Santander Securities (also known as Santander Investment Services), is a financial advisor firm that works with thousands of clients. Altogether, this client base holds billions of dollars in investable assets. While the firm is heavily focused on general investing services, a variety of financial planning offerings are also available. Headquartered in Dorchester, Massachusetts, Santander Securities has branches and advisors throughout the Northeastern U.S., as well as in Florida.
Santander Securities is a fee-based firm, meaning advisors may earn commissions in addition to advisory fees that clients pay. These commissions come from the sale of certain insurance products and the trading of specific securities. This is different from a fee-only firm, which earns income exclusively from advisory fees.
Santander Securities Background
Santander Securities was established in 1996, though it has only been registered with the U.S. Securities & Exchange Commission (SEC) since 1999. The firm is a subsidiary of Santander Holdings USA, Inc., the same holding company that owns Santander Bank, a well-known banking institution that primarily operates in New England, the Mid-Atlantic and the Northeast at large.
The staff at this firm includes chartered financial analysts (CFAs), certified anti-money laundering specialists (CAMSs) and certified financial planners (CFPs).
Santander Securities Client Types and Minimum Account Sizes
Santander Securities advises a range of different clients, though most of its client base is comprised of individuals below the high-net-worth threshold. Other clients the firm commonly works with include charitable organizations, corporations and trusts.
Many of Santander Securities' services do not have an associated minimum, but some do. They go as follows:
- CLS Unified Managed Account Program: $25,000
- Fund Strategist Programs: $50,000
- Separately managed accounts (SMAs): $250,000
- Digital Advice Program: $2,000
Services Offered by Santander Securities
Santander Securities furnishes clients with various advisory services, including financial planning services and wrap fee investment management programs. The firm's financial planning services involve:
- Cash flow analysis
- Budget planning
- Insurance needs analysis
- Asset allocation planning
- College fund planning
- Retirement planning
- Estate planning
- Accumulation planning
The multitude of investment management programs available through Santander Securities are technically provided through third-party firms, including 12 mutual fund-centric programs that are sponsored by Envestnet Asset Management, Inc. Also available through the firm are SMAs and unified managed accounts (UMAs).
Santander Securities Investment Philosophy
When making recommendations as to which programs are best suited for a particular client, Santander Securities' advisors will take many factors into account. In fact, the firm prioritizes each client’s short- and long-term financial objectives and risk tolerance. It will then create an asset allocation plan that focuses on sustainable growth to determine which program is appropriate.
As your portfolio ages, Envestnet will continually review how your investments are performing. If it determines it to be necessary, the firm may also rebalance your portfolio to fit the originally intended asset allocation. Security selection generally varies by program, but there appears to be a focus on mutual funds.
Fees Under Santander Securities
Santander Securities clients participating in wrap-fee investment management programs via Envestnet will generally pay a percentage of their assets under management (AUM). The exact percentage you'll pay varies from 0.87% to 1.67%. What rate you receive will depend on the size of your account, the investment strategy you choose and the nature of the services you require.
If you are a client of Santander Securities, you won't need to pay anything extra to take advantage of its financial planning offerings.
What to Watch Out For
Based on the information in its SEC-filed Form ADV, Santander Securities has 20 disclosures on its legal and regulatory record. Some of these disclosures apply to advisory affiliates of the firm, while others apply to the firm itself.
As we mention above, Santander Securities is a fee-based firm, as certain advisors may earn commissions for selling certain mutual fund shares in their separate capacity as a registered representative of a securities broker-dealer. In addition, some advisors may sell certain insurance products on a commission basis. While this incentive represents a conflict of interest, Santander Securities is a fiduciary and therefore has a legal obligation to act in your best interest at all times.
Opening an Account With Santander Securities
If you’d like to get in touch with an advisor at Santander Securities, there are two primary ways to do so. You can either call the firm’s toll-free number at (866) 736-6475, or you can visit the firm’s website to find a Santander advisor near you.
All information is accurate as of the writing of this article.
Tips to Improve Your Investments
- Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Don't forget that investment gains are subject to taxation. SmartAsset’s capital gains tax calculator can help you figure out exactly what you can expect Uncle Sam to take.
