Alternity Investment Advisors is not affiliated with any Insurance agency or carrier. You have the right to shop independently and purchase any recommended products from other insurance professionals or carriers.
3. Mitigation of Conflict
To mitigate potential conflicts of interest:
- Recommendations will be based on your financial needs, objectives, and suitability, not on compensation.
- We will ensure that you review this dual capacity disclosure and sign off on it, prior to purchasing any such insurance product.
- You are encouraged to ask questions regarding insurance products, costs, and fees.
4. Acknowledgment of Understanding Intent:
- You have reviewed and read this Dual Capacity / Conflict of Interest Disclosure.
- You understand that certain insurance products recommended may result in commissions or other compensation to our representatives.
- You understand that you may choose to obtain such products from another source if you prefer.
We encourage you to reach out to us and inquire if you have any questions or require any clarification at all.