Form CRS: Client Relationship Summary

June 30, 2020 

Harness Wealth Advisers LLC (the “Firm” or “we” or “us” or “our”)

The Firm operates as an “internet investment adviser” and is registered as such with the Securities and Exchange Commission (the “SEC”).  Fees assessed for investment advisory services differ from those for brokerage services, and it is important for retail investors to understand the difference. Free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.

 

What investment advisory services and advice can you provide me?

Harness Wealth operates as an “internet investment adviser” providing retail investors (“Clients”), by means of a dedicated interactive website, with individually tailored referrals to members of a proprietary network of Firm-curated unaffiliated SEC-registered asset managers (the “Managers”).  The Managers separately enter into direct bilateral contractual agreements with Clients for the rendition of investment advisory services.  Other than regarding such referrals, Harness does not render investment advice directly to its Clients.  Nor do we assume responsibility for overseeing or monitoring the management, on a discretionary or nondiscretionary basis, of Client accounts with the Managers. Clients are generally expected to have (individually, or jointly) $250,000 or more of investable assets.  Clients not meeting this characteristic may be referred to SEC-registered asset managers offering financial planning services, typically on an hourly or flat fee basis.

See in these regards disclosure under the captions of Item 4 (“Advisory Business”) and Item 7 (“Types of Clients”) in the Firm’s Form ADV, Part 2A brochure which is viewable here.

Conversation Corner

Questions you might wish to ask when considering our services:

  • Given my financial situation, should I choose an investment advisory service? Why or why not?
  • How will you choose investments to recommend to me?
  • What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?
  • Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?
  • How might your conflicts of interest affect me, and how will you address them?
  • As a financial professional, do you have any disciplinary history? For what type of conduct?
  • Who is my primary contact person? Is he or she a representative of an investment adviser or a broker-dealer? Who can I talk to if I have concerns about how this person is treating me?

See responses to these questions which are viewable here.

 

What fees will I pay?

Principal Fees and Costs

Harness Wealth ordinarily receives a fee of between 15% and 20% of the asset-based fees or other compensation received by any third-party Manager (or their affiliates) from a Client who was referred, by us, to the Manager to render asset management related services to the Client.  Different fee arrangements ordinarily apply regarding Managers rendering financial planning services to Clients who are referred to them, by us, typically based upon a share of the hourly or flat fees charged to the Client by such Managers. Our fees are ordinarily payable by Managers on a quarterly basis following their receipt of fee payments from the Client.

Conflicts of Interest

Harness Wealth acknowledges that it has an incentive to include Managers, on its curated network, for referral to Clients due, in large part, to the Managers’ willingness to enter into a fee-sharing arrangement with us.  (We also stand to benefit if the Client commits larger, rather than smaller, amounts of their assets to the Managers’ advisement.)  Clients are informed of this conflict of interest by means of a “Solicitor’s Disclosure Statement” which we ensure that they are able to see, and have signed-off on, on our website, as a prerequisite for the Client retaining our Firm.

Fees for Other Services

Our parent company, Multiplier, Inc., generates income pursuant to similar fee-sharing arrangements with providers of other, non-asset management related services rendered by licensed tax-preparation, accounting and/or legal services professionals to whom our Clients may also be referred.

Additional Information

You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.

Note in this regard, as is stated in our “Solicitor’s Disclosure Statement” (see link re: “Conflicts of Interest” above):

                  “… no additional fees or other amounts are added to the Manager’s normal advisory fees
or to the amount charged by
the Manager as a result of the referral by us to the Manager.”

What are your legal obligations to me when acting as my investment adviser?  How else does your firm make money and what conflicts of interest do you have?

When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours.  At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. See, as some examples to help you understand what this means, the disclosures appearing above under the captions “Conflicts of Interest” and “Fees for Other Services”.

How do your investment professionals make money?

Our financial professionals are salaried. Some professionals may receive additional incentive compensation based on individual goals outlined by Management, however no professionals receive compensation directly tied to revenue generation from Clients of Harness Wealth.

Do you or your financial professionals have legal or disciplinary history? 

We have no legal or disciplinary events to report regarding either the Firm or any of its officers or employees  Please visit Investor.gov/CRS for a free and simple search tool to research us and our financial professionals.

Additional Information

Additional information about our services can be found here. If you have any questions about the contents of this or any other linked information or would like to request a copy of this relationship summary, please contact concierge@harnesswealth.com or 646-586-5427.