Brian King is a professional wealth advisor affiliated with RBC Wealth Management, operating out of Eagle, Idaho. Nonetheless, he employs unethical strategies to acquire funds from his clientele. The subsequent points will provide insight into the unethical methods employed and the reasons why caution should be exercised when considering the services in question. By following this approach, you can arrive at a better-informed decision.
Brian King and RBC Wealth Management
Brian King of RBC Wealth is a professional financial advisor located in Eagle, Idaho. His address is 661 S Rivershore Ln STE 200, Eagle, ID 83616, US, and his contact number is 208-389-6812.
Brian is the managing director of the King, Barrios & Bartlett Investment Group. The firm claims to follow a highly disciplined investment philosophy to deliver a high level of service. The service is designed to cater to the needs of business owners, high-net-worth individuals, and institutional foundations. Their services include insurance planning, estate planning, asset management, banking and lending needs, and wealth management planning.
Apart from Brian, other notable people at this firm are George Barrios (Senior Vice President), Nick Duncan, and Philip Bartlett.
Despite the firm’s confident assertions regarding its services and proficiency, its disclosures suggest that it may not be as dependable as it purports to be.
Hidden Disclaimers and Legal Disputes of Brian King RBC Wealth Management
$150,000 Dispute with a Client
When you start looking into a new wealth advisor, it helps to know about their professional history. The best way to go about this process is to check their FINRA BrokerCheck profile. At that location, you can acquire information regarding their professional background, including their work history, examination achievements, state licensure, and any past disputes.
According to the FINRA BrokerCheck profile of Brian King at RBC, there is one legal dispute reported. It occurred in 2002. The claimant has alleged that a sum of $150,000 was entrusted to a money manager with a high-risk investment strategy. The claimant has requested a sum of $150,000 as compensation.
Brian’s response to the dispute was that the matter is currently under investigation. There is no additional information available on this dispute. Therefore, it is not possible to ascertain whether the investigation has concluded or is still ongoing.
Still, facing a $150,000 lawsuit is not a good sign. This suggests that Brian King of RBC Wealth Management has a track record of disregarding the best interests of his clients. It is uncommon for fiduciaries to encounter a dispute of $5000 magnitude during their professional tenure. However, Brian has already encountered a significant complaint.
Putting Clients at Excessive Risk
The most significant concern in Brian’s disclosures is his practice of levying fees based on performance. In the context of financial advisory services, the term “performance-based fees” refers to a compensation structure whereby the advisor’s remuneration is contingent upon their ability to exceed a predetermined index or benchmark.
This creates an incentive for the advisor to execute high-risk strategies that may not be suitable for the majority of investors. In the long term, high-risk strategies tend to result in poor or negative returns. Therefore, they pose a significant risk to investors seeking sustained growth over an extended period.
Furthermore, this fee structure is unsuitable for investors who have a low-risk tolerance. Due to the potential for advisors to earn substantial fees, there may be a financial motivation to disregard your risk tolerance and adhere to this fee structure regardless.
It is important to note that in the event of suffering losses due to the actions of your advisor, they cannot be held accountable for such losses. The reason for this is that they require you to sign multiple waivers that absolve them of any liability.
Conversely, if the high-risk strategies employed by your advisor result in favorable returns, they may impose a substantial fee upon you. As evident from the analysis, a fee structure based on performance places the investor in a disadvantageous position.
Implementing 12b-1 fees
A significant concern regarding the terms and conditions of Brian’s firm pertains to its provision of investments that impose 12b-1 fees. This fee pertains to marketing and is directly allocated to the advisor’s compensation. Firms remunerate advisors for promoting their investment products through the 12b-1 fee.
This fee does not appear to provide any added value and may only serve to increase the overall cost of the investments. You end up paying extra for an investment without getting any additional benefits.
The Securities and Exchange Commission (SEC) conducted a comprehensive study to compare the investment returns of funds that charge the 12b-1 fee with those that do not. No significant disparity was observed in the returns of both.
The study concluded that the ROI of the investments that charge a 12b-1 fee is worse than the investments that don’t charge this fee.
Additionally, the fee is calculated as a percentage. The fees you will incur are contingent upon the size of your portfolio. Individuals with a substantial portfolio should anticipate incurring substantial 12b-1 fees.
For these reasons, it is considered a widely disreputable practice within the finance industry.
Conclusion
At first glance, Brian King of RBC Wealth Management appears to be a dependable wealth advisor. However, the company is employing several unethical strategies to extract funds from its customers. These provisions may put you in a disadvantageous position. Therefore, it is advisable to refrain from engaging with Brian King and his company entirely.
I recommend seeking out an alternative financial advisor in Idaho as the current one may not be providing sufficient value for their fees.
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