Basic Requirements
- Minimum of 7 years as an advisor for 1 partner/principal
- Fully operational as a practice for a minimum of 1 year
- Must incorporate a fiduciary model
- Completion of online survey
- Evaluations focused on wealth management
- Acceptable compliance record
Quantitative Metrics
- Revenues
- Assets under management—and quality of those assets
- Client-related data, such as retention rates
- Portfolio performance is not a factor
Qualitative Metrics
- Telephone, virtual and in-person meetings with firms (if an in-person meeting cannot be accomplished, exceptions are considered in which the interview will occur after a ranking has been published).
- Compliance records. Some “dings” can be overlooked (e.g., firm or product failure beyond the scope of an advisor's due diligence; the older a ding, the less we look). Since there are many gray areas, the SHOOK team is willing to listen to a firm that is willing to stand behind the advisor with written support.
- Firms that provide a full client experience: Service model; investing process; fee structure; breadth of services (e.g., liabilities and other wealth management services)
- Credentials (years of service can serve as proxy)
- Use of team and team dynamics
- Community involvement
- Discussions with management, peers, competing peers
U4/Compliance Issues
The following conditions will be considered in order to lessen weightings infractions:
- Infractions that are denied or closed with no action
- Complaint arose from a product, service or advice initiated by a previous advisor or another member or former member of team
- Length of time since complaint
- Complaints related to product failure not related to investment advice (some limited partnerships, adjusted-rate securities, etc.)
- Complaints that have been settled (must be proven) to appease a client who remained with the advisor for at least one year following settlement date
- Complaints that are proven to be meritless
- Actions taken as a result of administrative error or failure by firm
Once an advisor's compliance rating falls into a tenable category, the following conditions must be met:
- An advisor's rating must be among SHOOK's highest qualitative measures including in-person interview
- Letters of recommendation
Awarded to Charles Bean, Heritage Financial’s Founder and Chairman. According to Forbes, those advisors that are considered have a minimum of seven years’ experience, and the algorithm weights factors like revenue trends, assets under management, compliance records, industry experience and those that encompass best practices and their approach to working with clients. Neither Forbes nor SHOOK receive a fee in exchange for rankings.
Basic Requirements
- 7 years as an advisor.
- Minimum 1 year at current firm, with exceptions (acquisitions, etc.).
- Advisor must be recommended, and nominated, by Firm.
- Completion of online survey.
- Business that is conducted with individuals is evaluated.
- Acceptable compliance record.
Quantitative
- Weightings assigned for both revenue and production data
- Assets under management—and quality of those assets—both custodied and a scrutinized look at assets held away (Although individual numbers are used for ranking purposes, we publish the entire team’s assets.)
- Client-related data, such as retention.
- Portfolio performance is not a factor; audited returns among advisors are rare, and differing client objectives provide varying returns.
Qualitative
- Telephone and in-person meetings with advisors (if an in-person meeting cannot be accomplished, exceptions are considered in which the interview will occur after a ranking has been published).
- Advisors that exhibit “best practices” within their practices and approach to working with clients.
- Compliance records & U4s. Some “dings” can be overlooked (e.g., firm or product failure beyond the scope of an advisor’s due diligence; the older a ding, the less we look). Since there are many gray areas, the SHOOK team is willing to listen to a Firm that is willing to stand behind the advisor with written support from leadership.
- Advisors that provide a full client experience:
- Service model
- Investing process
- Fee structure (higher % of fee-based assets earns more points)
- Breadth of services, including extensive use of Firm’s platform and resources (e.g., liabilities)
- Credentials (years of service can serve as proxy).
- Use of team & team dynamics
- Community involvement
- Discussions with management, peers, competing peers
- Telephone and in-person meetings
U4/Compliance Issues
The following conditions will be considered in order to lessen weightings infractions
- Infractions that are denied or closed with no action.
- Complaint arose from a product, service or advice initiated by a previous advisor or another member or former member of team.
- Length of time since complaint.
- Complaints related to product failure not related to investment advice (some limited partnerships, adjusted-rate securities, etc.).
- Complaints that have been settled (must be proven) to appease a client who remained with the advisor for at least one year following settlement date.
- Complaints that are proven to be meritless.
- Actions taken as a result of administrative error or failure by firm.
Once an advisor’s compliance rating falls into a tenable category, the following conditions must be met.
- An advisor’s rating must be among SHOOK’s highest qualitative measures including in-person interview.
- Letters of recommendation from firm.
