About Delta Advisory Group, Inc. (“DAG”)
DAG is a Florida corporation founded in 1996. DAG is an investment adviser registered
with the Securities & Exchange Commission (“SEC”) with its home office located at 696
North Maitland Avenue, Maitland, Florida, 32751. DAG maintains a branch office at 698
North Maitland Avenue Suite 201, Maitland, Florida 32751.
Please note that the words “we,” “us,” and “our” may be used to refer to DAG throughout
this brochure, as the context may require. Furthermore, the words “you,” “your,” and
“Client” may be used to refer to you as either a client or a prospective client of DAG, as
the context may require.
DAG’s principal shareholder (i.e., those individuals and/or entities controlling 25% or more
of this company) is:
• Clarence – Pelton, LTD
Advisory Services Offered
Prior to forming an investment advisor-client relationship, DAG may offer a complimentary
general consultation to prospective Clients to discuss the nature of its service offerings
and to determine the possibility of a potential advisory relationship. Investment advisory
services begin only after the prospective Client and DAG formalize their relationship with
a properly executed written advisory agreement.
Portfolio Management
DAG provides continuous advice to a Client regarding the investment of Client funds and
non-continuous asset management of Client funds based on individual needs of the
Client. Through personal discussions and the data gathering process, the Client’s goals
and objectives based on a his/her particular circumstances are established to determine
the appropriate manner in which to manage the Client’s portfolio. During our data
gathering process, we determine the Client’s individual objectives, time horizons, risk
tolerance, and liquidity needs. As appropriate, we also review and discuss a client’s prior
investment history, as well as family composition and background.
DAG manages these advisory accounts on a discretionary basis. Account supervision is
guided by the client’s stated objectives and tax considerations. Clients may impose
reasonable restrictions on investing in certain securities, types of securities, or industry
sectors.
DAG’s investment recommendations are not limited to any specific product or service
offered by a broker/dealer or insurance company. Because some types of investments
involve certain additional degrees of risk, they will only be implemented or recommended
when consistent with the Client’s stated investment objectives, tolerance for risk, liquidity,
and suitability.
Selection of Broker by DAG
As a condition of participation in most services with DAG, Clients are generally required
to maintain their brokerage account(s) at Charles Schwab & Co. Inc. (“Schwab”).
Financial Planning Services
DAG provides financial planning services. Financial planning is a comprehensive
evaluation of a Client’s current and future financial state by using currently known
variables to predict the future cash flows, asset values, and withdrawal plans. Through
the financial planning process, all questions, information, and analysis are considered as
they impact and are impacted by the entire financial and life situation of the Client. Clients
purchasing this service receive a written report which provides the Client with a detailed
financial plan designed to assist the Client in achieving his/her financial objectives.
Generally, the financial plan addresses any or all of the following areas: personal
situations, tax and cash flow, investments, insurance, retirement, death and disability, and
estate. DAG gathers required information through written information and documentation
provided by the Client, as well as in-depth personal interviews. The information gathered
includes the Client’s current financial status, tax status, future goals, return objectives,
and attitudes towards risk. Should the Client choose to implement the recommendations
contained in the plan, we will suggest the Client work closely with his/her attorney,
accountant, insurance agent, and/or stockbroker.
Implementation of the financial plan
recommendations is entirely at the Client’s discretion.
DAG also provides general non-securities advice on topics that may include tax and
budgetary planning, estate planning, and business planning.
Typically, the financial plan is presented to the Client within six months of the contract
date, provided that all information needed to prepare the financial plan has been promptly
provided.
Financial planning recommendations are not limited to any specific product or service
offered by a broker/dealer or insurance company.
Consulting
There are situations in which a DAG investment advisor provides advice on specific topics
not involving a comprehensive financial plan. Often, these situations are associated with
events such as divorce, death, retirement, or a child entering college.
Newsletters
DAG provides Clients with newsletters sent monthly that include updates and investment-
related advice.
Client Tailored Services and Client Imposed Restrictions
DAG will tailor services for each individual Client based on industry standards and
information gathered from Client suitability forms such as the Risk Tolerance
Questionnaire and the Client Profile. Clients may impose restrictions in receiving
recommendations for investing in certain securities or types of securities in accordance
with their values or beliefs. However, if the restrictions prevent DAG from making proper
recommendations for the Client account, DAG reserves the right to end the relationship.
IRA Rollover Considerations & Recommendations
As part of our investment advisory services to you, we may recommend that you withdraw
the assets from your employer's retirement plan and roll the assets over to an individual
retirement account (IRA) that we will manage on your behalf. If you elect to roll the assets
to an IRA that is subject to our management, we will charge you an asset-based fee as
set forth in the agreement you executed with our firm. This practice presents a conflict of
interest because persons providing investment advice on our behalf have an incentive to
recommend a rollover to you for the purpose of generating fee-based compensation
rather than solely based on your needs. You are under no obligation, contractually or
otherwise, to complete the rollover. Moreover, if you do complete the rollover, you are
under no obligation to have the assets in an IRA managed by our firm.
We comply with the Department of Labor (“DOL”) Prohibited Transaction Exemption
2020-02 (“PTE 2020-02”) where applicable. Our firm is providing the following additional
acknowledgment:
When the Adviser provides investment advice to individuals regarding a retirement plan
account or individual retirement account, the firm is deemed a fiduciary 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
the Adviser makes money creates potential conflicts with a client’s interest. Therefore,
the Adviser, operates under a special rule which requires the firm to act in a client’s best
interest and not put the Adviser’s interest ahead of the client. Under this special rule’s
provisions, the Adviser must:
• Meet a professional standard of care when making investment recommendations
(give prudent advice);
• Never put the Adviser’s financial interests ahead of a client when making
recommendations (give loyal advice);
• Avoid misleading statements about conflicts of interest, fees and investments;
• Follow policies and procedures designed to ensure advice given is in the client’s
best interest;
• Charge no more than is reasonable for services; and • Provide basic information
about conflicts of interest.
Client Assets Under Management
As of December 31, 2023, DAG provides continuous management services for
$174,000,000 in client assets for 446 clients on a discretionary basis. DAG does not
currently provide any non-discretionary portfolio management.