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Blackrock Financial Management Review

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Blackrock Financial Management, registered in 1995, serves 53 state(s) with a licensed staff of 107 advisors. Blackrock Financial Management manages $1.1 trillion and provides investment advisory services for 1,199 clients (1:12 advisor/client ratio).



Firm Information


Summary Firm
Minimum Investment Ask firm
Average Client Balance $955,300,901
Total AUM $1.1 trillion
Fee Range Ask firm
Advisor / Client Ratio 1:12
Languages Offered Ask firm
Specialities Ask firm
Website Visit Site
Phone Number 212-810-5300
Headquarters New York, NY
Locations See locations
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SEC Filings View SEC IAPD CRD #107105


Disciplinary Questions


After checking the disciplinary records of Blackrock Financial Management, our system has identified the following question(s) to ask. Learn more.


Blackrock Financial Management or an advisory affiliate was previously found guilty of making false statements or omissions by the SEC, CFTC, or another regulatory agency or organization.


What happened? When? How many times did it occur? Will anyone that was involved be involved with my accounts in any capacity?


Blackrock Financial Management or an advisory affiliate was previously involved with violating a regulation or statute by a domestic or foreign court, the SEC, CFTC, or another regulatory body or commodities exchange.


What happened? When? How many times did it occur? Will anyone that was involved be involved with my accounts in any capacity?


Blackrock Financial Management or an advisory affiliate has previously been fined or ordered to cease and desist activity by the SEC or CFTC.


What happened? When? How many times did it occur? Will anyone that was involved be involved with my accounts in any capacity?


The SEC, CFTC, or another regulatory agency has previously entered an order against Blackrock Financial Management or an advisory affiliate in connection with an investment-related activity.


What happened? When? How many times did it occur? Will anyone that was involved be involved with my accounts in any capacity?


A regulatory agency has previously denied, suspended, or revoked your firm’s or an advisory affiliate’s registration or license or otherwise restricted their activities.


What happened? When? How many times did it occur? Will anyone that was involved be involved with my accounts in any capacity?


Previously Blackrock Financial Management or an advisory affiliate was found to be the cause for an investment-related business having its authorization to do business denied, suspended, or revoked.


What happened? When? How many times did it occur? Will anyone that was involved be involved with my accounts in any capacity?


Our system found no other disciplinary questions to ask. Checks take place monthly.



Conflict Questions


After checking the regulatory records of Blackrock Financial Management, our system has identified the following question(s) to ask. Learn more.


Is Blackrock Financial Management also a Broker-Dealer or are they affiliated with one? What conflicts arise from this relationship? How does Blackrock Financial Management mitigate them?


Currently Blackrock Financial Management is also a Broker-Dealer or is affiliated with one. When firms are dual-registered as broker-dealers, they may be subject to compensation-related conflicts of interest, including revenue sharing from mutual funds, cross-selling of commissioned insurance products, and the sale of proprietary investment products. All of these conflicts can negatively impact clients via hidden fees and overall higher costs.


Does Blackrock Financial Management offer mutual funds that have 12b-1 fees?


12b-1 fees increase the total annual cost of owning a mutual fund with no guarantee of higher returns. Some firms receive these fees as payments, which creates an incentive to promote them.


Regulatory disclosures state that Blackrock Financial Management sells proprietary investments and products. Please provide me a list of the products and a summary of how much Blackrock Financial Management earns from them.


Blackrock Financial Management recommends proprietary investments and products that could generate larger commissions than other similar non-proprietary products. This could also limit the number and diversity of investment options available to you and may impact their transferability. Do not be afraid to ask how much they will earn from the product or what other non-proprietary options are available.


Does Blackrock Financial Management offer products that have performance-based fees, or does it accept performance-based fees? Will any of my assets be invested in those products?


When performance-based fees are charged, the financial advisor is paid for outperforming a benchmark, typically an index. While this may seem like an attractive compensation structure to ensure your advisor is making your money work for you, often, the managers of those products are incentivized to take inappropriate risks to beat their performance benchmark. For instance, research has shown that mutual funds that use incentive fees take on more risk that funds that do not, and tend to double down and increase their risk following a poor performance. This could be detrimental to a client during down markets.


Does Blackrock Financial Management perform side-by-side management? How does Blackrock Financial Management mitigate conflicts that arise from managing accounts with differing fee structures?


This typically occurs when firms manage mutual funds or hedge funds alongside smaller retail accounts. Side-by-side management can create an incentive for the advisor to favor the larger funds, potentially leading to unequal trading costs and unfavorable trade executions for their retail clients.


Does Blackrock Financial Management recommend securities that it or its affiliates underwrite, or in which it serves as general or managing partner? Will any of my assets be invested in those products?


Blackrock Financial Management recommends securities that they may have recently taken public or otherwise have controlling interest over. This relationship could introduce bias where a firm and its advisors may push those products over others that may have a more favorable performance with which they are not affiliated.


Does Blackrock Financial Management accept soft-dollar benefits? How do these benefits affect the firm’s selection of a broker-dealer partner?


Blackrock Financial Management receives soft-dollar benefits that could incentivize them to push trades through broker-dealers that provide advantages to the firm instead of through broker-dealers that could provide the best trade execution for their clients.


Our system found no other conflict questions to ask. Checks take place monthly.



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Disciplinary History


An important aspect of the Trust Algorithm is processing the SEC Form ADV Part 1 filing of each Registered Investment Advisor (RIA). “Item 11 Disclosure Information” contains a list of valuable disclosures that are relevant for Americans.

As identified in SEC Form ADV Part 1, Item 11 “Disclosure Information”, the Trust Algorithm identified the following disciplinary disclosures for Blackrock Financial Management:




Cost


Unfortunately, there is no single, uniform pricing standard for working with a financial advisor. Catchphrases, including "fee-only," can be helpful; however, Americans often get confused with competitors promoting "fee-based" in response.

Ultimately, to understand the underlying costs of advisory services, we always recommend asking for an itemized fees breakdown and reading the firm's ADV Part 2 Brochure (Item 5, "Fees and Compensation").


View Fee Disclosures




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