Klingenstein Fields Advisors (KF Advisors) takes pride in being an independently owned Securities and Exchange Commission (SEC) registered investment adviser (RIA) operating under the stringent rules of the Investment Advisers Act of 1940 (“the Advisers Act”) and the guidance of the SEC. We are committed to our fundamental obligation of undivided loyalty and good faith to our clients and to providing investment advice in our clients’ best interests.
We believe an important element of fulfilling our duty as a fiduciary is to provide our clients with timely and accurate reporting on their assets. Periodic statements from KF Advisors, that we urge you to compare to those provided by your qualified custodian, help to keep you informed. As a client, you also have daily access to your account information, as well as to your quarterly statements, via your custodian website and our client portal.
As part of a system of checks and balances put in place to protect your wealth from theft, loss, misuse and/or misappropriation, rule 206(4)-2, the “custody rule” under the Advisers Act, requires that, among other things, annual surprise examinations of RIAs deemed to have custody of client assets be conducted by an independent public accountant. These examinations verify the existence of funds and securities, proper ownership records, and the alignment of holding amounts at the custodian with our own records, as well as assess compliance with other elements of the “custody rule” and related requirements under rule 204-2, the Advisers Act “recordkeeping rule”. This stringent oversight enhances the security and integrity of your funds and client records.
We take our responsibility and duties as a fiduciary with the utmost seriousness and willingly engage in measures aimed at protecting your assets. In addition, in adherence with SEC requirements, we undergo surprise custody examinations each year. During these examinations, our outside auditors independently select specific clients records and a specific point in time for examination. If selected, the independent audit firm contacts you directly to verify that our financial records and reports accurately reflect your funds and securities, including, for example, your contributions and withdrawals during the examination period. To facilitate your review and response, we provide the auditors with statements to include in their communications with you. While this demands considerable effort on our part, we are committed to ensuring a seamless process for your response and try to minimize any inconvenience to you.
We truly appreciate your cooperation and your trust in us. We look forward to helping you and your family achieve their financial goals now and in the future. As always, we are here to answer any question or address any concerns you may have at 212.492.7000 or firstname.lastname@example.org.