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Independent Assessment Report

Ingham Russell Investment Advisors Inc.

 

CEFEX Investment Advisor Certification

 

 

Investment Advisor Definition

 

A fiduciary who is responsible for managing a client’s overall investment strategy, which may include deciding on the client’s asset allocation, developing the client’s investment strategy, implementing the strategy with appropriate Investment Managers, and monitoring the strategy, on a one-time or ongoing basis. The term refers to those who provide specific or comprehensive investment advice including financial advisors, broker-consultants, investment consultants, wealth managers, financial consultants trust officers, financial planners and fiduciary advisers.

 

SECTION 1 – COMPANY INFORMATION

CEFEX File No.: CFX10002
Company Name: Ingham Russell Investment Advisors Inc.
Address: 9155 S. Dadeland Blvd. Suite 1512   Miami   FL   33156-2737   US
Phone: 305-671-2200

 

SECTION 2 – ASSESSMENT DETAILS

Date of Registration: 2016.09.13
Assessment Number: R11
Assessment Team:
Position Name Company
Analyst Donald K. Denton Roland Criss Fiduciary Services
Observer rcassociate Roland Criss Fiduciary Services

 

CEFEX Registration Committee (CRC)

The CEFEX Registration Committee is responsible for ensuring the consistency, impartiality and technical merit of CEFEX assessments. Members of the CRC include: Blaine F. Aikin, CFP®, CFA, AIFA® Executive Chairman, Fi360 Inc and CEFEX, J. Richard Lynch, AIFA®, Director Fi360, David A. Vriesenga, Senior Partner Vriesport Consulting Services, Roger Levy, AIFA®, Managing Director Cambridge Fiduciary Services LLC, Matthew Boyle, AIFA® Director of Operations, CEFEX and Carlos Panksep, Managing Director, CEFEX.

Attestation

The Analyst is independent of the registered firm. He/she has not been employed or compensated by the registered firm for a period of at least 2 years prior and 6 months following this assessment, for the purposes of providing fiduciary consulting services. The Analyst is an Accredited Investment Fiduciary Analyst (AIFA®) and has the adequate expertise and proficiency to perform this assessment.

Purpose and Scope of this Assessment:

To evaluate the Advisor’s conformance to the practices and associated criteria as defined in the document “Prudent Practices for Investment Advisors” (the Standard) for the declared scope of registration. A full copy of the Standard which is the basis for this assessment, can be found in the Prudent Practices Handbook here.

The scope of registration is as follows:

Summary of Assessment Methodology:

The assessment requires that the Analyst plan and perform a review of a representative sample of the Advisor’s written records, interviews with appropriate personnel and, on a test basis, collect evidence supporting the actions taken by the Advisor in providing services to its clients. Sampling of records was conducted in accordance with the statistical guidelines used by the International Organization for Standardization, which requires a maximum sample size equal to the square root of the total available records.

Assessment elements include:

 

SECTION 3 - ASSESSMENT FINDINGS

 

The following Practices were assessed within the 3 months prior to the Date of Registration shown above and found to be in conformity.

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No. Practice Status
1.1 IA demonstrates an awareness of fiduciary duties.  Show Detail   Hide Detail Conformity
Detail
1.1.1   The Investment Advisor complies with all laws and rules that apply to the services the Advisor is providing.
1.1.2   The Investment Advisor complies with all applicable Practices and Procedures defined in this Prudent Practices handbook.
1.1.3   The Investment Advisor adheres to all applicable standards of conduct and code(s) of ethics required by law, regulation, employers, and professional organizations.
  Substantiation

Employee Retirement Income Security Act of 1974 [ERISA]

§404(a) (1)

Regulations

29 C.F.R. §2550.404a-1

Case Law

Tibble v. Edison, Int’l, 135 S. Ct. 1823, 59 E.B.C. 2461 (2015), on remand 843 F.3d 1187 (9th Cir. 2016) and 2017 WL 3523737 (C.D.Cal. 2017); Tussey v. ABB, Inc., 52 E.B.C. 2826, 2012 WL 1113291 (W.D. Mo. 2012), aff’d in part 2014 WL 1044831 (8th Cir. 2014) and 2017 WL 929202 (8th Cir. 2017), Braden v. Wal-Mart Stores, Inc., 588 F.3d 585 (8th Cir. 2009), 6:08-cv-03109-GAF (W.D. Mo. 2012); Marshall v. Glass/Metal Association and Glaziers and Glassworkers Pension Plan, 507 F. Supp. 378 2 E.B.C. 1006 (D.Hawaii 1980); Katsaros v. Cody, 744 F.2d 270, 5 E.B.C. 1777 (2d Cir. 1984), cert. denied, Cody v. Donovan, 469 U.S. 1072, 105 S. Ct. 565, 83 L. Ed. 2d 506 (1984); Marshall v. Snyder, 1 E.B.C. 1878 (E.D.N.Y. 1979); Donovan v. Mazzola, 716 F. 2d 1226, 4 E.B.C. 1865 (9th Cir. 1983), cert. denied, 464 U.S. 1040, 104 S. Ct. 704, L.Ed.2d 169 (1984); Fink v. National Savings and Trust Company, 772 F. 2d 951, 6 E.B.C. 2269 (D.C. Cir. 1985); Metzler v. Graham, 112 F.3d 207 (5th Cir. 1997)

Other

Joint Committee on Taxation, Overview of the Enforcement and Administration of the Employee Retirement and Income Security Act of 1974 (JCX­16­90, June 6, 1990)

Staff of the U.S. Securities and Exchange Commission, Study on Investment Advisers and Broker Dealers, As Required by Section 913 of the Dodd-Frank Act (Jan., 2011)

Investment Advisers Act of 1940 [IAA]

§202(a)(11) [Definition of an ‘Investment Adviser’]

§206(1), (2), (3) [Anti-fraud provisions that apply to adviser’s fiduciary obligations]

§203A(b)(1) [State authority over ‘small’ RIAs]

Regulations

Investment Advisers Act Rule 203-1 [Application for Investment Adviser Registration]

Investment Advisers Act Rule 204-2 [Books and Records to be Maintained by Investment Advisers]

Investment Advisers Act Rule 204A-1 [Investment Advisers Codes of Ethics]

Investment Advisers Act Rule 206(4)-1 [Advertisements by Investment Advisers]

Case Law

Scott E. DeSano, et al., SEC Adm Proc 3-12879A (Mar. 6, 2008); Strong Capital Management, Inc., et al., Investment Company Act Release No. 26448 (May 20, 2004); SEC v. Capital Gains Research Bureau, 375 U.S. 180 (1963); Transamerica Mortgage Advisors, Inc. v. Lewis, 444 U.S. 11, 17 (1979); In re Arleen W. Hughes, Release No. 34-4048 (Feb 18, 1948)

Other

Information for Newly-Registered Investment Advisers, Prepared by the Staff of the Securities and Exchange Commission’s Division of Investment Management and Office of Compliance Inspections and Examinations, http://sec.gov/divisions/investment/advoverview.htm (July 2011)

Unethical Business Practices Of Investment Advisers, Investment Adviser Representatives, And Federal Covered Advisers, NASAA Model Rule 102(a)(4)-1 (Adopted Apr. 27, 1997, Amended Apr. 18, 2004 and Sept. 11, 2005)

Code of Ethics Guidance for Investment Advisers (June 26, 2015) (im-guidance-2015-03.pdf).

State Insurance Regulation

Suitability and Best Interests in Life Insurance and Annuity Transactions, New York Dep’t. of Fin. Svcs. (11 NYCRR 224). (Adopted July 17, 2018; effective Aug. 1, 2019.)

Applicability of the Investment Advisers Act to Financial Planners, Pension Consultants, and Other Persons Who Provide Investment Advisory Services as a Component of Other Financial Services, SEC Interpretive Release No. IA-1092, http://www.sec.gov/rules/interp/1987/ia-1092.pdf (Oct. 8, 1987)

Uniform Prudent Investor Act [UPIA]

§1(a); §2(a); §2(d)

Uniform Prudent Management of Institutional Funds Act [UPMIFA]

§3(b); §3(c)

Management of Public Employee Retirement Systems Act [MPERS]

§7

Case Law

Harvard College v. Amory, 26 Mass. 446, 9 Pick. 454 (1830); Davoue v. Fanning, 2 Johns. Ch. 252 (N.Y. 1816); Fulton v. Whitney, 66 N.Y. 548 (1876); and National Labor Relations Board v. Amax Coal Co., 453 U.S. 322, 101 S. Ct. 2789, 69 L.Ed. 2d 672 (1981)

Employee Retirement Income Security Act of 1974 [ERISA]

§404(a) (1)

Regulations

29 C.F.R. §2550.404a-1

Case Law

Tibble v. Edison, Int’l, 135 S. Ct. 1823, 59 E.B.C. 2461 (2015), on remand 843 F.3d 1187 (9th Cir. 2016) and 2017 WL 3523737 (C.D.Cal. 2017); Tussey v. ABB, Inc., 52 E.B.C. 2826, 2012 WL 1113291 (W.D. Mo. 2012), aff’d in part 2014 WL 1044831 (8th Cir. 2014) and 2017 WL 929202 (8th Cir. 2017), Braden v. Wal-Mart Stores, Inc., 588 F.3d 585 (8th Cir. 2009), 6:08-cv-03109-GAF (W.D. Mo. 2012); Marshall v. Glass/Metal Association and Glaziers and Glassworkers Pension Plan, 507 F. Supp. 378 2 E.B.C. 1006 (D.Hawaii 1980); Katsaros v. Cody, 744 F.2d 270, 5 E.B.C. 1777 (2d Cir. 1984), cert. denied, Cody v. Donovan, 469 U.S. 1072, 105 S. Ct. 565, 83 L. Ed. 2d 506 (1984); Marshall v. Snyder, 1 E.B.C. 1878 (E.D.N.Y. 1979); Donovan v. Mazzola, 716 F. 2d 1226, 4 E.B.C. 1865 (9th Cir. 1983), cert. denied, 464 U.S. 1040, 104 S. Ct. 704, L.Ed.2d 169 (1984); Fink v. National Savings and Trust Company, 772 F. 2d 951, 6 E.B.C. 2269 (D.C. Cir. 1985); Metzler v. Graham, 112 F.3d 207 (5th Cir. 1997)

Other

Joint Committee on Taxation, Overview of the Enforcement and Administration of the Employee Retirement and Income Security Act of 1974 (JCX­16­90, June 6, 1990)

Staff of the U.S. Securities and Exchange Commission, Study on Investment Advisers and Broker Dealers, As Required by Section 913 of the Dodd-Frank Act (Jan., 2011)

Investment Advisers Act of 1940 [IAA]

§202(a)(11) [Definition of an ‘Investment Adviser’]

§206(1), (2), (3) [Anti-fraud provisions that apply to adviser’s fiduciary obligations]

§203A(b)(1) [State authority over ‘small’ RIAs]

Regulations

Investment Advisers Act Rule 203-1 [Application for Investment Adviser Registration]

Investment Advisers Act Rule 204-2 [Books and Records to be Maintained by Investment Advisers]

Investment Advisers Act Rule 204A-1 [Investment Advisers Codes of Ethics]

Investment Advisers Act Rule 206(4)-1 [Advertisements by Investment Advisers]

Case Law

Scott E. DeSano, et al., SEC Adm Proc 3-12879A (Mar. 6, 2008); Strong Capital Management, Inc., et al., Investment Company Act Release No. 26448 (May 20, 2004); SEC v. Capital Gains Research Bureau, 375 U.S. 180 (1963); Transamerica Mortgage Advisors, Inc. v. Lewis, 444 U.S. 11, 17 (1979); In re Arleen W. Hughes, Release No. 34-4048 (Feb 18, 1948)

Other

Information for Newly-Registered Investment Advisers, Prepared by the Staff of the Securities and Exchange Commission’s Division of Investment Management and Office of Compliance Inspections and Examinations, http://sec.gov/divisions/investment/advoverview.htm (July 2011)

Unethical Business Practices Of Investment Advisers, Investment Adviser Representatives, And Federal Covered Advisers, NASAA Model Rule 102(a)(4)-1 (Adopted Apr. 27, 1997, Amended Apr. 18, 2004 and Sept. 11, 2005)

Code of Ethics Guidance for Investment Advisers (June 26, 2015) (im-guidance-2015-03.pdf).

State Insurance Regulation

Suitability and Best Interests in Life Insurance and Annuity Transactions, New York Dep’t. of Fin. Svcs. (11 NYCRR 224). (Adopted July 17, 2018; effective Aug. 1, 2019.)

Applicability of the Investment Advisers Act to Financial Planners, Pension Consultants, and Other Persons Who Provide Investment Advisory Services as a Component of Other Financial Services, SEC Interpretive Release No. IA-1092, http://www.sec.gov/rules/interp/1987/ia-1092.pdf (Oct. 8, 1987)

Uniform Prudent Investor Act [UPIA]

§1(a); §2(a); §2(d)

Uniform Prudent Management of Institutional Funds Act [UPMIFA]

§3(b); §3(c)

Management of Public Employee Retirement Systems Act [MPERS]

§7

Case Law

Harvard College v. Amory, 26 Mass. 446, 9 Pick. 454 (1830); Davoue v. Fanning, 2 Johns. Ch. 252 (N.Y. 1816); Fulton v. Whitney, 66 N.Y. 548 (1876); and National Labor Relations Board v. Amax Coal Co., 453 U.S. 322, 101 S. Ct. 2789, 69 L.Ed. 2d 672 (1981)

2.1 An investment time horizon has been identified for each objective of the client.  Show Detail   Hide Detail Conformity
Detail
2.1.1   Sources, timing, distribution, and uses of each client's cash flows are documented.
2.1.2   In the case of an individual investor, an appropriate asset/liability study has been factored into the time horizon.
2.1.3   In the case of a defined benefit retirement plan, an appropriate asset/liability study has been factored into the time horizon.
  Substantiation

Internal Revenue Code of 1986, as amended [IRC]

Other

IRS Notice 2014-66

Employee Retirement Income Security Act of 1974 [ERISA]

§3(34); §401(b)(1); §404(a)(1); §404(a)(1)(C)

Regulations

29 C.F.R. §2550.404a-­1(b)(1)(A); 29 C.F.R. §2550.404a-­1(b)(2); 29 C.F.R. §2550.404c-5 (Preamble); 29 C.F.R. §2509.08-1; §2509.96-1.

Case Law

Metzler v. Graham, 112 F.3d 207, 20 E.B.C. 2857 (5th Cir. 1997)

Other

Interpretive Bulletin 96­1, 29 C.F.R. §2509.96­1; H.R. Report No. 1280, 93d Congress, 2d Session (1974); ERISA Opinion Letter 2006-08A (Oct. 3, 2008); Preamble to 29 C.F.R. §§2509, 2510, and 2550, 81 Fed. Reg. 20945 (Apr. 8, 2016); but see Chamber of Commerce v. U.S. Dep’t of Labor, 885 F.3d 360 (5th Cir. 2018) (vacating final regulations) ;DOL Information Letter to Mark Iwry (October 23, 2014); DOL Advisory Council on Employee Welfare and Pension Benefit Plans Report on Participant Plan Transfers and Account Consolidation for the Advancement of Lifetime Plan Participation (November 2016). 

Investment Advisers Act of 1940

§206

Case Law

SEC v. Capital Gains Research Bureau, 375 U.S. 180 (1963); In re David A. King and King Capital Corp., Investment Advisers Act Release No. 1391 (Nov. 9, 1933); In re George Sein Lin, Investment Advisers Act Release No. 1174 (June 19, 1989).

Other

Suitability of Investment Advice Provided by Investment Advisers, Investment Advisers Act Release No. 1406 (Mar. 16, 1994).

Skip Navigation LinksThe Value of Goals-Based Financial Planning by David Blanchett, CFP®, CFA. Journal of Financial Planning 28 (6): 42–50.

Uniform Prudent Investor Act [UPIA]

§2(a); §2(b); §2(c); §4; §6

Uniform Prudent Management of Institutional Funds Act [UPMIFA]

§3

Management of Public Employee Retirement Systems Act [MPERS]

§7; §7(4) (Comments); §8; §10(b)

Internal Revenue Code of 1986, as amended [IRC]

Other

IRS Notice 2014-66

Employee Retirement Income Security Act of 1974 [ERISA]

§3(34); §401(b)(1); §404(a)(1); §404(a)(1)(C)

Regulations

29 C.F.R. §2550.404a-­1(b)(1)(A); 29 C.F.R. §2550.404a-­1(b)(2); 29 C.F.R. §2550.404c-5 (Preamble); 29 C.F.R. §2509.08-1; §2509.96-1.

Case Law

Metzler v. Graham, 112 F.3d 207, 20 E.B.C. 2857 (5th Cir. 1997)

Other

Interpretive Bulletin 96­1, 29 C.F.R. §2509.96­1; H.R. Report No. 1280, 93d Congress, 2d Session (1974); ERISA Opinion Letter 2006-08A (Oct. 3, 2008); Preamble to 29 C.F.R. §§2509, 2510, and 2550, 81 Fed. Reg. 20945 (Apr. 8, 2016); but see Chamber of Commerce v. U.S. Dep’t of Labor, 885 F.3d 360 (5th Cir. 2018) (vacating final regulations) ;DOL Information Letter to Mark Iwry (October 23, 2014); DOL Advisory Council on Employee Welfare and Pension Benefit Plans Report on Participant Plan Transfers and Account Consolidation for the Advancement of Lifetime Plan Participation (November 2016). 

Investment Advisers Act of 1940

§206

Case Law

SEC v. Capital Gains Research Bureau, 375 U.S. 180 (1963); In re David A. King and King Capital Corp., Investment Advisers Act Release No. 1391 (Nov. 9, 1933); In re George Sein Lin, Investment Advisers Act Release No. 1174 (June 19, 1989).

Other

Suitability of Investment Advice Provided by Investment Advisers, Investment Advisers Act Release No. 1406 (Mar. 16, 1994).

Skip Navigation LinksThe Value of Goals-Based Financial Planning by David Blanchett, CFP®, CFA. Journal of Financial Planning 28 (6): 42–50.

Uniform Prudent Investor Act [UPIA]

§2(a); §2(b); §2(c); §4; §6

Uniform Prudent Management of Institutional Funds Act [UPMIFA]

§3

Management of Public Employee Retirement Systems Act [MPERS]

§7; §7(4) (Comments); §8; §10(b)

SECTION 4 - ASSESSMENT CONCLUSIONS AND RECOMMENDATION

 

Based on the findings obtained during the Assessment, the Company is in substantial conformity to the Standard, and is recommended for CEFEX registration.

This assessment has been reviewed by the CEFEX Registration Committee to maintain impartiality and consistency in the registration process. For details on the complete assessment process, please visit www.cefex.org

 

Note to Report

 

The information contained in this report is a summary of an assessment conducted by CEFEX, Centre for Fiduciary Excellence, LLC and is valid for 1 year from the Date of Registration shown. The report is suitable for public distribution at the discretion of the certified firm. To confirm the registration of this firm, please visit www.cefex.org , where a listing of all currently registered firms can be viewed. For any questions related to this report, please contact CEFEX at admin@cefex.org.