The Private Advisor Group is a network of more than 300 financial advisory practices across the country. The assets under all of their management total nearly $19.4 billion. The network has 677 advisors, most of whom are also broker representatives and insurance agents. The main office is in Morristown, New Jersey.
Private Advisor Group Background
After founding a practice together called Morristown Financial Group, Patrick Sullivan and John Hyland saw the need for a simple and seamless compliance solution for advisories like theirs. So they started Private Advisor Group, which provides a proprietary compliance technology program to other independent firms. Today, the co-founders are the principal owners and managing directors of the “firm of firms” - and serve as financial advisors, too.
What Types of Clients Does Private Advisor Group Accept?
Private Advisor Group works with clients who are and aren’t high-net-worth individuals, business entities, trusts, estates and charitable organizations.
Private Advisor Group Minimum Account Sizes
The firm generally has no minimum requirement, though certain programs may. For example, the Schwab Institutional Intelligent Portfolios (IIP) program, which has certain eligibility rules, requires a minimum $5,000 investment.
Services Offered by Private Advisor Group
The Private Advisor Group provides discretionary and non-discretionary investment management services on a wrap-fee or non-wrap-free basis. It also offers retirement plan consulting, insurance consulting and financial planning and related consulting services.
To investment clients, the firm offers access to a number of third-party asset management programs sponsored by the qualifying custodians it uses: LPL Financial, Fidelity, Schwab Wealth Investment Advisory and TD Ameritrade.
Private Advisor Group Investing Philosophy
When reviewing investments, the firm may apply charting, fundamental, technical and cyclical methods of analysis. Its investing strategies may include long-term purchases, short-term purchases and trading. Other investing strategies vary, depending on the advisor and investing program.
Fees Under Private Advisor Group
Like most, if not all, firms, Private Advisor Group collects management fees based on a percentage of the client’s assets under management (AUM). Fees for services on a non-wrap basis generally follow this schedule:
|Next $4 million||1.70%|
|Assets more than $5 million||Negotiable|
Fees for wrap fee programs range up to 2.25%, depending on various factors. Fees for third-party asset management programs vary, depending on the sponsor and program. It may be worth noting that though the third-party sponsor will deduct advisory fees from the client’s account, it will pass along part of the fees to the Private Advisor Group, who, in turn, gives 90% to 100% of its share to the advisor who made the referral.
PrivateAdvisor Group Awards and Recognition
The Financial Times named the Private Advisor Group as a Top 300 Financial Advisors list in 2019.
The firm was also on Barron’s Top Independent Advisory Firms list for 2018 and was a Wealthmanagement.com 2018 Industry Awards finalist.
What to Watch Out For
As noted earlier, most advisors are also insurance agents and broker representatives. So though they charge fees for their advisory services, they do receive commissions from third parties in their other roles. The firm notes, though, that clients are always free to buy advisors’ recommendations through other, non-affiliated brokers or insurance agents.
The Private Advisor Group reported two disclosures in its most recent SEC filings. They both involved advisory affiliates who work for LPL Financial. In one case, the advisor paid a $3,500 fine related to his insurance license. In the other, a client alleged an unsuitable exchange-traded fund was purchased in January 2010. The advisor was working for Morgan Stanley Smith Barney at the time and the complaint was denied.
Opening an Account With Private Advisor Group
To contact Private Advisor Group, call the main office at (973) 538-7010. Alternately, you can send a message on its site at http://pagadvisor.com/contact-us/.
Where Is Private Advisor Group Located?
The main office is located at 65 Madison Avenue, Suite 300, Morristown, New Jersey 07960.
All information was accurate as of the writing of this article.
Tips for Finding a Financial Advisor
- Interview advisor candidates in person - or at least over the phone. It’s the best way to get a sense of how comfortable he or she makes you feel. After all, few things are more personal than your finances and you don’t want to feel self-conscious talking about your goals and dreams to the person who is supposed to help you realize them.
- Use SmartAsset’s financial advisor matching tool. Simply answer questions about your financial situation and preferences, and the program will match you with up to three suitable advisors in your area.