Background
ACT Advisors, LLC (ACT Advisors Wealth Management, ACT Advisors, we, our, us) is
an SEC registered investment adviser. Our founding members, Doug English and
Roger Wesley (Wes) Johnson created the firm as a limited liability company in October
of 2014 and registered it as an independent investment adviser.
We have a fiduciary duty to all ACT Advisors clients. As a fiduciary, it is always our
responsibility to provide fair and full disclosure of all material facts and to act solely in
the best interest of each of our clients. We require all of our employees to conduct
business with the highest level of ethical standards and to comply with all federal and
state securities laws at all times.
When dealing with investment advisory clients, our Investment Advisor Representatives
(IARs) have an affirmative duty of care, loyalty, honesty, and good faith to act in the
best interests of their clients. IARs should fully disclose all material facts concerning any
conflict that does arise with these clients and should avoid even the appearance of a
conflict of interest.
We and our IARs must abide by honest and ethical business practices including, but not
limited to:
• Not inducing trading in a client's account that is excessive in size or frequency
in view of the financial resources and character of the account;
• Making recommendations with reasonable grounds to believe that they are
appropriate based on the information furnished by the client;
• Placing discretionary orders only after obtaining client’s written trading
authorization contained within the advisory agreement or via separate
amendment;
• Not borrowing money or securities from, or lending money or securities to a
client;
• Not placing an order for the purchase or sale of a security if the security is not
registered, or the security or transaction is not exempt from registration in the
specific state;
Both we and our IARs will:
• Allocate securities in a manner that is fair and equitable to all clients.
• Not effect agency-cross transactions for client accounts.
Investment Management and Financial Planning and/or Consulting:
ACT Advisors provides discretionary investment advisory services on a fee basis. ACT
Advisors' annual investment advisory fee shall include investment advisory services. To
the extent specifically requested by the client, ACT Advisors may be engaged to provide
financial planning and consulting services for a separate fee as described in Item 5
below. In the event that the client requires extraordinary planning and/or consultation
services (to be determined in the sole discretion of ACT Advisors), ACT Advisors may
determine to charge for such additional services, the dollar amount of which shall be set
forth in a separate written notice to the client.
To commence the investment advisory process, ACT Advisors will ascertain each
client’s investment objective(s) and then allocate the client’s assets consistent with the
client’s designated investment objective(s). Once allocated, ACT Advisors provides
ongoing supervision of the account(s). Before engaging ACT Advisors to provide
investment advisory services or investment advisory services with financial planning
and consulting services, clients are required to enter into an Investment Advisory
Agreement with ACT Advisors setting forth the terms and conditions of the engagement
(including termination), describing the scope of the services to be provided, and the fee
that is due from the client.
Limitations of Financial Planning and Non-Investment Consulting/Implementation
Services.
To the extent requested by the client, ACT Advisors will generally provide financial
planning and related consulting services regarding non-investment related matters,
such as tax and estate planning, insurance, etc. ACT Advisors will generally provide
such consulting services for a separate fee as set forth at Item 5 below. Please Note:
ACT Advisors believes that it is important for the client to address financial planning
issues on an ongoing basis. ACT Advisors’ advisory fee, as set forth at Item 5 below,
will remain the same regardless of whether or not the client determines to address
financial planning issues with ACT Advisors. Please Also Note: ACT Advisors does not
serve as an attorney, accountant, or insurance agent, and no portion of our services
should be construed as same. Accordingly, ACT Advisors does not prepare legal
documents, prepare tax returns, or sell insurance products. To the extent requested by
a client, we may recommend the services of other professionals for non-investment
implementation purpose (i.e., attorneys, accountants, insurance, etc.). The client retains
absolute discretion over all such implementation decisions and is free to accept or reject
any recommendation from ACT Advisors and/or its representatives. If the client
engages any professional (i.e., attorney, accountant, insurance agent, etc.),
recommended or otherwise, and a dispute arises thereafter relative to such
engagement, the client agrees to seek recourse exclusively from the engaged
professional. At all times, the engaged licensed professional[s] (i.e., attorney,
accountant, insurance agent, etc.), and not ACT Advisors, shall be responsible for the
quality and competency of the services provided.
Passive Strategy Asset Management
This strategy is designed for clients seeking management of accounts valued at
$150,000 and below, where assets are primarily allocated to low-cost securities that
usually do not incur transaction fees. In certain limited circumstances, accounts
exceeding $150,000.00 in value may be invested in this strategy. The specific securities
will be selected that track appropriate equity and fixed income
index returns as well as
vehicles that are designed on a passive but non-indexed basis. Equity and fixed income
weightings will be determined by the clients’ investment objectives and rebalanced no
less than annually, but typically two to three times per year. Clients invested in this
strategy are encouraged to discuss the strategy itself and its suitability with their
Advisor, at least on an annual basis.
Financial Planning Services
To the extent requested and engaged by the client to do so, ACT Advisors will generally
provide financial planning and related consulting services regarding non-investment
related matters, such as tax and estate planning, insurance, etc. per the terms and
conditions of a separate agreement and a separate fee as discussed at Item 5 below,
the fee for which shall be based upon the individual providing the service and the scope
of the services to be provided. Prior to engaging ACT Advisors to provide planning or
consulting services, clients are generally required to enter into a Financial Planning
Services Agreement with ACT Advisors setting forth the terms and conditions of the
engagement (including termination), describing the scope of the services to be
provided, and the fee that is due from the client.
Employer Sponsored Plans Participant Advice
We offer advisory, consulting, and rebalancing services to the participants of employer
sponsored plans (Participants). We use our research and asset allocation strategies,
along with our knowledge of the participant’s personal financial objectives, to develop
an investment mix within the available investment options in the plan. We regularly
assess the investment mix and keep it up to date with any asset allocation moves in our
strategies, subject to the limitations of the options available in the plan. We do not have
custody or any ability to access or withdraw the funds in the plan.
Tailored Relationships
We tailor investment advisory services to the individual needs of the client. The goals
and objectives for each client are explored and documented. Our clients can impose
restrictions on the investments in their accounts. We may accept any reasonable
limitation or restriction to our discretionary authority on the account placed by the client.
All limitations and restrictions placed on accounts must be presented to us in writing.
Client Assets
We offer asset management on a discretionary basis. As of December 31, 2023, we
have $374,060,105 in assets under management.
Use of Testimonials and/or Endorsements
Effective May 4, 2021, the SEC adopted Rule 206(4)-1 under the Investment Advisers
Act, known as the “Marketing Rule”. In addition to other activities, the new rule
dramatically changed the use of testimonials by Investment Advisors registered with the
SEC. The rule defines “testimonials” as any statement by a current client or investor in a
private fund advised by the investment adviser (i) about the client or investor’s
experience with the investment adviser or its supervised persons (ii) that directly or
indirectly solicits any current or prospective client or investor to be a client of, or an
investor in a private fund advised by, the investment adviser or (iii) that refers any
current or prospective client or investor to be a client of, or an investor in a private fund
advised by, the investment adviser. However, all testimonials, whether or not distributed
to more than one person and whether or not otherwise constituting an “advertisement”
are subject to numerous other requirements.
For all testimonials, an RIA must make five disclosures, namely:
• A clear and prominent disclosure whether or not the provider of the
testimonial is a client;
• If applicable, a clear and prominent disclosure that the provider has received
cash or non-cash compensation, as the case may be;
• A description of the material terms of the compensation provided, if
applicable;
• A clear and prominent brief description of all conflicts of interest resulting from
the adviser’s relationship with the provider; and
• A detailed description of the material conflicts of interest and/or the
compensation arrangement if applicable.
Additionally, under the general prohibitions under the SEC New Marketing Rule a
testimonial or endorsement in an advertisement may not:
• include an untrue statement of a material fact, or omit to state a material fact
necessary to make the statement made, in light of the circumstances under
which it was made, not misleading;
• include a material statement of fact that the adviser does not have a
reasonable basis for believing it will be able to substantiate upon demand by
the Commission;
• include information that would reasonably be likely to cause an untrue or
misleading implication or inference to be drawn concerning a material fact
relating to the adviser;
• discuss any potential benefits without providing fair and balanced treatment of
any associated material risks or limitations;
• reference specific investment advice provided by the adviser that is not
presented in a fair and balanced manner;
• include or exclude performance results, or presenting performance time
periods, in a manner that is not fair and balanced; and
• otherwise be materially misleading.
Beginning in Q3 2021, at the conclusion of a client’s annual review, ACT Advisors
began asking all clients to post a review of ACT Advisors on Google. ACT Advisors
does not compensate clients for these reviews, nor does ACT exercise any editorial or
content control over these reviews. Further, ACT cannot remove a review that is
negative or unflattering, but Goggle may remove a review if, in Google’s view, the
review violates Google’s standards.