Description of Advisory Services
The following are descriptions of the primary advisory services of Richardson Wealth (USA) Limited (RW (USA)). Please
understand that a written agreement, which details the exact terms of the service, must be signed by you and RW (USA)
before we can provide you the services described below.
Investment Management Services – RW (USA) offers asset management services, which involves RW (USA)
providing you with continuous and ongoing supervision over your specified accounts.
You must appoint our firm as your investment adviser of record on specified accounts (collectively, the “Account”). The
Account consists only of separate account(s) held by qualified custodian(s) under your name. The qualified custodians
maintain physical custody of all funds and securities of the Account, and you retain all rights of ownership (e.g., right to
withdraw securities or cash, exercise or delegate proxy voting and receive transaction confirmations) of the Account.
The Account is managed by us based on your financial situation, investment objectives and risk tolerance. We actively
monitor the Account and provide advice regarding buying, selling, reinvesting or holding securities, cash or other
investments of the Account.
We will need to obtain certain information from you to determine your financial situation and investment objectives. You
will be responsible for notifying us of any updates regarding your financial situation, risk tolerance or investment
objective and whether you wish to impose or modify existing investment restrictions; however we will contact you at
least annually to discuss any changes or updates regarding your financial situation, risk tolerance or investment
objectives. We are always reasonably available to consult with you relative to the status of your Account. You have the
ability to impose reasonable restrictions on the management of your accounts, including the ability to instruct us not to
purchase certain securities.
It is important that you understand that we manage investments for other clients and may give them advice or take
actions for them or for our personal accounts that is different from the advice we provide to you or actions taken for you.
We are not obligated to buy, sell or recommend to you any security or other investment that we may buy, sell or
recommend for any other clients or for our own accounts.
Conflicts may arise in the allocation of investment opportunities among accounts that we manage. We strive to allocate
investment opportunities believed to be appropriate for your account(s) and other accounts advised by our firm among
such accounts equitably and consistent with the best interests of all accounts involved. However, there can be no
assurance that a particular investment opportunity that comes to our attention will be allocated in any particular manner.
If we obtain material, non-public information about a security or its issuer that we may not lawfully use or disclose, we
have absolutely no obligation to disclose the information to any client or use it for any client’s benefit.
Separately Managed Account (SMA):
RW (USA) has entered into an agreement with third-party platform providers (referred to as Platform Manager) through
which we are able to provide Managed Account Services. The Platform Manager for these services will conduct due
diligence of any recommended Model Provider and monitor the performance of Model Provider with respect to the
Model Provider’s models and/or trade signals relative to appropriate peers and/or benchmarks.
Upon appointment as an investment adviser of the Account, the assigned Advisor of RW (USA) will review the
information you provide and make recommendations to you to utilize Select Portfolios or Model Providers to provide
models for managing the Account or a portion of the assets of Account. The Advisor of RW (USA) is only able to
recommend Select Portfolios or Model Providers which have been approved by Platform Manager and RW (USA).
Therefore, we have a conflict of interest because we do not recommend Model Providers to you if not available through
the platform.
Richardson Wealth (USA) Limited Form ADV Part 2A: Firm Brochure 5
The Platform Manager will implement the selected Model Provider’s model for the Account by acquiring the fund shares
or investments that are represented in the selected model portfolios of the Model Provider. You will grant Platform
Manager with the discretionary authority (in the sole discretion of Platform Manager based upon the selected Model
Provider’s designated portfolio models and/or trade signals without first consulting with you) to make all decisions to
buy, sell or hold securities, cash, or other investments for such portion of the Account. You will also grant Platform
Manager with the power and authority to carry out these decisions by giving instructions, on behalf of you, to brokers
and dealers and the qualified custodian of the Account.
RW (USA) may hire/fire at its discretion the Platform Manager, Sub Advisors and other service provider(s) for services
related to the Managed Account Services provided to the Account. Such services provided by Platform Provider and
service provider(s) may include, but are not necessarily limited to, due diligence of the Model Providers, access to
service provider’s technology platform and/or assistance with data reconciliation, performance and/or position reporting,
fee calculation and billing, marketing and presentation materials, database maintenance, quarterly performance
evaluations, payable reports, web site administration, order entry, and other functions related to the administrative
tasks
of providing investment advisory services to the Account. Due to these arrangements, such service provider(s) will have
access to the Account and/or your information.
Retirement Plan Rollover Recommendations
When RW (USA) provides investment advice about your retirement plan account or individual retirement account (“IRA”)
including whether to maintain investments and/or proceeds in the retirement plan account, roll over such
investment/proceeds from the retirement plan account to a IRA or make a distribution from the retirement plan account,
we acknowledge that RW (USA) is a “fiduciary” within the meaning of Title I of the Employee Retirement Income
Security Act (“ERISA”) and/or the Internal Revenue Code (“IRC”) as applicable, which are laws governing retirement
accounts. The way RW (USA) makes money creates conflicts with your interests so RW (USA) operates under a special
rule that requires RW (USA) to act in your best interest and not put our interest ahead of you.
Under this special rule’s provisions, RW (USA) must as a fiduciary to a retirement plan account or IRA under
ERISA/IRC:
• Meet a professional standard of care when making investment recommendations (give prudent advice);
• Never put the financial interests of RW (USA) ahead of you when making recommendations (give loyal
advice);
• Avoid misleading statements about conflicts of interest, fees, and investments;
• Follow policies and procedures designed to ensure that RW (USA) gives advice that is in your best interest;
• Charge no more than is reasonable for the services of RW (USA); and
• Give Client basic information about conflicts of interest.
To the extent we recommend you roll over your account from a current retirement plan account to an individual
retirement account managed by RW (USA), please know that RW (USA) and our investment adviser representatives
have a conflict of interest.
We can earn increased investment advisory fees by recommending that you roll over your account at the retirement
plan to an IRA managed by RW (USA). We will earn fewer investment advisory fees if you do not roll over the funds in
the retirement plan to an IRA managed by RW (USA).
Thus, our investment adviser representatives have an economic incentive to recommend a rollover of funds from a
retirement plan to an IRA which is a conflict of interest because our recommendation that you open an IRA account to
be managed by our firm can be based on our economic incentive and not based exclusively on whether or not moving
the IRA to our management program is in your overall best interest.
We have taken steps to manage this conflict of interest. We have adopted an impartial conduct standard whereby our
investment adviser representatives will:
Richardson Wealth (USA) Limited Form ADV Part 2A: Firm Brochure 6
(i) provide investment advice to a retirement plan participant regarding a rollover of funds from the
retirement plan in accordance with the fiduciary status described above,
(ii) not recommend investments which result in RW (USA) receiving unreasonable compensation related to
the rollover of funds from the retirement plan to an IRA, and
(iii) fully disclose compensation received by RW (USA) and our supervised persons and any material
conflicts of interest related to recommending the rollover of funds from the retirement plan to an IRA
and refrain from making any materially misleading statements regarding such rollover.
When providing advice to a retirement plan account or IRA, our investment advisor representatives will act with the care,
skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and
familiar with such matters would use in the conduct of an enterprise of a like character and with like aims, based on the
investment objectives, risk, tolerance, financial circumstances, and a client’s needs, without regard to the financial or
other interests of RW (USA) or our affiliated personnel.
Limits Advice to Certain Types of Investments
RW (USA) provides investment advice on the following types of investments:
• Mutual Funds
• Exchange Traded Funds (ETFs)
• Stocks
• Exchange-listed Securities
• Securities Traded Over-the-Counter
• Government and Corporate Debt Securities
Although we generally provide advice only on the products previously listed, we reserve the right to offer advice on any
investment product that may be suitable for each client’s specific circumstances, needs, goals and objectives.
Tailor Advisory Services to Individual Needs of Clients
RW (USA)’s advisory services are always provided based on your individual needs. This means, for example, that when
we provide asset management services, you are given the ability to impose restrictions on the accounts we manage for
you, including specific investment selections and sectors. We work with you on a one-on-one basis to determine your
investment objectives and suitability information. Our services are always provided based on your individual needs.
We will not enter into an investment adviser relationship with a prospective client whose investment objectives may be
considered incompatible with our investment philosophy or strategies or where the prospective client seeks to impose
unduly restrictive investment guidelines.
Client Assets Managed by RW (USA)
The amount of clients’ assets managed by RW (USA) totaled $193,340,834as of December 31, 2023.
Richardson Wealth (USA) Limited Form ADV Part 2A: Firm Brochure 7