Description of Firm
K.J. Harrison & Partners (USA) Inc. ("KJH-USA") is an independent investment advisory firm based in
Toronto, Ontario that serves select individuals and families. KJH-USA is a wholly-owned subsidiary of
Harrison & Partners Holdings Inc. and is affiliated with K.J. Harrison & Partners Inc., a Canadian
investment dealer regulated by the Investment Industry Regulatory Organization of Canada
("IIROC"). KJH-USA was founded in 2015, however, K.J. Harrison & Partners Inc. was founded in 2001
by K. James Harrison.
The following paragraphs describe our services and fees. Please refer to the description of each
investment advisory service listed below for information on how we tailor our advisory services to your
individual needs. As used in this brochure, the words "we," "our," and "us" refer to K.J. Harrison &
Partners (USA) Inc. and the words "you," "your," and "client" refer to you as either a client or
prospective client of our firm. KJH-USA offers investment advice with the assistance of its Investment
Adviser Representatives (IARs).
Wealth Management Services
Our firm offers strategic wealth management services where we manage our clients' investments
within the larger context of the client's overall wealth management and financial planning process.
Wealth management services consist of ongoing financial advice and discretionary investment
management services where our investment advice is tailored to meet our clients' individual needs and
investment objectives. These services include an initial consultation along with follow up consultations,
as may be agreed, to discuss your unique investment objectives, time horizon, risk tolerance, tax
circumstances, and various other financial factors. We will ask that you complete certain account
opening documents to assist us in gathering information about your financial needs and
circumstances.
Based on our evaluation of the foregoing factors, we will use the information we gather to develop a
strategy that enables our firm to give you continuous and focused investment advice and to make
investments on your behalf. Once we construct an investment portfolio for you, we will monitor your
portfolio's performance on an ongoing basis, and will rebalance the portfolio as required by changes in
market conditions and/or in your financial circumstances. Clients are required to notify our firm
immediately if their financial circumstances and/or investment objectives change from what has
already been disclosed to our firm.
In order to provide discretionary portfolio management services, we require you to grant our firm
discretionary authority to manage your account. Discretionary authorization will allow us to determine
the specific securities, and the amount of securities, to be purchased or
sold for your account without
your approval prior to each transaction. Please see Item 16 (Investment Discretion) of this Disclosure
Brochure for more information on the management authority we offer under our wealth management
services.
As part of our wealth management services, we generally provide clients with ongoing consulting and
financial planning services. In some instances, our financial planning recommendations may be
delivered to clients in the form of a written plan. The wealth management process varies for each client
as it is based on the client's individual financial circumstances.
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Types of Investments
We primarily offer advice on equity securities, debt securities, mutual funds, and exchange traded
funds (ETFs). Additionally, we may advise you on various types of investments based on your stated
goals and objectives. We may also provide advice on any type of investment held in your portfolio at
the inception of our advisory relationship.
IRA Rollover Recommendations
For purposes of complying with the DOL's Prohibited Transaction Exemption 2020-02 ("PTE 2020-02")
where applicable, we are providing the following acknowledgment to you.
When we provide investment advice to you regarding your retirement plan account or individual
retirement account, we are fiduciaries within the meaning of Title I of the Employee Retirement Income
Security Act and/or the Internal Revenue Code, as applicable, which are laws governing retirement
accounts. The way we make money creates some conflicts with your interests, so we operate under a
special rule that requires us to act in your best interest and not put our interest ahead of yours. Under
this special rule's provisions, we must:
• Meet a professional standard of care when making investment recommendations (give
prudent advice);
• Never put our financial interests ahead of yours when making recommendations (give
loyal advice);
• Avoid misleading statements about conflicts of interest, fees, and investments;
• Follow policies and procedures designed to ensure that we give advice that is in your best
interest;
• Charge no more than is reasonable for our services; and
• Give you basic information about conflicts of interest.
We benefit financially from the rollover of your assets from a retirement account to an account that we
manage or provide investment advice, because the assets increase our assets under management
and, in turn, our advisory fees. As a fiduciary, we only recommend a rollover when we believe it is in
your best interest.
Assets Under Management
As of December 31, 2022, we provide continuous management services for $14,229,000 in client
assets on a discretionary basis.