Disclosure – About the 5 Star Wealth Manager Award

Phoenix Magazine and 5 Star Professional partnered to find wealth managers who satisfy 10 objective eligibility and evaluation criteria. Among many distinguishing attributes, the average one-year retention rate for 2017’s award winners was in excess of 96%. Although the list is a useful tool for anyone looking for help in managing their financial world or implementing aspects of their financial strategy, it should not be considered exhaustive. Award candidates are identified from three sources: firm nomination, peer nomination, or pre-qualification based on industry standing. Phoenix candidates were identified using internal and external research data. For more information on the 5 Star Award and selection methodology, go to www.fivestarprofessional.com

Research Disclosures

  • Wealth managers do not pay a fee to be considered or to be placed on the final list of 5 Star Wealth Managers.
  • The 5 Star award is not indicative of a wealth manager’s future performance.
  • Wealth managers may or may not use discretion in their practice.
  • The inclusion of a wealth manager on the list is not an endorsement by Phoenix Magazine or 5 Star Professional
  • Working with a 5 Star Wealth Manager or any wealth manager is no guarantee of investment success, nor is there any guarantee that selected wealth managers will be awarded this accomplishment in the future.
  • 5 Star Professional is not an advisory firm, and the content of their article is not considered investment advice.
  • 1,335 award candidates in the Phoenix area were considered for the 2017 award and 135 (10%) were named 2017 5 Star Wealth Managers.

5 Star Wealth Manager Criteria

Eligibility Criteria – Required

  1. Credentialed as a Registered Investment Advisor or a Registered Investment Advisor Representative
  2. Actively employed as a credentialed professional in the financial services industry for a minimum of 5 years
  3. Favorable regulatory and compliance history.
  4. Firm review based on internal firm standards
  5. Accepting new clients

Evaluation Criteria – Considered

  1. One-year client retention rate
  2. Five-year client retention rate
  3. Non-institutional discretionary or non-discretionary client assets administered
  4. Number of client households served
  5. Educational and professional designations

Regulatory Review

As defined by 5 Star Professional, the wealth manager has not:

  • Been subject to a regulatory action that has resulted in a license being suspended/revoked or payment of a fine.
  • Had more than three customer complaints filed against them (settled or pending) with any regulatory authority of 5 Star Professional’s consumer complaint process.
  • Individually contributed to a financial settlement of a customer complaint filed with a regulatory agency
  • Filed for personal bankruptcy.
  • Been convicted of a felony.

5 Star Professional conducts a regulatory review of each nominated wealth advisor using the Investment Advisor Public Disclosure website. 5 Star Professional also uses multiple supporting processes:

  • Each wealth manager who passes the 5 Star Professional regulatory review must attest that they meet the definition of favorable regulatory history based on the above criteria.
  • 5 Star Professional promotes via local advertising the opportunity for consumers to confidentially submit complaints regarding a wealth manager.
  • 5 Star Professional contacted approximately 1 in 12 households identified or having a high propensity to use the services of a wealth manager in order to provide consumers the opportunity to submit complaints regarding a wealth manager.