We’re an RIA, which means financial advice that follows a higher standard
There are hundreds of thousands of people who call themselves financial advisors. Finding the right advisor can be challenging. As you do your research and hear what others recommend (we encourage you to do both), we also strongly suggest you know the benefits of working with an IRA (Registered Investment Advisor) such as CapWealth Advisors.
An RIA such as CapWealth Advisors has a special “fiduciary duty” to its clients. That means we have a legal obligation to provide proper investment advice and always act in the best interests of our clients. Any other advisor—with banks, brokerages, broker dealers, wirehouses, etc.—is held to a lower “suitability” standard. That means they may suggest an investment deemed suitable for you at that moment, but may make no sense for your situation later in life. With an RIA, we’re obligated to keep tabs on your investments over your life to ensure they remain appropriate for your inevitably changing circumstances—such as marriage, children, evolving financial situation, older age and more. (Senior Advisor Jennifer Pagliara has written a financial column for The Tennessean newspaper about this topic here.)
As part of that higher standard, an RIA is required to maintain public records of how it does business. RIAs must file a Form ADV with the Securities and Exchange Commission that describes exactly how we do business and how we are compensated. The Form ADV consists of two parts: the first contains information about our business regarding ownership and regulatory matters; the second includes two sections known as the ADV Brochure and the Brochure Supplement, which outlines our services, fees, background, and strategies in addition to information on the specific advisor providing financial advice. Before you hire an advisor, always ask for and carefully read both parts of Form ADV. You can also find a copy of an investment advisor’s most recent Form ADV on the SEC’s Investment Advisor Public Disclosure website at www.adviserinfo.sec.gov.
Many RIAs such as CapWealth Advisors operate as independent business owners. As an entrepreneurial business, CapWealth Advisors has a vested interest in building long-term relationships with satisfied clients. We also have with a network of professionals with expertise in accounting, law, estate planning and insurance. These networks allow an RIA to design a comprehensive strategy to meet all of a clients’ financial goals and objectives.
CapWealth Advisors, like most independent RIAs, use a third-party institutional custodian to hold assets—which means even greater peace of mind for clients. Though we are overseeing and managing your assets, your money is safeguarded by a multi-billion-dollar entity such as Pershing or Sterne Agee. The custodian is focused on holding assets and providing infrastructure services such as the execution of trades that we order. That allows CapWealth Advisors to focus solely on understanding your needs and providing the best advice possible. It also adds an important system of checks and balances. You will receive regular statements from our custodian detailing every transaction in your account, in addition to the reports that we provide.