Citizens Investment Services is a financial advisor with headquarters in Johnston, Rhode Island. The firm (whose legal name is Citizens Securities, Inc.) is the main investment arm of Citizens Bank, one of the largest financial institutions in the U.S.
The firm has a large team of financial advisors who currently manage assets for a client base that consists almost entirely of individuals below the high-net-worth threshold.
Certain advisors at Citizens Investment Services may earn additional compensation for the sale of specific securities to clients, which makes it a fee-based firm. That's different from a fee-only firm, which avoids conflicts of interest by only collecting fees only from clients.
Citizens Securities Background
Citizens Investment Services was established in 1995, but it registered with the U.S. Securities and Exchange Commission (SEC) as an investment advisor in 2003. The firm is owned by Citizens Bank, N.A., and its parent company, Citizens Financial Group, Inc. Bruce Van Saun serves as chairman and CEO of Citizens Financial Group.
Citizens Securities Client Types and Minimum Account Sizes
Citizens Investment Services works mainly with non-high-net-worth individuals. The firm also maintains advisory relationships with a number of businesses, as well as a handful of high-net-worth individuals. The firm says that its advisors can also work with trusts, estates, Taft-Hartley plans, non-profits and more.
Minimum account size requirements vary across the firm's numerous advisory offerings. For example, the firm generally requires $100,000 for unified managed accounts (UMAs) offered within the firm's Citizens Integrated Portfolios program, although individual manager minimums may range from $10,000 to $500,000. For the firm's Citizens Advisory Connect program, the minimum account size is $2,000. Citizens Investment Services also offers a digital advice platform, which also requires a minimum investment of $2,000.
Services Offered by Citizens Securities
Citizens Investment Services offers investment and portfolio management services through its three main offerings: Citizens Advisory Solutions Managed Account Program, the Citizens Advisory Connect Program and the Citizens Digital Advice Program. Here's a breakdown of each:
- Citizens Advisory Solutions Managed Account Program
- Integrated Portfolios
- Unified managed account (UMA) program with access to a diversified portfolio of mutual funds, ETFs, separately managed accounts (SMAs), exchange-traded funds (ETFs) and fund strategist portfolios.
- The Private Wealth Portfolios offering within the Integrated Portfolios program comprises model portfolios that correspond with a client's risk tolerance.
- Integrated Portfolios
- Citizens Advisory Connect Program
- Discretionary investment management provided by one or more unaffiliated investment managers.
- Electronic communication with financial advisors through the Citizens Bank website
- Citizens Digital Advice Program
- Robo-advisor services offered through SigFig Wealth Management
- Risk-adjusted model portfolios
- Tax-loss harvesting features
Citizens Securities Investing Philosophy
Citizens Investment Services offers many investment strategies through third-party managers and in-house mutual funds, so there is no overarching investment philosophy that the firm adheres to. Accounts also vary in the range of securities used in portfolios.
Many of the firm's programs utilize computer-based investment research, along with analytical data, to help inform their final investment decisions. Since Citizens Investment Services uses a variety of advisors and third-party managers for investment accounts, each client will be informed of the specific investment philosophy on a case-by-case basis.
Citizens Securities Services Fees
Citizens Investment Services charges a wide range of fees depending on the program you subscribe to and your overall assets under management (AUM). The fees noted below do not include any applicable sub-manager fees. Fees are calculated and paid on a quarterly basis. Some fees are negotiable.
| Citizens Integrated Portfolios Unified Managed Account Fees | |
| Total AUM | Annual Fee |
| First $250K | 1.41% |
| Next $250K | 1.26% |
| Next $500K | 1.11% |
| Next $1MM | 1.06% |
| Next $3MM | 1.01% |
| $5MM and up | 0.96% |
| Citizens Advisory Connect Fees | |
| Total AUM | Annual Fee |
| First $250K | 1.35% |
| Next $250K | 1.25% |
| Next $500K | 1.13% |
| Next $1MM | 1.08% |
| Next $3MM | 1.03% |
| $5MM and up | 0.98% |
Meanwhile, the firm charges a fee of 0.50% of assets under management for its Digital Advisory Program.
What to Watch Out For
Citizens Investment Services has a total of 21 disclosures listed on its Form ADV related to the firm itself and advisory affiliates.
Also, keep in mind that the firm has several conflicts of interest related to additional compensation that it or its advisors receive for recommendations that are made. While advisors may earn additional compensation on the sale of securities, the firm itself receives 12b-1 fees from mutual funds. Both can incentivize the firm or advisors to recommend certain products and services based on the compensation they'll receive for those recommendations, instead of the client's needs. However, the firm is a fiduciary and must act in your best interests.
Opening an Account With Citizens Securities
To open an account with Citizens Investment Services, go to the firm's website and navigate to the Investing and Wealth Management section. Then, click on the "Find an Advisor" button. Or you can call the firm directly at 1-833-373-1955.
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