Vermillion Financial Advisors, Inc.
Client Relationship Summary
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?
Investment Advisory Services and Employer sponsored retirement account fees will be charged in arrears based on the greater of a fixed minimum fee or according to our asset management fee schedule that is calculated and collected on a monthly basis based on the value of the investments in your account(s). Our fee schedule ranges from a high of 1.5% to a low .5% depending on the value of the investments in your account. The larger your account typically the lower the rate of our fee. Our incentive is to increase the value of your account over time
which will increase the amount of our fees over time but lower the rate as a percentage of your assets under management. The more assets there are in your account, the more you will pay in fees, and we may therefore have an incentive to encourage you to increase the assets in your account.
The broker-dealer (custodian) that holds your assets can charge you a separate transaction fee when we buy or sell an investment for you. These transaction fees are in addition to our advisory fee for our investment advisory
service(s).
You could also pay charges imposed by the broker-dealer/Custodian holding your accounts for certain investments and maintaining your account. Some investments, such as mutual funds and exchange traded funds charge additional fees that will reduce the value of your investments over time.
You will pay fees and costs whether you make or lose money on your investments. 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.
For additional information, please see Form ADV, Part 2A Brochure – Items 5 and 7.
Conversation Starter. Ask your financial professional-
- Help me understand how these fees and costs might affect my investments. If I give you $1,000,000 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 some conflicts with your interests. You should understand and ask us about these conflicts because they affect the investment advice we provide to you. Here are
some examples to help you understand what this means.
The firm’s revenue is derived from the advisory fees we collect from your accounts each month. Neither VFA nor any of our employees receives commissions for the sale of securities to our clients. VFA receives no compensation or kick-backs from any fund manager or other third-party for the investments that it selects for client accounts.
The recommendation by VFA or its representatives that a client purchase an insurance commission product presents a conflict of interest, as the receipt of commissions may provide an incentive to recommend investment products based on commissions to be received, rather than on a particular client’s need. During the last 10 years revenue generated by commissions earned on the sale of insurance products represent less than 2% of the firm’s revenue. This reasonably indicates but does not guarantee that insurance sales are more of an accommodation for clients rather than a primary focus of VFA. No client is under any obligation to purchase any commission insurance product from VFA’s representatives. Clients are reminded that they may purchase insurance products
recommended by VFA through other, non-affiliated insurance agents. VFA’s Chief Compliance Officer remains available to address any questions that a client or prospective client may have regarding the above conflict of interest. Additional information about our conflicts of interest can be found in Item 10 of our Firm Brochure.
Conversation Starter. Ask your financial professional-
- How might your conflicts of interest affect me, and how will you address them?
For additional information, please see Form ADV, Part 2A brochure.
Conversation Starter. Ask your financial professional-
- As a financial professional, do you have any disciplinary history? For what type of conduct?
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?
Vermillion Financial Advisors, Inc. (“Vermillion”) is an SEC registered investment adviser located in South Barrington, Illinois. Vermillion and its representatives are in compliance with the current filing requirements imposed upon SEC registered investment advisers by those states in which Vermillion maintains clients.
Vermillion may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Vermillion’s web site is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links.
Accordingly, the publication of Vermillion’s web site on the Internet should not be construed by any consumer and/or prospective client as Vermillion’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by Vermillion with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Vermillion, please contact the SEC or the state securities regulators for those states in which Vermillion maintains a notice filing. A copy of Vermillion’s current written disclosure statement discussing Vermillion’s business operations, services, and fees is available from Vermillion upon written request.
Vermillion does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Vermillion’s web site or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by Vermillion), will be profitable or equal any historical performance level(s).
Certain portions of Vermillion’s web site (i.e. newsletters, articles, commentaries, etc.) may contain a discussion of, and/or provide access to, Vermillion’s (and those of other investment and non-investment professionals) positions and/or recommendations as of a specific prior date. Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Vermillion, or from any other investment professional. Vermillion is neither an attorney nor an accountant, and no portion of the web site content should be interpreted as legal, accounting or tax advice.
Rankings and/or recognition by unaffiliated rating services and/or publications should not be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if Vermillion is engaged, or continues to be engaged, to provide investment advisory services, nor should it be construed as a current or past endorsement of Vermillion by any of its clients. Rankings published by magazines, and others, generally base their selections exclusively on information prepared and/or submitted by the recognized adviser.
Each client and prospective client agrees, as a condition precedent to his/her/its access to Vermillion’s web site, to release and hold harmless Vermillion, its officers, directors, owners, employees and agents from any and all adverse consequences resulting from any of his/her/its actions and/or omissions which are independent of his/her/its receipt of personalized individual advice from Vermillion.
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