Redrock is the only CEFEX Certified Fiduciary Advisor in Las Vegas
Why Settle For A “Run Of The Mill” Fiduciary?
NEWSFLASH: Redrock Wealth Management is a fee-only CEFEX certified financial advisor firm in the great city of Las Vegas!
#VEGASSTRONG
Our CEFEX certification validates the high standards we practice in our financial planning and investment advisory business.
What is CEFEX certification?
Founded in 2006, CEFEX is the Center for Fiduciary Excellence. They provide an independent third party verification of a financial advisory firm’s practice. Their primary function is to validate the firm is acting as a true fiduciary – at the highest level – in every way possible.
Many financial advisors say they’re a fiduciary, but very few will put that in writing. Fewer still will spend the extensive amount of time and money to actually have it verified from an independent auditor.
We believe it’s critical to delivering the absolute best in retirement, financial, and investment planning for all of our private wealth management and 401k plan clients.
Why is CEFEX certification important?
The CEFEX certification helps ensure well defined and documented processes are in place. These structured processes are more likely to result in investment portfolios that:
Are better designed and have lower costs.
Structured due diligence processes force rational investment and service selection, thereby ensuring the best value for the portfolio.
Structured due diligence processes force rational investment and service selection, thereby ensuring the best value for the portfolio.
Can deal with a wider range of investment conditions.
The investment process is not hostage to market swings. The process anticipates all types of conditions and can rationally account for investment outcomes.
The investment process is not hostage to market swings. The process anticipates all types of conditions and can rationally account for investment outcomes.
Make fewer strategic mistakes.
A well-structured process virtually eliminates deficiencies in portfolio management. The decision rules would not allow it!
A well-structured process virtually eliminates deficiencies in portfolio management. The decision rules would not allow it!
Better manage client expectations through education, reporting and disclosure.
Disclosure alone is often insufficient to help investors. The fiduciary process leads to a more educated client who can better understand the components of their portfolios. The process should enable greater personalization, based on risk preferences and financial needs.
Disclosure alone is often insufficient to help investors. The fiduciary process leads to a more educated client who can better understand the components of their portfolios. The process should enable greater personalization, based on risk preferences and financial needs.
What are the CEFEX certification benefits to clients?
The biggest benefit is knowing your financial advisor is on the forefront of the industry, and never accepts second best! We’re constantly honing our skill and education to help ensure we’re providing top-notch financial advice and guidance.
Voluntary adherence to a fiduciary process can narrow the gap between compliant and non-compliant behaviour, allowing regulators to focus on significant deficiencies and identify intentional bad behaviour.
Excerpt from CEFEX presentation to SEC Office of Compliance Inspections and Examinations,
Feb. 4, 2014.
Feb. 4, 2014.
That being said, there are some other benefits which go along with that:
Higher probability of enhanced portfolio outcomes.
Documented, repeatable processes are more likely to generate higher returns over time because they are not dependent on timing, luck, and “in-fashion” or un-substantiated decisions.
Documented, repeatable processes are more likely to generate higher returns over time because they are not dependent on timing, luck, and “in-fashion” or un-substantiated decisions.
Increased transparency.
Far too many advisors operate like black boxes. They cannot (or will not) describe their investment process, thereby avoiding accountability to the investor. The prudent process has nothing to hide.
Far too many advisors operate like black boxes. They cannot (or will not) describe their investment process, thereby avoiding accountability to the investor. The prudent process has nothing to hide.
Increased oversight.
Independent fiduciary assessments supplement the advisor’s internal compliance practices and their mandatory statutory regulatory compliance. The rules associated with statutory compliance are designed to constrain bad conduct, but it is impossible to set rules for every situation. Independent fiduciary assessments focus oversight on process, so virtually all situations are covered.
Independent fiduciary assessments supplement the advisor’s internal compliance practices and their mandatory statutory regulatory compliance. The rules associated with statutory compliance are designed to constrain bad conduct, but it is impossible to set rules for every situation. Independent fiduciary assessments focus oversight on process, so virtually all situations are covered.
Competitive influence.
The CEFEX-certifed advisor is earning your business on fiduciary principles. The firm is striving to be the best fiduciary in a crowded market!
The CEFEX-certifed advisor is earning your business on fiduciary principles. The firm is striving to be the best fiduciary in a crowded market!
So what exactly did the CEFEX certification process entail?
The CEFEX certification process essentially validates the financial advisor’s current practices. If the policies and procedures aren’t up to par, the certification process issues opportunities for improvement. Only after a CEFEX certification board has reviewed all of the facts and findings do they grant the actual certification to an applicant.
The CEFEX process:
Validates practices and processes.
Includes review of file administration, information gathering, custody, brokerage, and best execution, using a consistent evidence-based methodology.
Includes review of file administration, information gathering, custody, brokerage, and best execution, using a consistent evidence-based methodology.
Assesses structure, systems, support and reporting.
Analyzes the Investment Policy Statement and the due diligence process, comparing the advisor’s investment line-up to a standard set of duciary screens. The assessment also reviews how conflicts of interest, if any, are managed and disclosed.
Analyzes the Investment Policy Statement and the due diligence process, comparing the advisor’s investment line-up to a standard set of duciary screens. The assessment also reviews how conflicts of interest, if any, are managed and disclosed.
Reviews risk assessment.
Reviews how asset allocation is based on capital market inputs and risk assumptions used by the advisor. How does the advisor manage risk and return characteristics of the portfolio?
Reviews how asset allocation is based on capital market inputs and risk assumptions used by the advisor. How does the advisor manage risk and return characteristics of the portfolio?
Samples client files.
Verifies that client files contain the Service Agreement deliverables, records, and outputs of the investment management process for the specific client.
Verifies that client files contain the Service Agreement deliverables, records, and outputs of the investment management process for the specific client.
Is complementary to regulatory exams.
The CEFEX process-based assessment takes a different approach from the regulator’s rules-based approach. A background check including regulatory, legal and bankruptcy history is also conducted.
The CEFEX process-based assessment takes a different approach from the regulator’s rules-based approach. A background check including regulatory, legal and bankruptcy history is also conducted.
Is the person you entrust with your finances a CEFEX certified financial advisor?
You’ve saved, you’ve sacrificed, you’ve spent a lifetime getting into position to retire. It’s crunch time!
Are you willing to entrust your financial future to an advisor who hasn’t put the same efforts into being the very best they can be for you?
You know you should require a fee-only advisor; you’ve probably even heard the term “fiduciary”. It’s time to raise your standards for retirement planning and investment management to a level very few advisors can handle.
