GUIDED WEALTH PORTFOLIOS PROGRAM. The Program offers clients the ability to participate in a centrally managed, algorithm-based investment program, which is made available to Client through a web-based, interactive account management portal (“Investor Portal”). The Program generates investment recommendations through proprietary, automated, computer algorithms (collectively, the “Algorithm”) of FutureAdvisor, based upon model portfolios constructed by LPL and selected for the Account as described below (such model portfolio selected for the Account, the “Model Portfolio”). Client acknowledges and agrees that communications concerning the Program are intended to occur primarily through electronic means (including but not limited to, through email communications or through the Investor Portal), although IAR will be available to discuss investment strategies, objectives or the Account in general in person or via telephone. IAR can provide Client with information regarding other LPL investment programs if Client would prefer more frequent personal interactions with their IAR. (a) Account Opening As part of the Account opening process (including the questionnaire on the Investor Portal), Client is responsible for providing complete and accurate information regarding, among other things, Client’s age, risk tolerance, and investment horizon (collectively, “Client Profile”). Client acknowledges that LPL, IAR and FutureAdvisor rely on the completeness and accuracy of the Client Profile in order to provide services under the Program, including but not limited to, determination of suitability of the Program for Client and an appropriate investment objective for Client (“Investment Objective”). Client agrees to promptly inform LPL, IAR and FutureAdvisor of any material changes in Client’s Profile through the Investor Portal or by contacting IAR. (b) Model Portfolios Based upon a Client’s risk tolerance as indicated in the Client Profile, Client is assigned an investment allocation track (currently Fixed Income Tilt, Balance Tilt or Equity Tilt), the purpose of which is to slowly rotate Client’s equity allocation to fixed income over time. Upon submitting a completed questionnaire through the Investor Portal, Client will be assigned an Investment Objective and Model Portfolio within the applicable allocation track and based upon factors in the Client Profile, including Client’s risk tolerance and the number of years remaining until the age of retirement as indicated by Client (such time being referred to herein as the “Retirement Age”). The Model Portfolios have been designed and are maintained by LPL or, in the future, a third-party investment strategist (as applicable, the “Portfolio Strategist”) and shall include a list of securities holdings, relative weightings and a list of potential replacement securities for tax harvesting purposes. FutureAdvisor, IAR, and Client cannot change or customize the Model Portfolios. Only one Model Portfolio is permitted per Account. Currently, there are no third party Portfolio Strategists. As Client approaches the Retirement Age, the Algorithm will automatically adjust Client’s asset allocation. Client acknowledges that any change to the Investment Objective directed by Client due to changes in the Client’s Retirement Age and/or risk tolerance will require written approval from Client and IAR before implementation. Failure to approve the change in Investment Objective may result in Client remaining in a Model Portfolio that is no longer aligned with the Client Profile. Client understands that the Investment Objective selected for the Account is an overall objective for the entire Account and may be inconsistent with a particular holding and the Account’s performance at any time and may be inconsistent with other asset allocations suggested to Client by LPL, IAR or FutureAdvisor prior to Client entering into this Agreement. Client understands that achievement of the stated investment objective is a long-term goal for the Account, and asset withdrawals may impair the achievement of client’s investment objectives. Client understands that a Profile that includes a conservative risk tolerance over a long-term investment horizon may result in the selection of an Investment Objective that is riskier than would be selected over a shorter-term investment horizon. As part of the Account opening process, Client has reviewed and hereby accepts the assigned Investment Objective. Client agrees to contact IAR if Client believes the Investment Objective does not appropriately reflect the Client Profile, such as Client’s risk tolerance. (c) Account Management Under the Program, Client authorizes LPL and FutureAdvisor on a discretionary basis to purchase and sell exchange-traded funds (“ETFs”) and open-end mutual funds (“Mutual Funds”) (collectively, “Program Securities”) in accordance with the Model Portfolio and subject to certain restrictions described herein, accept, hold and/or sell transferred-in non-model securities (“Legacy Securities”). In order to be transferred into the Account, Legacy Securities must be Mutual Funds with which LPL has a full or partial selling agreement, ETFs or individual U.S. listed stocks. Securities that are not Program Securities included within the Model Portfolio will not be purchased for the Account, and FutureAdvisor, in its sole discretion, will determine whether to hold or sell Legacy Securities, generally, but not solely, with the goal of optimizing tax impacts for Accounts that are subject to tax. In addition, uninvested cash may be invested in money market funds or the Multi-Bank Insured Cash Account (“ICA”) or Deposit Cash Account (“DCA”), as applicable, as described in Section 22 below. Client acknowledges that all dividends paid by the Program Securities in the Account will be contributed to the cash allocation and ultimately reinvested into the Account based on the Model Portfolio once the tolerance within the cash allocation is surpassed. Clients may not impose any restrictions on liquidating Legacy Securities. Clients should not transfer-in securities if they are not willing to have them liquidated at the sole discretion of the FutureAdvisor. Client also authorizes FutureAdvisor to perform tax harvesting when deemed acceptable by the Algorithm based on the Legacy Securities’ respective tax lot information. If tax lot information is missing for a Legacy Security, the Legacy Security will be retained in the Account while FutureAdvisor and IAR use reasonable efforts to obtain the missing information. If the information cannot be obtained within a reasonable timeframe (generally no longer than 30 days), the Legacy Security will be sold and replaced with a Program Security in the Model Portfolio. In order to permit trading in a tax-efficient manner, Client further expressly grants FutureAdvisor the authority to select specific tax lots when liquidating securities within the Account. Although the Algorithm attempts to achieve tax efficiencies, by doing so Client’s portfolio may not directly align with the Model Portfolio. As a result, Client may receive advice that differs from the advice received by other Accounts using the same Model Portfolio, and Client’s Account may perform differently than other Accounts using the same Model Portfolio. LPL, IAR, and Client cannot alter trades made for tax harvesting purposes. During the term of this Agreement, FutureAdvisor will perform a daily review of the Account to determine if rebalancing is appropriate based on tolerance thresholds established by LPL and/or FutureAdvisor. At each rebalancing review, the Account will be rebalanced if at least one of the Account positions is outside such thresholds, subject to a minimum transaction amount established by LPL and/or FutureAdvisor. In addition, LPL and/or FutureAdvisor may review the Account for rebalancing in the event that the Portfolio Strategist changes a Model Portfolio. FutureAdvisor may delay placing rebalancing transactions for non- qualified accounts by a number of days, to be determined by FutureAdvisor, in an attempt to limit short-term tax treatment for any position being sold. In addition, trading in the Account at any given time is also subject to certain conditions, including but not limited to, conditions related to trade size, compliance tests, the target cash allocation and allocation tolerances. LPL, IAR, and Client cannot alter the rebalancing frequency. Pursuant to this Agreement, Client directs FutureAdvisor to submit Program Securities trades to LPL, in LPL’s capacity as a registered broker-dealer, for execution of the trades. Client acknowledges that FutureAdvisor may in the future choose to process transactions through a broker-dealer other than LPL. IAR is responsible on an ongoing basis as investment advisor and fiduciary for the client relationship, including for recommending the Program to Client; providing ongoing monitoring of the Program, the performance of client accounts, and the services of LPL and FutureAdvisor; determining initial and ongoing suitability of the program for clients; reviewing clients’ suggested portfolio allocations; reviewing and approving any change in Investment Objective due to changes clients make to their Client Profile; answering questions regarding the Program, assisting with paperwork and administrative and operational details for accounts; and being available to clients to discuss investment strategies, changes in financial circumstances, objectives or accounts generally in person or via telephone. IAR may also recommend other suitable investment programs. (d) Statements & Confirms Client may access monthly account statements, showing Account activity and month-end positions, and confirmations of the transactions that occurred within the Account through LPL’s web-based AccountView portal. Confirmations of transactions will be consolidated in the case of rebalancing transactions. Client also acknowledges that detailed quarterly performance information is available in electronic form through the Investor Portal. (e) Account Deposits and Withdrawals Client may make additions to the Account as cash or Legacy Securities at any time and may withdraw Account assets through accessing the Investor Portal, subject to Section 10 below. Client acknowledges that liquidation requests in connection with withdrawals, and changes to the Model Portfolio or Investment Objective selected may take up to 5 business days to process, and, in certain circumstances, may take longer to allocate assets, for example, depending on the ability of LPL to liquidate the Legacy Securities transferred into the Account. Client understands that the Program is designed as a long-term investment vehicle and that asset withdrawals may impair the achievement of Client’s investment objectives. Client cannot pledge assets held in the Account.
Appears in 1 contract
GUIDED WEALTH PORTFOLIOS PROGRAM. The Program offers clients the ability to participate in a centrally managed, algorithm-based investment program, which is made available to Client through a web-based, interactive account management portal (“Investor Portal”). The Program generates investment recommendations through proprietary, automated, computer algorithms (collectively, the “Algorithm”) of FutureAdvisor, based upon model portfolios constructed by LPL and selected for the Account as described below (such model portfolio selected for the Account, the “Model Portfolio”). Client acknowledges and agrees that communications concerning the Program are intended to occur primarily through electronic means (including but not limited to, through email communications or through the Investor Portal), although IAR will be available to discuss investment strategies, objectives or the Account in general in person or via telephone. IAR can provide Client with information regarding other LPL investment programs if Client would prefer more frequent personal interactions with their IAR.
(a) Account Opening As part of the Account opening process (including the questionnaire on the Investor Portal), Client is responsible for providing complete and accurate information regarding, among other things, Client’s age, risk tolerance, and investment horizon (collectively, “Client Profile”). Client acknowledges that LPL, IAR and FutureAdvisor rely on the completeness and accuracy of the Client Profile in order to provide services under the Program, including but not limited to, determination of suitability of the Program for Client and an appropriate investment objective for Client (“Investment Objective”). Client agrees to promptly inform LPL, IAR and FutureAdvisor of any material changes in Client’s Profile through the Investor Portal or by contacting IAR.
(b) Model Portfolios Based upon a Client’s risk tolerance as indicated in the Client Profile, the Client is assigned an investment allocation track (currently Fixed Income Tilt, Balance Tilt or Equity Tilt), the purpose of which is to slowly rotate the Client’s equity allocation to fixed income over time. Upon submitting a completed questionnaire through the Investor Portal, Client will be assigned an Investment Objective and Model Portfolio within the applicable allocation track and based upon factors in the Client Profile, including the Client’s risk tolerance and the number of years remaining until the age of retirement as indicated by Client (such time being referred to herein as the “Retirement Age”). The Model Portfolios have been designed and are maintained by LPL or, in the future, a third-party investment strategist (as applicable, the “Portfolio Strategist”) and shall include a list of securities holdings, relative weightings and a list of potential replacement securities for tax harvesting purposes. FutureAdvisor, IAR, and Client cannot change or customize the Model Portfolios. Only one Model Portfolio is permitted per Account. Currently, there are no third party Portfolio Strategists. As Client approaches the Retirement Age, the Algorithm will automatically adjust Client’s asset allocation. Client acknowledges that any change to the Investment Objective directed by Client due to changes in the Client’s Retirement Age and/or risk tolerance will require written approval from Client and IAR before implementation. Failure to approve the change in Investment Objective may result in Client remaining in a Model Portfolio that is no longer aligned with the Client Profile. Client understands that the Investment Objective selected for the Account is an overall objective for the entire Account and may be inconsistent with a particular holding and the Account’s performance at any time and may be inconsistent with other asset allocations suggested to Client by LPL, IAR or FutureAdvisor prior to Client entering into this Agreement. Client understands that achievement of the stated investment objective is a long-term goal for the Account, and asset withdrawals may impair the achievement of client’s investment objectives. Client understands that a Profile that includes a conservative risk tolerance over a long-term investment horizon may result in the selection of an Investment Objective that is riskier than would be selected over a shorter-term investment horizon. As part of the Account opening process, Client has reviewed and hereby accepts the assigned Investment Objective. Client agrees to contact IAR if Client believes the Investment Objective does not appropriately reflect the Client Profile, such as Client’s risk tolerance.
(c) Account Management Under the Program, Client authorizes LPL and FutureAdvisor on a discretionary basis to purchase and sell exchange-traded funds (“ETFs”) and open-end mutual funds (“Mutual Funds”) (collectively, “Program Securities”) in accordance with the Model Portfolio and subject to certain restrictions described herein, accept, hold and/or sell transferred-in non-model securities (“Legacy Securities”). In order to be transferred into the Account, Legacy Securities must be Mutual Funds with which LPL has a full or partial selling agreement, ETFs or individual U.S. listed stocks. Securities that are not Program Securities included within the Model Portfolio will not be purchased for the Account, and FutureAdvisor, in its sole discretion, will determine whether to hold or sell Legacy Securities, generally, but not solely, with the goal of optimizing tax impacts for Accounts that are subject to tax. In addition, uninvested cash may be invested in money market funds or the Multi-Bank Insured Cash Account (“ICA”) or Deposit Cash Account (“DCA”), as applicable, as described in Section 22 below. Client acknowledges that all dividends paid by the Program Securities in the Account will be contributed to the cash allocation and ultimately reinvested into the Account based on the Model Portfolio once the tolerance within the cash allocation is surpassed. Clients may not impose any restrictions on liquidating Legacy Securities. Clients should not transfer-in securities if they are not willing to have them liquidated at the sole discretion of the FutureAdvisor. Client also authorizes FutureAdvisor to perform tax harvesting when deemed acceptable by the Algorithm based on the Legacy Securities’ respective tax lot information. If tax lot information is missing for a Legacy Security, the Legacy Security will be retained in the Account while FutureAdvisor and IAR use reasonable efforts to obtain the missing information. If the information cannot be obtained within a reasonable timeframe (generally no longer than 30 days), the Legacy Security will be sold and replaced with a Program Security in the Model PortfolioAlgorithm. In order to permit trading in a tax-efficient manner, Client further expressly grants FutureAdvisor the authority to select specific tax lots when liquidating securities within the Account. Although the Algorithm attempts to achieve tax efficiencies, by doing so Client’s portfolio may not directly align with the Model Portfolio. As a result, Client may receive advice that differs from the advice received by other Accounts using the same Model Portfolio, and Client’s Account may perform differently than other Accounts using the same Model Portfolio. LPL, IAR, and Client cannot alter trades made for tax harvesting purposes. During the term of this Agreement, FutureAdvisor will perform a daily review of the Account to determine if rebalancing is appropriate based on tolerance thresholds established by LPL and/or FutureAdvisor. At each rebalancing review, the Account will be rebalanced if at least one of the Account positions is outside such thresholds, subject to a minimum transaction amount established by LPL and/or FutureAdvisor. In addition, LPL and/or FutureAdvisor may review the Account for rebalancing in the event that the Portfolio Strategist changes a Model Portfolio. FutureAdvisor may delay placing rebalancing transactions for non- qualified accounts by a number of days, to be determined by FutureAdvisor, in an attempt to limit short-term tax treatment for any position being sold. In addition, trading in the Account at any given time is also subject to certain conditions, including but not limited to, conditions related to trade size, compliance tests, the target cash allocation and allocation tolerances. LPL, IAR, and Client cannot alter the rebalancing frequency. Pursuant to this Agreement, Client directs FutureAdvisor to submit Program Securities trades to LPL, in LPL’s capacity as a registered broker-dealer, for execution of the trades. Client acknowledges that FutureAdvisor may in the future choose to process transactions through a broker-dealer other than LPL. IAR is responsible on an ongoing basis as investment advisor and fiduciary for the client relationship, including for recommending the Program to Clientthe client; providing ongoing monitoring of the Program, the performance of client accounts, and the services of LPL and FutureAdvisor; determining initial and ongoing suitability of the program for clients; reviewing clients’ suggested portfolio allocations; reviewing and approving any change in Investment Objective due to changes clients make to their Client Profile; answering questions regarding the Program, assisting with paperwork and administrative and operational details for accounts; and being available to clients to discuss investment strategies, changes in financial circumstances, objectives or accounts generally in person or via telephone. IAR may also recommend other suitable investment programs.
(d) Statements & Confirms Client may access monthly account statements, showing Account activity and month-end positions, and confirmations of the transactions that occurred within the Account through LPL’s web-based AccountView portal. Confirmations of transactions will be consolidated in the case of rebalancing transactions. Client also acknowledges that detailed quarterly performance information is available in electronic form through the Investor Portal.
(e) Account Deposits and Withdrawals Client may make additions to the Account as cash or Legacy Securities at any time and may withdraw Account assets through accessing the Investor Portal, subject to Section 10 9 below. Client acknowledges that liquidation requests in connection with withdrawals, and changes to the Model Portfolio or Investment Objective selected may take up to 5 business days to process, and, in certain circumstances, may take longer to allocate assets, for example, depending on the ability of LPL to liquidate the Legacy Securities transferred into the Account. Client understands that the Program is designed as a long-term investment vehicle and that asset withdrawals may impair the achievement of Client’s investment objectives. Client cannot pledge assets held in the Account.
Appears in 1 contract
GUIDED WEALTH PORTFOLIOS PROGRAM. The Program offers clients the ability to participate in a centrally managed, algorithm-based investment program, which is made available to Client through a web-based, interactive account management portal (“Investor Portal”). The Program generates investment recommendations through proprietary, automated, computer algorithms (collectively, the “Algorithm”) of FutureAdvisor, based upon model portfolios constructed by LPL and selected for the Account as described below (such model portfolio selected for the Account, the “Model Portfolio”). Client acknowledges and agrees that communications concerning the Program are intended to occur primarily through electronic means (including but not limited to, through email communications or through the Investor Portal), although IAR Advisor will be available to discuss investment strategies, objectives or the Account in general in person or via telephone. IAR Advisor can provide Client with information regarding other LPL investment programs if Client would prefer more frequent personal interactions with their IARAdvisor.
(a) Account Opening As part of the Account opening process (including the questionnaire on the Investor Portal), Client is responsible for providing complete and accurate information regarding, among other things, Client’s age, risk tolerance, and investment horizon (collectively, “Client Profile”). Client acknowledges that LPL, IAR Advisor and FutureAdvisor rely on the completeness and accuracy of the Client Profile in order to provide services under the Program, including but not limited to, determination of suitability of the Program for Client and an appropriate investment objective for Client (“Investment Objective”). Client agrees to promptly inform LPL, IAR Advisor and FutureAdvisor of any material changes in Client’s Profile through the Investor Portal or by contacting IARAdvisor.
(b) Model Portfolios Based upon a Client’s risk tolerance as indicated in the Client Profile, Client is assigned an investment allocation track (currently Fixed Income Tilt, Balance Tilt or Equity Tilt), the purpose of which is to slowly rotate Client’s equity allocation to fixed income over time. Upon submitting a completed questionnaire through the Investor Portal, Client will be assigned an Investment Objective and Model Portfolio within the applicable allocation track and based upon factors in the Client Profile, including Client’s risk tolerance and the number of years remaining until the age of retirement as indicated by Client (such time being referred to herein as the “Retirement Age”). The Model Portfolios have been designed and are maintained by LPL or, in the future, a third-party investment strategist (as applicable, the “Portfolio Strategist”) and shall include a list of securities holdings, relative weightings and a list of potential replacement securities for tax harvesting purposes. Only one Model Portfolio is permitted per Account. FutureAdvisor, IARAdvisor, and Client cannot change or customize the Model Portfolios. Only one Model Portfolio is permitted per Account. Currently, there are no third party Portfolio Strategists. As Client approaches the Retirement Age, the Algorithm will automatically adjust Client’s asset allocation. Client acknowledges that any change to the Investment Objective directed by Client due to changes in the Client’s Retirement Age and/or risk tolerance will require written approval from Client and IAR Advisor before implementation. Failure to approve the change in Investment Objective may result in Client remaining in a Model Portfolio that is no longer aligned with the Client Profile. Client understands that the Investment Objective selected for the Account is an overall objective for the entire Account and may be inconsistent with a particular holding and the Account’s performance at any time and may be inconsistent with other asset allocations suggested to Client by LPL, IAR Advisor or FutureAdvisor prior to Client entering into this Agreement. Client understands that achievement of the stated investment objective is a long-term goal for the Account, and asset withdrawals may impair the achievement of client’s investment objectives. Client understands that a Profile that includes a conservative risk tolerance over a long-term investment horizon may result in the selection of an Investment Objective that is riskier than would be selected over a shorter-term investment horizon. As part of the Account opening process, Client has reviewed and hereby accepts the assigned Investment Objective. Client agrees to contact IAR Advisor if Client believes the Investment Objective does not appropriately reflect the Client Profile, such as Client’s risk tolerance.
(c) Account Management Under the Program, Client authorizes LPL and FutureAdvisor on a discretionary basis to purchase and sell exchange-traded funds (“ETFs”) and open-end mutual funds (“Mutual Funds”) (collectively, “Program Securities”) in accordance with the Model Portfolio and subject to certain restrictions described herein, accept, hold and/or sell transferred-in non-model securities (“Legacy Securities”). In order to be transferred into the Account, Legacy Securities must be Mutual Funds with which LPL has a full or partial selling agreement, ETFs or individual U.S. listed stocks. Securities that are not Program Securities included within the Model Portfolio will not be purchased for the Account, and FutureAdvisor, in its sole discretion, will determine whether to hold or sell Legacy Securities, generally, but not solely, with the goal of optimizing tax impacts for Accounts that are subject to tax. In addition, uninvested cash may be invested in money market funds or the Multi-Bank Insured Cash Account (“ICA”) or Deposit Cash Account (“DCA”), as applicable, as described in Section 22 below. Client acknowledges that all dividends paid by the Program Securities in the Account will be contributed to the cash allocation and ultimately reinvested into the Account based on the Model Portfolio once the tolerance within the cash allocation is surpassed. Clients may not impose any restrictions on liquidating Legacy Securities. Clients should not transfer-in securities if they are not willing to have them liquidated at the sole discretion of the FutureAdvisor. Client also authorizes FutureAdvisor to perform tax harvesting when deemed acceptable by the Algorithm based on the Legacy Securities’ respective tax lot information. If tax lot information is missing for a Legacy Security, the Legacy Security will be retained in the Account while FutureAdvisor and IAR Advisor use reasonable efforts to obtain the missing information. If the information cannot be obtained within a reasonable timeframe (generally no longer than 30 days), the Legacy Security will be sold and replaced with a Program Security in the Model Portfolio. In order to permit trading in a tax-efficient manner, Client further expressly grants FutureAdvisor the authority to select specific tax lots when liquidating securities within the Account. Although the Algorithm attempts to achieve tax efficiencies, by doing so Client’s portfolio may not directly align with the Model Portfolio. As a result, Client may receive advice that differs from the advice received by other Accounts using the same Model Portfolio, and Client’s Account may perform differently than other Accounts using the same Model Portfolio. LPL, IARAdvisor, and Client cannot alter trades made for tax harvesting purposes. During the term of this Agreement, FutureAdvisor will perform a daily review of the Account to determine if rebalancing is appropriate based on tolerance thresholds established by LPL and/or FutureAdvisor. At each rebalancing review, the Account will be rebalanced if at least one of the Account positions is outside such thresholds, subject to a minimum transaction amount established by LPL and/or FutureAdvisor. In addition, LPL and/or FutureAdvisor may review the Account for rebalancing in the event that the Portfolio Strategist changes a Model Portfolio. FutureAdvisor may delay placing rebalancing transactions for non- qualified accounts by a number of days, to be determined by FutureAdvisor, in an attempt to limit short-term tax treatment for any position being sold. In addition, trading in the Account at any given time is also subject to certain conditions, including but not limited to, conditions related to trade size, compliance tests, the target cash allocation and allocation tolerances. LPL, IARAdvisor, and Client cannot alter the rebalancing frequency. Pursuant to this Agreement, Client directs FutureAdvisor to submit Program Securities trades to LPL, in LPL’s capacity as a registered broker-dealer, for execution of the trades. Client acknowledges that FutureAdvisor may in the future choose to process transactions through a broker-dealer other than LPL. IAR Advisor is responsible on an ongoing basis as investment advisor and fiduciary for the client relationship, including for recommending the Program to Client; providing ongoing monitoring of the Program, the performance of client accounts, and the services of LPL and FutureAdvisor; determining initial and ongoing suitability of the program for clients; reviewing clients’ suggested portfolio allocations; reviewing and approving any change in Investment Objective due to changes clients make to their Client Profile; answering questions regarding the Program, assisting with paperwork and administrative and operational details for accounts; and being available to clients to discuss investment strategies, changes in financial circumstances, objectives or accounts generally in person or via telephone. IAR Advisor may also recommend other suitable investment programs.
(d) Statements & Confirms Client may access monthly account statements, showing Account activity and month-end positions, and confirmations of the transactions that occurred within the Account through LPL’s web-based AccountView portal. Confirmations of transactions will be consolidated in the case of rebalancing transactions. Client also acknowledges that detailed quarterly performance information is available in electronic form through the Investor Portal.
(e) Account Deposits and Withdrawals Client may make additions to the Account as cash or Legacy Securities at any time and may withdraw Account assets through accessing the Investor Portal, subject to Section 10 below. Client acknowledges that liquidation requests in connection with withdrawals, and changes to the Model Portfolio or Investment Objective selected may take up to 5 business days to process, and, in certain circumstances, may take longer to allocate assets, for example, depending on the ability of LPL to liquidate the Legacy Securities transferred into the Account. Client understands that the Program is designed as a long-term investment vehicle and that asset withdrawals may impair the achievement of Client’s investment objectives. Client cannot pledge assets held in the Account.
Appears in 1 contract
Samples: Account Agreement
GUIDED WEALTH PORTFOLIOS PROGRAM. The Program offers clients the ability to participate in a centrally managed, algorithm-based investment program, which is made available to Client through a web-based, interactive account management portal (“Investor Portal”). The Program generates investment recommendations through proprietary, automated, computer algorithms (collectively, the “Algorithm”) of FutureAdvisor, based upon model portfolios constructed by LPL and selected for the Account as described below (such model portfolio selected for the Account, the “Model Portfolio”). Client acknowledges and agrees that communications concerning the Program are intended to occur primarily through electronic means (including but not limited to, through email communications or through the Investor Portal), although IAR Advisor will be available to discuss investment strategies, objectives or the Account in general in person or via telephone. IAR Advisor can provide Client with information regarding other LPL investment programs if Client would prefer more frequent personal interactions with their IARAdvisor.
(a) Account Opening As part of the Account opening process (including the questionnaire on the Investor Portal), Client is responsible for providing complete and accurate information regarding, among other things, Client’s age, risk tolerance, and investment horizon (collectively, “Client Profile”). Client acknowledges that LPL, IAR Advisor and FutureAdvisor rely on the completeness and accuracy of the Client Profile in order to provide services under the Program, including but not limited to, determination of suitability of the Program for Client and an appropriate investment objective for Client (“Investment Objective”). Client agrees to promptly inform LPL, IAR Advisor and FutureAdvisor of any material changes in Client’s Profile through the Investor Portal or by contacting IARAdvisor.
(b) Model Portfolios Based upon a Client’s risk tolerance as indicated in the Client Profile, the Client is assigned an investment allocation track (currently Fixed Income Tilt, Balance Tilt or Equity Tilt), the purpose of which is to slowly rotate the Client’s equity allocation to fixed income over time. Upon submitting a completed questionnaire through the Investor Portal, Client will be assigned an Investment Objective and Model Portfolio within the applicable allocation track and based upon factors in the Client Profile, including the Client’s risk tolerance and the number of years remaining until the age of retirement as indicated by Client (such time being referred to herein as the “Retirement Age”). The Model Portfolios have been designed and are maintained by LPL or, in the future, a third-party investment strategist (as applicable, the “Portfolio Strategist”) and shall include a list of securities holdings, relative weightings and a list of potential replacement securities for tax harvesting purposes. Only one Model Portfolio is permitted per Account. FutureAdvisor, IARAdvisor, and Client cannot change or customize the Model Portfolios. Only one Model Portfolio is permitted per Account. Currently, there are no third party Portfolio Strategists. As Client approaches the Retirement Age, the Algorithm will automatically adjust Client’s asset allocation. Client acknowledges that any change to the Investment Objective directed by Client due to changes in the Client’s Retirement Age and/or risk tolerance will require written approval from Client and IAR Advisor before implementation. Failure to approve the change in Investment Objective may result in Client remaining in a Model Portfolio that is no longer aligned with the Client Profile. Client understands that the Investment Objective selected for the Account is an overall objective for the entire Account and may be inconsistent with a particular holding and the Account’s performance at any time and may be inconsistent with other asset allocations suggested to Client by LPL, IAR Advisor or FutureAdvisor prior to Client entering into this Agreement. Client understands that achievement of the stated investment objective is a long-term goal for the Account, and asset withdrawals may impair the achievement of client’s investment objectives. Client understands that a Profile that includes a conservative risk tolerance over a long-term investment horizon may result in the selection of an Investment Objective that is riskier than would be selected over a shorter-term investment horizon. As part of the Account opening process, Client has reviewed and hereby accepts the assigned Investment Objective. Client agrees to contact IAR Advisor if Client believes the Investment Objective does not appropriately reflect the Client Profile, such as Client’s risk tolerance.
(c) Account Management Under the Program, Client authorizes LPL and FutureAdvisor on a discretionary basis to purchase and sell exchange-traded funds (“ETFs”) and open-end mutual funds (“Mutual Funds”) (collectively, “Program Securities”) in accordance with the Model Portfolio and subject to certain restrictions described herein, accept, hold and/or sell transferred-in non-model securities (“Legacy Securities”). In order to be transferred into the Account, Legacy Securities must be Mutual Funds with which LPL has a full or partial selling agreement, ETFs or individual U.S. listed stocks. Securities that are not Program Securities included within the Model Portfolio will not be purchased for the Account, and FutureAdvisor, in its sole discretion, will determine whether to hold or sell Legacy Securities, generally, but not solely, with the goal of optimizing tax impacts for Accounts that are subject to tax. In addition, uninvested cash may be invested in money market funds or the Multi-Bank Insured Cash Account (“ICA”) or Deposit Cash Account (“DCA”), as applicable, as described in Section 22 below. Client acknowledges that all dividends paid by the Program Securities in the Account will be contributed to the cash allocation and ultimately reinvested into the Account based on the Model Portfolio once the tolerance within the cash allocation is surpassed. Clients may not impose any restrictions on liquidating Legacy Securities. Clients should not transfer-in securities if they are not willing to have them liquidated at the sole discretion of the FutureAdvisor. Client also authorizes FutureAdvisor to perform tax harvesting when deemed acceptable by the Algorithm based on the Legacy Securities’ respective tax lot information. If tax lot information is missing for a Legacy Security, the Legacy Security will be retained in the Account while FutureAdvisor and IAR use reasonable efforts to obtain the missing information. If the information cannot be obtained within a reasonable timeframe (generally no longer than 30 days), the Legacy Security will be sold and replaced with a Program Security in the Model PortfolioAlgorithm. In order to permit trading in a tax-efficient manner, Client further expressly grants FutureAdvisor the authority to select specific tax lots when liquidating securities within the Account. Although the Algorithm attempts to achieve tax efficiencies, by doing so Client’s portfolio may not directly align with the Model Portfolio. As a result, Client may receive advice that differs from the advice received by other Accounts using the same Model Portfolio, and Client’s Account may perform differently than other Accounts using the same Model Portfolio. LPL, IARAdvisor, and Client cannot alter trades made for tax harvesting purposes. During the term of this Agreement, FutureAdvisor will perform a daily review of the Account to determine if rebalancing is appropriate based on tolerance thresholds established by LPL and/or FutureAdvisor. At each rebalancing review, the Account will be rebalanced if at least one of the Account positions is outside such thresholds, subject to a minimum transaction amount established by LPL and/or FutureAdvisor. In addition, LPL and/or FutureAdvisor may review the Account for rebalancing in the event that the Portfolio Strategist changes a Model Portfolio. FutureAdvisor may delay placing rebalancing transactions for non- qualified accounts by a number of days, to be determined by FutureAdvisor, in an attempt to limit short-term tax treatment for any position being sold. In addition, trading in the Account at any given time is also subject to certain conditions, including but not limited to, conditions related to trade size, compliance tests, the target cash allocation and allocation tolerances. LPL, IARAdvisor, and Client cannot alter the rebalancing frequency. Pursuant to this Agreement, Client directs FutureAdvisor to submit Program Securities trades to LPL, in LPL’s capacity as a registered broker-dealer, for execution of the trades. Client acknowledges that FutureAdvisor may in the future choose to process transactions through a broker-dealer other than LPL. IAR Advisor is responsible on an ongoing basis as investment advisor and fiduciary for the client relationship, including for recommending the Program to Clientthe client; providing ongoing monitoring of the Program, the performance of client accounts, and the services of LPL and FutureAdvisor; determining initial and ongoing suitability of the program for clients; reviewing clients’ suggested portfolio allocations; reviewing and approving any change in Investment Objective due to changes clients make to their Client Profile; answering questions regarding the Program, assisting with paperwork and administrative and operational details for accounts; and being available to clients to discuss investment strategies, changes in financial circumstances, objectives or accounts generally in person or via telephone. IAR Advisor may also recommend other suitable investment programs.
(d) Statements & Confirms Client may access monthly account statements, showing Account activity and month-end positions, and confirmations of the transactions that occurred within the Account through LPL’s web-based AccountView portal. Confirmations of transactions will be consolidated in the case of rebalancing transactions. Client also acknowledges that detailed quarterly performance information is available in electronic form through the Investor Portal.
(e) Account Deposits and Withdrawals Client may make additions to the Account as cash or Legacy Securities at any time and may withdraw Account assets through accessing the Investor Portal, subject to Section 10 9 below. Client acknowledges that liquidation requests in connection with withdrawals, and changes to the Model Portfolio or Investment Objective selected may take up to 5 business days to process, and, in certain circumstances, may take longer to allocate assets, for example, depending on the ability of LPL to liquidate the Legacy Securities transferred into the Account. Client understands that the Program is designed as a long-term investment vehicle and that asset withdrawals may impair the achievement of Client’s investment objectives. Client cannot pledge assets held in the Account.
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