Account Operations & Reports

• Q. Is Schwab Institutional the only custodian available to clients ?
  • A. No, but they are the primary custodian. Schwab Institutional is the institutional investment arm of Charles Schwab & Co. They act as a custodian for most of our Clients’ assets, which means they hold securities and cash and facilitate trading activities. Chicago Partners Investment Group LLC has selected Schwab Institutional as custodian because of their commitment to client service, low trading cost, and a dedication to operational efficiency. Our management fees are kept low because of the operation efficiency created by having only one primary custodian.
• Q. Is Chicago Partners Investment Group LLC affiliated with Charles Schwab Institutional?
  • A. No. Chicago Partners is not affiliated with Charles Schwab Institutional or their parent company, nor are we compensated by that company in any way through fees, commission, or incentives. In the spirit of full disclosure, our firm is supplied necessary software that allows our in-house portfolio management system to work efficiently and cleanly with Schwab’s back-office operations and trading desks. The same software is available to all investment advisors that custody at Schwab.
• Q. Do I have to go to a Schwab office to open an account?
  • A. No. There is no reason to visit a Schwab office or to open Schwab accounts yourself. You will be signing Schwab Institutional paperwork that we will send to you. If there is a Schwab office nearby, you may go there to deposit checks rather than mailing money to Schwab. That would reduce the time it takes to put checks into your account.
• Q. Will I have Internet access to my account?
  • A. Yes. Free Internet access is available to Clients through a special Schwab website 24 hours per day, 7 days per week. The website also is the source for immediate information on account activity and provides you with many reports including year-end tax information.
• Q. How often do I receive statements and reports?
  • A. Charles Schwab sends monthly statements to all clients for all accounts. These statements show account balances, trades, cash flows, and unrealized gains. Statements are available in paper as well as through email. In addition, Chicago Partners will send a detailed performance report each quarter that compare your portfolio’s performance to a series of relevant market indexes.
• Q. Will I receive reports that will help with tax preparation?
  • A. At the end of each year, Charles Schwab will send 1099’s to each client that has a taxable account. In addition, a realized gain/loss statement is available on-line from Schwab, as well as Chicago Partners. We suggest that Clients use our realized gain and loss reports because we report sales by tax-lot, which is the most tax efficient accounting method.
• Q. Is there a cost to terminate the agreement if I am not satisfied with your services?
  • A. No, either party can terminate the Agreement at any time and for any reason. There are no termination charges. A final invoice will be created based on the number of days during the current quarter that the account was under management.

Insurance & Other Matters

• Q. Does anyone at Chicago Partners Investment Group LLC have access to my money?
  • A. No one at Chicago Partners Investment Group LLC has access to the money in your account. We have limited power of attorney to do three things in a Client account; 1) trade securities with discretion, 2) request that Schwab send a check to a Client directly or to a Client’s bank, and 3) to be paid a quarterly management fee based on the Client contract. We have no other access or authority.
• Q. Are my accounts insured from theft, fraud, errors, omissions and insolvency?
  • A. All accounts are insured on multiple levels. Charles Schwab Institutional coverage is extensive and is explained in a public brochure that is available to all investors. Chicago Partners also carries Errors and Omissions insurance.
• Q. How is my privacy protected?
  • A. Chicago Partners Investment Group LLC complies with all privacy laws affecting financial institutions. Each year our clients receive a Privacy Statement that outlines this responsibility in detail. Those standards are reviewed regularly to ensure they cover all forms of communication. Briefly, we will not release any information to any person who is not directly named on your account unless we have your permission to do so, with the exception of legal and regulatory authorities.
• Q. What does it mean to be a Registered Investment Advisor (RIA)?
  • A. Chicago Partners Investment Group, LLC is a SEC registered advisory firm. All professional investment management companies are required to register with the U.S. Securities and Exchange Commission (SEC) and/or the State(s) in which the firm conducts business activities. That registration is called an ADV, and it is available in two parts. ADV Part I is basic information about the advisory business and ADV Part II explains our services and fees.
• Q. How does an RIA differ from a brokerage firm?
  • A. RIAs are in the investment management business and we are regulated by the Investment Advisors Act of 1940. In contrast, brokerage firms are primarily in the financial product sales and distribution business and they are regulated by the Securities Act of 1933 as well as other laws. As a RIA under the 1940 Act, we have a higher level of fiduciary responsibility than brokerage firms. We are required by law to work in our client’s best interest. Our fee is based on assets under management (AIM) rather than the brokerage model that is tied to the sale and distribution of financial products.
• Q. What ethical standards does Chicago Partners Investment Group LLC adhere to?
  • A. All personnel including management personnel are required to sign an Annual Ethics Statement that outlines our ethical standards. Everyone at Chicago Partners adheres to that strict ethical code as part of our daily operations.