Webster Wealth Advisors, Inc.

Transcription

1 Webster Wealth Advisors, Inc. 195 Danbury Road, Suite 220 Davenport Building Wilton, CT (888) March 30, 2015 This Brochure provides information about the qualifications and business practices of Webster Wealth Advisors, Inc. If you have any questions about the contents of this Brochure, please contact us at or The information in this Brochure has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority. Webster Wealth Advisors, Inc. is a registered investment adviser. Registration of an Investment Adviser does not imply any level of skill or training. The oral and written communications of an Adviser provide you with information about which you determine to hire or retain an Adviser. Additional information about Webster Wealth Advisors, Inc. also is available on the SEC s website at i

2 Item 2 Material Changes On July 28, 2010, the United State Securities and Exchange Commission published Amendments to Form ADV which amends the disclosure document that we provide to clients as required by SEC Rules. This Brochure dated March 30, 2015 is prepared according to those SEC requirements and rules. In the future, this Item will discuss only specific material changes that are made to the Brochure and provide clients with a summary of such changes. We will also reference the date of our last annual update of our brochure. In the past we have offered or delivered information about our qualifications and business practices to clients on at least an annual basis. Pursuant to new SEC Rules, we will ensure that you receive a summary of any materials changes to this and subsequent Brochures within 120 days of the close of our business fiscal year. We may further provide other ongoing disclosure information about material changes as necessary. We will further provide you with a new Brochure as necessary based on changes or new information, at any time, without charge. Currently, our Brochure may be requested by contacting Webster Wealth Advisors, Inc. at or cperry@websterwealthadvisors.com. Our Brochure is also available on our web site also free of charge. Additional information about Webster Wealth Advisors, Inc. is also available via the SEC s web site The SEC s web site also provides information about any persons affiliated with Webster Wealth Advisors, Inc. who are registered, or are required to be registered, as investment adviser representatives of Webster Wealth Advisors, Inc. ii

3 Item 3 Table of Contents Item 1 Cover Page... i Item 2 Material Changes... ii Item 3 Table of Contents...iii Item 4 Advisory Business... 1 Item 5 Fees and Compensation... 1 Item 6 Performance Based Fees and Side By Side Management... 2 Item 7 Types of Clients... 2 Item 8 Methods of Analysis, Investment Strategies and Risk of Loss... 2 Item 9 Disciplinary Information... 3 Item 10 Other Financial Industry Activities and Affiliations... 3 Item 11 Code of Ethics... 5 Item 12 Brokerage Practices... 6 Item 13 Review of Accounts... 7 Item 14 Client Referrals and Other Compensation... 7 Item 15 Custody... 8 Item 16 Investment Discretion... 8 Item 17 Voting Client Securities... 8 Item 18 Financial Information... 8 Item 19 Requirements for State Registered Advisers... 8 Brochure Supplements...Eileen T. Cahill, Joe M. Cox, II and Christopher N. Perry iii

4 Item 4 Advisory Business Webster Wealth Advisors, Inc. is a wholly owned subsidiary of Webster Financial Corporation. Both Webster Bank, N.A. and Webster Wealth Advisors, Inc. are owned by Webster Financial Corporation. Webster Wealth Advisors, Inc. and its predecessors were originally established in 1987 and later incorporated in Webster Financial Corporation acquired Fleming, Perry & Cox, Inc. in October, The name of Fleming, Perry & Cox, Inc. was changed to Webster Wealth Advisors, Inc. in January, Webster Wealth Advisors, Inc. provides financial planning services consistent with individual client's financial and tax status, risk tolerance and investment objectives. Item 5 Fees and Compensation The specific manner in which fees are charged by Webster Wealth Advisors, Inc. is established in a client s written agreement with Webster Wealth Advisors, Inc. For a fee, Webster Wealth Advisors, Inc. will provide planning in any one or more of the following areas consistent with individual client's financial and tax status, risk tolerance and investment objectives: tax planning analysis, estate planning analysis, investment, business, insurance, and cash flow management. Webster Wealth Advisors, Inc. may also provide general non securities advice on topics, which may include budgetary planning, estate planning analysis, business planning, and retirement cash flow planning and/or fringe benefit analysis. All arrangements concerning fees and services will be agreed upon in advance and will be memorialized in a written contract. It is estimated that the fees for simple tax and estate planning services will range from approximately $5,000 to $15,000 depending upon the complexity. It is estimated that complex plans will have a higher fee commensurate with the complexity of services provided. All fees are negotiable, and Webster Wealth Advisors, Inc. will generally require a 50% deposit prior to the commencement of work to be applied against future services. Any client who is not satisfied with the financial plan produced may receive a full refund within ten (10) days of the receipt of the financial plan, or within six (6) months of the execution of the contract if no final presentation is made. The financial planning process should take no more than six (6) months to complete. However, the financial plan must be returned to receive the refund. Fees are billed on a sliding scale taking into consideration the client's income, net worth and the complexity of the financial plan. Unless otherwise stated, client agreements are for a period of one year. The advisory agreement may be terminated at any time at the client's discretion. The client may receive a refund 1

5 provided the client makes a written request for the refund within ten days of the final plan presentation or within six months of the execution date of the contract in the event that no final presentation is made. Consultation services will be provided in any one or more of the above described areas. Estimates of fees will be provided prior to rendering services. Any of such consulting services for which the fee will be computed on an hourly basis will have a maximum hourly charge of $ Hourly charges may be negotiated and in most instances will be below the maximum amount stated. In certain instances, depending upon the client's needs and the services to be performed by the Advisor, the advisory fee may be based upon individual negotiations with the client. In such instances, the fee is stipulated and agreed upon in the advisory contract. The associated persons of Webster Wealth Advisors, Inc. may receive 12b 1 distribution fees and other commissions from investment companies and product sponsors in connection with the placement of client funds. In addition, Webster Wealth Advisors, Inc. may receive a portion of the management and administrative fees charged to clients by third party investment advisors. In such cases, the client shall be informed that the associated person is receiving such revenue in addition to any financial planning fee(s) paid by the client. Item 6 Performance Based Fees and Side By Side Management Webster Wealth Advisors, Inc. does not charge any performance based fees (fees based on a share of capital gains on or capital appreciation of the assets of a client). Item 7 Types of Clients Webster Wealth Advisors, Inc. provides financial planning and advisory services to individuals, high net worth individuals, charitable institutions, foundations, endowments, and other U.S. corporations. Item 8 Methods of Analysis, Investment Strategies and Risk of Loss Investing in securities involves risk of loss that clients should be prepared to bear. 2

6 In general, security analysis by the Advisor will include a fundamental analysis of an industry and/or the particular security. Information will be obtained from a major investment service, i.e., Standard & Poor's, Value Line, etc. If information is not available from a major investment service or is limited, corporate annual reports and/or 10ks will be obtained. The material mentioned may be supplemented by information in business publications such as the Wall Street Journal, Barron s, or any other publication or periodical available to the general public which provides information on a security or industry. In general, investment strategies will involve long term investments (exceeding one year) unless negative information or market changes require shorter term investments. In the event that major short term movements in securities (10 20% in three months or less) have occurred, such securities may be sold to realize profits. Securities may be sold in less than a year to realize short term losses for tax purposes. Stop loss orders may be used to reduce downside risk. Technical analysis will be limited to timing of security transactions within a trading range as defined by a major investment service. Tax oriented investments will be examined by reviewing financial statement projections, past history of general partners, Regulation D offerings, and tax risks associated with the transactions. Item 9 Disciplinary Information Registered investment advisers are required to disclose all material facts regarding any legal or disciplinary events that would be material to your evaluation of Webster Wealth Advisors, Inc. or the integrity of Webster Wealth Advisors, Inc. s management. Webster Wealth Advisors, Inc. has no information applicable to this Item. Item 10 Other Financial Industry Activities and Affiliations Webster Wealth Advisors, Inc. is a registered and licensed professional organization providing advisory services covering a diverse spectrum of financial products and vehicles including, but not limited to; equity securities, warrants, corporate debt securities, certificates of deposit, municipal securities, investment company securities (including variable life, annuities and mutual funds), U.S. Government securities, options contracts as well as limited partnership interests in real estate, oil and gas, alternative energy and leasing programs. The primary business of Webster Wealth Advisors, Inc. is providing financial planning and brokerage services to clients. The associated persons of Webster Wealth Advisors, Inc. spend 3

7 approximately 70% of his or her time engaged in the activities of a registered representative. The associated persons of Webster Wealth Advisors, Inc. are registered representatives of Commonwealth Equity Services, Inc. DBA Commonwealth Financial Network ( Commonwealth ). Commonwealth is a FINRA registered broker/dealer, and is also licensed as a broker/dealer with the states in which Commonwealth's or its representatives offer securities to clients. Commonwealth's registered representatives may act as the advisory client's representative in the execution of securities transactions on a normal and customary basis. The applicable provisions of Section 206 of the Investment Advisor's Act of 1940 are strictly complied with in the execution of each transaction. Webster Wealth Advisors, Inc. may refer clients to Commonwealth Equity Services, Inc. DBA Commonwealth Financial Network ( Commonwealth ), an investment advisory firm registered with the US Securities and Exchange Commission. The associated persons of Webster Wealth Advisors, Inc. may offer the services of various third party investment advisers through this association with Commonwealth. Clients shall receive the third party adviser's Form ADV Part 2 or equivalent brochure (in the case of SEI's AMP disclosure is made to the client via Commonwealth's Form ADV Part 2). The associated persons of Webster Wealth Advisors, Inc. may offer Commonwealth's PPS Direct Account program to suitable clients. Clients shall receive Commonwealth's Form ADV Part 2 which fully describes the operation of and fees associated with the PPS Direct Account program. Mr. Perry and Mr. Cox of Webster Wealth Advisors, Inc. are licensed life, health, and accident insurance brokers with all the appropriate state Departments of Insurance, and may receive customary commissions on insurance products sold. In such instances, there is no advisory fee associated with these insurance products. The associated persons of Webster Wealth Advisors, Inc. may receive 12b 1 distribution fees and other commissions from investment companies and product sponsors in connection with the placement of client funds. In addition, the associated persons of Webster Wealth Advisors, Inc. may receive a portion of the management and administrative fees charged to clients by third party investment advisors. In such cases, the client shall be informed that the associated person is receiving such revenue in addition to any financial planning fee(s) paid by the client. Webster Wealth Advisors, Inc. is a wholly owned subsidiary of Webster Financial Corporation. Both Webster Bank, N.A. and Webster Wealth Advisors, Inc. are owned by Webster Financial Corporation. 4

8 Item 11 Code of Ethics Webster Wealth Advisors, Inc. has a fiduciary duty to clients to act in the best interest of the client and always place the client's interests first and foremost. Webster Wealth Advisors, Inc. takes seriously its compliance and regulatory obligations and requires all staff to comply with such rules and regulations as well as Webster Wealth Advisors Inc.'s policies and procedures. Further, Webster Wealth Advisors, Inc. strives to handle clients' non public information in such a way to protect information from falling into hands that have no business reason to know such information and provides clients with Webster Wealth Advisors Inc.'s Privacy Policy. As such, Webster Wealth Advisors, Inc. maintains a Code of Ethics for its Advisory Representatives, supervised persons and staff. The Code of Ethics contains provisions for standards of business conduct in order to comply with applicable securities laws, personal securities reporting requirements, pre approval procedures for certain transactions, code violations reporting requirements, and safeguarding of material non public information about client transactions. Further, Webster Wealth Advisors Inc.'s Code of Ethics establishes Webster Wealth Advisors Inc. s expectation for business conduct. A copy of the Code of Ethics will be provided to any client or prospective client upon request. Advisory Representatives may buy or sell securities identical to those securities recommended to clients. Therefore, Advisory Representatives may have an interest or position in certain securities that are also recommended and bought or sold to clients. Any such securities transactions are likely to be insignificant in relation to the markets as a whole. As a practice the transactions, if any, are executed after related client transactions have been executed. Advisory Representatives will not put their interests before a client's interest. Advisory Representatives may not trade ahead of their clients or trade in such a way to obtain a better price for themselves than for their clients. However, in all cases, full disclosure is provided to the client. Webster Wealth Advisors, Inc. is required to maintain a list of all securities holdings for its associated persons. Further, associated persons are prohibited from trading on non public information or sharing such information. Clients have the right to decline any investment recommendation. Webster Wealth Advisors, Inc. and its associated persons are required to conduct their securities and investment advisory business in accordance with all applicable Federal and State securities regulations. 5

9 Item 12 Brokerage Practices The associated persons of Webster Wealth Advisors, Inc. may be Registered Representatives of Commonwealth Financial Network, a registered broker/dealer, member FINRA and SIPC. They may have limited access to certain product sponsors where selling agreements have been executed by Commonwealth. The associated persons of Webster Wealth Advisors, Inc. who are Registered Representatives of Commonwealth are subject to FINRA Conduct Rule 3040 which may restrict such registered individuals from conducting securities transactions away from Commonwealth unless Commonwealth provides the associated persons with written authorization. Therefore, clients are advised that the associated persons may be limited to conducting securities transactions through Commonwealth and its clearing firm, National Financial Services, LLC. Factors which Webster Wealth Advisors, Inc. considers in recommending broker dealers to clients include their respective financial strength, reputation, execution, pricing, research, and service. The associated persons of Webster Wealth Advisors, Inc. may suggest that clients use Commonwealth as the Broker/Dealer for executing securities transactions. Clients are not obligated to use Commonwealth as the Broker/Dealer, and are free to use the Broker/Dealer of their choice, however, if the client wishes to implement the plan or advice through the associated persons of Webster Wealth Advisors, Inc., then the Client may only use Commonwealth to do so. Investment products and services offered by Webster Wealth Advisors, Inc. are described in Item 10 and the associated research is conducted by the means described in Item 8. Client transactions will be charged according to Commonwealth's then current commission schedule and clients may pay higher commission rates and other fees than otherwise available. The client may be assessed transaction fees charged by custodians and/or product sponsors, in addition to normal and customary commissions, all of which are fully disclosed to the client. These fees and expenses are separate and distinct from any fee(s) charged by the associated persons of Webster Wealth Advisors, Inc. 6

10 Item 13 Review of Accounts Financial plans are prepared for clients who have retained Webster Wealth Advisors, Inc.'s services for this purpose. Upon completion of the plan, Eileen T. Cahill, Joe M. Cox, II or Christopher N. Perry, Managing Directors of Webster Wealth Advisors, Inc. will meet with the client to review the plan and answer any questions the client may have about the contents of the plan. There are no different levels of review. After this consultation, there are no required reviews unless the client or a member of the investment committee requests additional meetings. Christopher N. Perry also serves as Chief Compliance Officer and is responsible for policy and procedures of the firm. After approximately one year, Webster Wealth Advisors, Inc. may contact financial planning clients and offer to review their financial situation. This will help to ensure that the analysis still reflects the client's financial goals and objectives, and give Webster Wealth Advisors, Inc. the opportunity to amend the analysis to accommodate any changes in the client's circumstances (retirement, marriage, disability, etc.). This service is optional and neither the client nor Webster Wealth Advisors, Inc. is obligated to accept. A mutually agreed upon fee shall be charged if the client chooses to have this annual review. Webster Wealth Advisors, Inc. reserves the right to waive this annual renewal fee under certain circumstances. Since the original advisory contract signed by the client was valid for one year only, the client electing an annual review shall execute a new advisory contract. Financial planning clients receive no reports other than those described above. However, the client may, at his or her discretion, choose to implement the financial plan through Webster Wealth Advisors, Inc. in the associated person's capacity of registered representative. In that event, the client will receive monthly, quarterly, and/or annual statements from investment companies, product sponsors, broker/dealers and/or custodians. Item 14 Client Referrals and Other Compensation Webster Wealth Advisors, Inc. does not provide compensation nor does it have any arrangements with any clients or third parties for the purpose of providing client referrals. 7

11 Item 15 Custody Clients should receive at least quarterly statements from the broker dealer, bank or other qualified custodian that holds and maintains client s investment assets. Webster Wealth Advisors, Inc. urges you to carefully review such statements. Webster Wealth Advisors, Inc. does not produce separate statements for its clients and does not custody assets. Item 16 Investment Discretion Webster Wealth Advisors, Inc. does not take discretionary authority from any client. Item 17 Voting Client Securities As a matter of firm policy and practice, Webster Wealth Advisors, Inc. does not have any authority to and does not vote proxies on behalf of advisory clients. Clients retain the responsibility for receiving and voting proxies for any and all securities maintained in client portfolios. Webster Wealth Advisors, Inc. may provide advice to clients regarding the clients voting of proxies. Item 18 Financial Information Registered investment advisers are required in this Item to provide you with certain financial information or disclosures about Webster Wealth Advisors Inc. s financial condition. Webster Wealth Advisors, Inc. has no financial commitment that impairs its ability to meet contractual and fiduciary commitments to clients, and has not been the subject of a bankruptcy proceeding. Item 19 Requirements for State Registered Advisers The Investment Committee of Webster Wealth Advisors, Inc consists of Joe M. Cox, II, Christopher N. Perry and Eileen T. Cahill, employees of Webster Wealth Advisors, Inc. 8

12 The name, year of birth, formal education after high school and business background for the preceding five years of each member of the Investment Committee is as follows: Joe M. Cox, II, CFP, AAMS, CRPC, AIF ; 1958; B.S. Biochemistry Johns Hopkins University; Managing Director of Webster Wealth Advisors, Inc. (financial planning and investment). Joe Cox has been a Registered Representative with Commonwealth Financial Network since Joe Cox is also an Investment Advisory Representative with Commonwealth Financial Network since Christopher N. Perry, CFP ; 1969; B.A. English Williams College; Managing Director of Webster Wealth Advisors, Inc. (financial planning and investment). Christopher Perry has been a Registered Representative with Commonwealth Financial Network since Christopher Perry is also an Investment Advisory Representative with Commonwealth Financial Network since Eileen T. Cahill; 1960; B.B.A Finance Iona College, M.B.A. Finance Fordham University; Managing Director of Webster Wealth Advisors, Inc. (financial planning and investment). Eileen T. Cahill has been a Registered Representative with Commonwealth Financial Network since Eileen T. Cahill is also an Investment Advisory Representative with Commonwealth Financial Network since