If you need financial advice, you should stay far away from Greenwich Wealth Management. At first glance, the company appears honest and trustworthy; nonetheless, it employs several dishonest practices to extract money from its customers.
Its founder has been penalized by authorities several times for various acts of recklessness and indifference. In addition, the company’s agreements contain several sneaky clauses that can have serious consequences for your financial development.
Reading this Greenwich Wealth Management evaluation is a good first step if you’re thinking about hiring them.
Greenwich Wealth Management: A Brief History
Located in the heart of Greenwich, Connecticut is the financial advising firm Greenwich Wealth Management. You may reach them at (203) 618-0103 or visit them at 45 E Putnam Ave #128, Greenwich, CT 06830, USA.
Managing Director Daniel Sullivan and Co-Founder Michael Freeburg established this company. Vahan Janjigian, the Chief Investment Officer, and Harry Figgie, the Director and Wealth Advisor, are two more important employees.
The company says it works with wealthy people, their families, nonprofits, businesses, endowments, and trusts to create and oversee individualized investment strategies. High-net-worth individuals, families, trusts, and businesses can take advantage of Greenwich Wealth Management’s investment management and monitoring service for third parties.
Although the company says it cares about each client as a person, its disclosures suggest otherwise.
Greenwich Wealth Management’s disclosures highlight multiple potential conflicts of interest, making it difficult to put any faith in the advice provided by the firm’s advisors. When the company takes on more risk with its clients’ money than is strictly necessary, for instance, it profits. This is discussed further in the review’s next section.
Greenwich Wealth Management: Warning Signs
Dubious Authority in Position
You should look up your prospective financial advisor in the FINRA BrokerCheck database before signing on with them. You may learn more about their educational background, employment history, years in the workforce, and any professional problems they may have had.
Michael Freeburg, Greenwich Wealth Management’s founder, and principal, has a sketchy past. His FINRA BrokerCheck report lists 4 complaints against him. In addition, Michael has been found guilty in all four of these conflicts, which are regulatory actions.
The Initial Step in Michael Freeburg’s Regulatory Process
The first regulatory action taken against Michael occurred in 1987, and Commodity Exchange Inc started it. He was involved in a fight with two other Commodity Exchange employees.
The regulatory body penalized him with a $25,000 fine and a two-week trading ban.
Michael Freeburg Faces His Second Round of Regulations
The second regulatory action taken against Michael began in 1991 when Commodity Exchange Inc. Here, he had to fork out $250 since he didn’t take reasonable precautions to guarantee that the exchange received accurate deal execution times.
The Third Administrative Measure Against Michael Freeburg
For unclear reasons, Michael was fined by the Commodity Futures Trading Commission in 1992. Freeburg paid the fine and agreed to a one-year conditional registration to resolve the administrative process.
The administrative penalty for this activity was a year of restricted registration.
No further details regarding this administrative action are available.
Michael Freeburg faces his fourth regulatory action
In 1997, Michael was hit with disciplinary action by Commodity Exchange Inc. for the fourth time. A fine was paid after an “unintentional prohibited bid” accusation was found to be true.
Once again, we have no details on the regulatory action taken against him or the amount of the fine he paid.
Michael Freeburg gave up being a broker after being the subject of numerous regulatory proceedings. This allows him to attract new customers without disclosing his extensive history of governmental scrutiny.
This is not a stellar performance history. This reflects poorly on Greenwich Wealth Management’s founder’s professionalism and attention to detail. In addition, his company’s terms and conditions contain several questionable clauses that make it more difficult to put much stock in their suggestions.
Investing in Suggested Stocks
Greenwich Wealth Management’s ability to trade the investments it suggests to clients is a major downside of partnering with the firm. That doesn’t imply they make the moves they suggest. Instead, it implies that they can use your money (and the money of other clients) to artificially boost the performance of a select group of stocks.
One of the most pressing concerns for private wealth management businesses is the practice of trading advised investments. In addition, Greenwich Wealth Management requires a minimum portfolio size of $1 million. They have enough clients (100+) that any modifications they make to the performance of specific assets will have a visible impact on their profitability.
Advisors typically make trades in the security before advising their customers to buy or sell. It’s known as front-running, and it’s one of the most dishonest and infamous tactics used by financiers.
Advisors can take advantage of their clients by trading advised securities with their own money. This is bad news for all investors, especially those with valuable holdings.
Adding on Unexpected Costs
Advisors can further confuse matters by suggesting assets with 12b-1 fees, another grey area. Companies pay advisors a marketing charge in exchange for recommending their investment products to their clients.
The size of the 12b-1 charge is proportional to the value of your portfolio because it is calculated as a percentage. It also allows the advisor to charge you hidden fees, which will increase your overall investment costs over time.
Conclusion
When it comes to your money, do not trust Greenwich Wealth Management. Therefore, you should check into alternative Greenwich wealth management organizations, as this one does not appear to prioritize the success or safety of its clientele.
You don’t have to stick with this firm, as there are many others to choose from in the wealth management market.
You may also read- https://www.repdigger.com/trailhead-retirement-planning-group-morgan-stanley/
