EP Wealth Advisors, LLC Form CRS
(Effective as of June 30, 2020)
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. 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.
If you retain our firm for portfolio management services, we will provide some 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.
Our investment and financial planning assessment begin with initial discovery consisting of discussions, questionnaires and requests for records to understand and document your investment objectives, risk tolerance, and other relevant information (the "suitability information") at the beginning of our advisory relationship. We will use the suitability information we gather to develop a strategy that enables our firm to give you continuous and focused investment advice. As part of our portfolio management services, we may utilize an appropriate model portfolio and/or we may customize an investment portfolio for you in accordance with your risk tolerance and investing objectives. Once we construct an investment portfolio for you, we will monitor your portfolio on an ongoing basis, but no less than annually, and will rebalance the portfolio as required by changes in market conditions and in your financial circumstances.
What fees will I pay?
When we act as your investment adviser, we must act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. As our client, you 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.
EP Wealth Advisors is a fee-only fiduciary. This means that we will only charge fees associated with the services we deliver for our Investment Advisory, Financial Planning, or Tax Preparation Services. The annual fee for investment advisory and financial planning 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, or 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. Clients may be assigned a flat percentage-based fee and/or a different fee schedule than the ones disclosed in our Form ADV part 2A. As a result some clients may pay a fee that may be higher or lower, and fees will vary amongst clients. To keep fees unaffected for clients who originated from advisory firms that EPWA acquired ("Acquisition Clients"), EPWA will attempt to retain the fees that were assigned by the predecessor firm. For this reason, Acquisition Clients may pay a fee of up to 1.25% and/or an annual fee of up to $5,000. An Investment Advisory Agreement indicating the client's respective fee will be required prior to the commencement of the working relationship with our firm.
How do your financial professionals make money?
Our financial professionals or Advisors are compensated with a percentage of the advisory fees we collect for the Investment Management and Financial Planning services we deliver. Our Advisors do not receive commissions, trails (ongoing commissions paid every year an investment continues to be held), or any financial incentives for the securities we recommend. As a result of the way our Advisors are compensated, they have an incentive 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?
As a firm, EP Wealth Advisors, LLC does not have any legal or disciplinary history. 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.