As a Fiduciary firm, transparency and full disclosure are fundamental to our practice. This page summarizes key facts you need to know about our relationship, our fees, and the services we provide.
1. Our Fiduciary Duty
What is a Fiduciary?
Charlotte Nanette Williams operates as a Registered Investment Adviser (RIA). This means we are legally held to the Fiduciary Standard under the Investment Advisers Act of 1940.
- Your Best Interest First: We are legally and ethically required to put your interests ahead of our own at all times.
- Conflict Avoidance: We must eliminate or fully disclose any potential conflicts of interest so you can provide informed consent.
- Objective Advice: Our recommendations are based solely on what is most suitable and beneficial for you, without regard to our compensation.
This is the highest legal standard of care in the financial industry.
2. Investment Risk Disclosure
Understanding Investment Risk
All investing involves risk, including the risk of principal loss. Past performance is no guarantee of future results. The value of investments fluctuates, and market conditions—such as economic, political, and other unforeseen events—may cause the value of your portfolio to decline.
- Market Risk: The risk that the value of securities may fall due to factors affecting the overall stock market.
- Inflation Risk: The risk that the purchasing power of your investment returns will be diminished by inflation.
- Liquidity Risk: The risk that you may not be able to sell a security quickly at its fair market price.
Charlottenw does not guarantee investment returns, nor do we insure client accounts against market loss.
3. Custody of Assets and Brokerage
Client Assets are Held by Third Parties
We do not take or hold physical custody of your funds or securities. All client assets are held by a qualified, independent third-party custodian (e.g., Schwab, Fidelity, etc.).
- Security: This arrangement provides maximum security, as we only have the authority to place trades and deduct agreed-upon advisory fees. We cannot directly move money out of your account to ourselves.
- Statements: You will receive regular account statements directly from the custodian, which should be compared to the performance reports we provide.
Brokerage Selection
In many cases, we recommend that clients use a specific custodian/brokerage firm with whom we have a custodial relationship. This arrangement provides us with certain services that help us manage your accounts more efficiently (e.g., streamlined reporting, trading platforms). However, we have an obligation to seek “Best Execution” for all transactions, meaning we select brokers who offer the most favorable terms for your specific trade.
4. Required Regulatory Documents
Form ADV Part 2A (The Firm Brochure)
This is the primary disclosure document required by the SEC. It provides comprehensive details about:
- Our services, fees, and methods of compensation.
- The types of clients we serve and the investment strategies we use.
- Our conflicts of interest and any disciplinary information.
All clients are required to receive and review a copy of the Firm Brochure at the beginning of the advisory relationship and are offered a copy annually.
Form CRS (Client Relationship Summary)
For retail investors, this short, easy-to-read document summarizes:
- The services we offer and the types of fees you pay.
- Our fiduciary duty and any conflicts of interest.
- How to find additional information about us on the Investment Adviser Public Disclosure (IAPD) website.
You are strongly encouraged to read both Form ADV Part 2A and Form CRS.
5. How to Verify Our Registration
You can research our firm and our investment adviser representatives for free on the SEC’s public disclosure website.
- Website: https://brokercheck.finra.org
- Search for: CHARLOTTE NANETTE WILLIAMS, I (or enter our CRD Number: 4107934.
