Frequently Asked Questions

What is the CFP® Designation?

Accredited by the National Commission for Certifying Agencies (NCCA), the Certified Financial PlannerTM designation is issued by the Certified Financial Planner Board of Standards, Inc. (CFPBS). The CFP designation is granted to individuals who complete a CFP Certification Examination and as well as to meet the following prerequisites: bachelor’s degree from an accredited college of university and three years of full time personal financial planning experience. In order to qualify, the candidate must complete a CFP-board registered program or hold one of the following titles: CPA, ChFC, Chartered Life Underwriter (CLU), CFA, PhD in business economics, Doctor of Business Administration or Attorney’s license. Once issued, the candidate is required to complete 30 hours of continuing education every two years and must continuously meet the standards administered by CFPBS.

Who is Royal Alliance Associates, Inc.?

Royal Alliance is a diversified financial services company based in New York City. The firm is part of the second largest independent broker/dealer network based on gross revenues as of 12/31/2009. The firm is registered with the Financial Industry Regulatory Authority (FINRA) as a broker/dealer engaged in the offer and sale of securities products and is also a member of the Securities Investor Protection Corporation (SIPC). Royal Alliance is an independent broker/dealer which means that associated firms and advisors operate independently and are not employees of the broker/dealer.

Financial planners and advisors are often associated with a broker/dealer to assist them with compliance supervision, regulatory filings and maintenance, proper securities licensing, continuing education requirements, securities sales and developing their businesses. We like the fact that Royal Alliance periodically conducts on-site branch office examinations (these are required) so that we can continually improve our policies and procedures.

Who is SIPC?

When a brokerage firm is closed due to bankruptcy or other financial difficulties and customer assets are missing, the Securities Investor Protection Corporation (SIPC) steps in as quickly as possible and, within certain limits, works to return customers' cash, stock and other securities, and other customer property. Without SIPC, investors at financially troubled brokerage firms might lose their securities or money forever or wait for years while their assets are tied up in court. For more information, go to www.SIPC.com.

Is my brokerage account insured by the FDIC?

Securities held in your brokerage account are not insured by the FDIC (see SIPC above). However, free credit balances in your brokerage account will be automatically moved into an Insured Deposit Program Account, unless you specify a particular tax-advantaged money market fund. Balances in the Insured Deposit Program Account will be insured by the Federal Deposit Insurance Corporation (FDIC) up to $100,000 in each program bank per depositor and up to $1,600,000 for individual accounts or $3,200,000 for joint accounts of total FDIC insurance coverage, subject to applicable limitations. For additional information about this program and current insurance limits, go to www.RoyalAlliance.com/disclosures/insured-deposit-program  and www.FDIC.gov/deposit.

Who is Pershing?

Pershing LLC has been hired by Royal Alliance to serve as custodian for your brokerage account holdings. The custodian is responsible for safekeeping your securities holdings, trade execution and settlement, and creation and delivery of your account statements. In addition, Pershing provides us with a trading system and other back office services to help us manage your account effectively. A subsidiary of the Bank of New York Mellon Corporation, Pershing is one of the top 3 custodians serving the financial advisory community. For more information, go to www.Pershing.com/for_investors.html.

What is the difference between your firm structure and that of Bernie Madoff’s investment fund?

One of the risks highlighted by the Bernie Madoff scandal is who holds your money. Basically, Bernie Madoff’s investment fund received deposits from clients that were co-mingled with investments from other investors. While this practice is not illegal by itself, there is a greater risk to investors with firms that co-mingle assets with other investors.

All assets that we advise or manage are held by an independent custodian, Pershing. You will never write out an investment check payable to Jackson Financial Advisors; all investment deposits are made payable directly to Pershing (for non-retirement accounts) or SunAmerica Trust Company (for qualified retirement accounts and IRAs). While no structure can guarantee the safety of your funds, we were deliberate in selecting an arrangement that requires your assets be held by an independent custodian.