EP Wealth Advisors, LLC Form CRS
(Effective as of March 31, 2023)
EP WEALTH ADVISORS, LLC is a registered investment adviser with the U.S. Securities and Exchange Commission (“SEC”). Registration with the SEC does not constitute an endorsement by the SEC, nor does it imply that EP Wealth Advisors, LLC has attained a certain level of skill or ability. Brokerage and investment advisory services and fees differ, and it is important for you to understand these differences. Free and simple tools are available to research firms and financial professionals at lnvestor.gov/CRS, which also provides educational materials about broker-dealers, investment advisors and investing.
What investment services and advice can you provide me?
EP Wealth Advisors, LLC (“EPWA”) provides discretionary portfolio management services and under limited circumstances non- discretionary portfolio management services tailored to meet the needs and investment objectives of our clients. If you grant us Discretionary Authority, EPWA shall have full power and authority to rebalance your Managed Account(s) and to supervise and direct the investments in those Account(s), as determined in EPWA’s sole discretion, making and implementing investment decisions without prior consultation with Client. There are no material limitations to the discretionary authority provided to EPWA or the underlying investments that EPWA recommends. If you grant us Non-Discretionary Authority, EPWA’s responsibilities will be limited to providing you with periodic recommendations, including, rebalance recommendations and recommendations to purchase and/or sell securities in your Managed Account(s). You would be solely responsible for reviewing said recommendations and for notifying EPWA of your decision whether to approve or not any such recommendations. As part of our standard services, to both Discretionary and Non-Discretionary clients, we will monitor your portfolio on an ongoing basis, but no less than annually. The monitoring of your portfolio will be performed with no material limitations.
Our firm’s standard services include portfolio management services and financial planning and consulting services. These services may address subjects, including but not limited to, cash flow, wealth management/transfer strategies, estate planning, risk assessment, executive benefits and business succession/planning, children's education, 1031 tax exchanges, real estate/mortgages and retirement planning, family planning, insurance, tax planning, and investments. Our firm also offers tax preparation and filing services. If you choose to engage us for tax preparation services, you will enter into a separate agreement and may pay a separate fee in addition to the fees paid to EP Wealth Advisors for investment advisory and financial planning services. We also offer Retirement Plan Advisory Services. Our firm also provides advisory services to retirement plans subject to the Employee Retirement Income Security Act of 1974 ("ERISA"), including participant-directed defined contribution plans. Furthermore, at our discretion and in limited circumstances, to certain clients, we will offer EPWA Wrap Fee Program. In general, we require a minimum of $500,000 to open and maintain an advisory account. At our discretion, we may waive this minimum if you appear to have significant potential for increasing your assets under our management.
For additional information, please see Items 4 and 7 of our Form ADV Part 2A which can be accessed by clicking here.
CONVERSATION STARTER: Ask your financial professional: 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?”
What fees will I pay?
You will pay an asset-based fee, fixed fee, combination of both, or a wrap fee (hereinafter referred to as “Advisory Fees”) for our Investment Management and Financial Planning Services. As a result, if you pay an asset based fee, the more assets there are in your account, the more you will pay in fees, and the firm and your Advisor may therefore have an incentive to encourage you to increase the assets in your account. The annual fee for portfolio management services is billed either quarterly in advance based on the market value of the assets under management on the last day of the preceding calendar quarter, quarterly in arrears (after the services have been provided) based on the market value of the assets under management (as described in the investment advisory agreement) on the last day of the calendar quarter. Our clients will pay fees whether you make or lose money on your investment accounts. 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. The fees that you pay to our firm are separate and distinct from the fees and expenses charged by mutual funds, exchange traded funds or the transaction charges and/or brokerage fees assigned by your respective account custodian. Our firm also offers, in limited circumstances, wrap fee program fees. The EPWA Wrap Fee Program will be offered to clients at EPWA’s discretion and in limited circumstances. This program is one under which specified fees that include securities transaction fees for certain mutual funds, custodial costs, administrative fees and trade-away fees (herein “Covered Costs”) are combined together with the client’s investment advisory fees. As such, these fees are consolidated into a single asset-based fee. Additionally, because of the consolidation of fees, the fee schedule assigned to wrap fee clients are usually higher than the typical asset-based advisory fee assigned to clients that are not EPWA Wrap Fee Program clients.
For additional information, please see Items 5.A., B.,C., and D of our Form ADV Part 2A which can be accessed by clicking here.
CONVERSATION STARTER: Ask your financial professional—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 for me?
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 interest and not put our interest ahead of yours. At the same time, the way we make money creates conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. Here are some examples to help you understand what this means. As a result of the way our Advisors are compensated, they are incentivized, therefore creating a conflict of interest, to move accounts that are not managed by our firm to our management or to encourage you to add assets to the accounts which we manage for you. For example, if you have assets in an account that is not managed by EPWA, your EPWA Advisor will be incentivized to recommend that the account be managed by EPWA. This may produce a recommendation to close, rollover, consolidate, or transfer the account. This recommendation creates a conflict of interest as it can increase the fee EPWA may earn, and analogously, the compensation of the respective advisor.
For additional information, please see our Form ADV Part 2A which can be accessed by clicking here.
CONVERSATION STARTER: Ask your financial professional— How might your conflicts of interest affect me, and how will you address them?
How do your financial professionals make money?
Our Advisors are compensated a percentage of the advisory fees we collect for the Investment Management and Financial Planning services we deliver. Our Advisors do not receive commission, trails, or any financial incentives for the securities we recommend. As a result of the way our Advisors are compensated, they are incentivized, therefore creating a conflict to move accounts to our management or add assets to the accounts which we manage for you.
Do you or your financial professionals have legal or disciplinary history?
No, as a firm, EP Wealth Advisors, LLC does not have any legal or disciplinary history. Yes, however, some of our individual Advisors do. Visit Investor.gov/CRS for a free and simple search tool to research us and our financial professional Advisors. We always recommend that all clients ask our Advisors or any financial professional, do you have any disciplinary history? For what type of conduct? As a fiduciary we pride ourselves in being transparent and open to answer any questions you may have.
CONVERSATION STARTER: Ask your financial professional— 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?