The object
The advisor will offer an investment allocation deemed to be optimal in respect to the client's profile.
The client will fill in his profile accurately and will pay the fixed price in advance at account oppening and the variabile price - if any - at the end of one year, as described below.
The price
The client can chose between a standard account or a platinum account. Their price is:
- standard account: 20 euro/year, fixed, payed in advance.
- platinum account: 20 euro/year, fixed, payed in advance + 10% of the client's virtual profit for the past year. That means that regardless of wheather the platinum client has implemented our advice or not, the client would also pay the adviser 10% of the profit that should have been realized if the client had actually implemented the advice.
For both types of accounts, 20 Euro worth of credits will be added to client's account upon activation. These credits could be spent only when requesting an investment advise. The cost for such advise is 10 euro credits. Thus every client can request two advises per year (a recommended minimum) but can also purchase more credits at the same rate if that's needed.
Limitation of the standard versus platinum account
The standard account is un unexpensive, extremely valuable tool for getting excellent and minimalistic financial advice. For a standard account, the client's return objectives will be limited to 'maintaining the same lifestyle after retirement'. The client will be presented with a fixed allocation that should be updated periodically (6 months recommended).
On the other hand, the platinum account is designed for an investor with demanding financial constraints. This client can state a variety of objectives: buy x at price y on date z, cover weekly expense a from date b to date c, spend d money at retirement day or at death, etc. Moreover, the strategic advice for a platinum account holder will contain dynamic allocations - portfolios that will and are expected to shift their composition depending on market conditions, tested investment algorithms and more.
Derulation of the contract
After making a request for advise, the client account will be debited with the correponding price (now 10 Euro) and shortly after (max 5 minutes normally) will be presented with a recommended allocation. The client has the option to read an expanded version of the strategy. The client can accept or decline that strategy.
In case the client declines the strategy, no reimbursement will be made. If no action is taken, the client will be reminded periodically (daily) to accept or decline the proposed strategy.
If the client accepts the strategy, he is immediately offered a set of order recomandations. Again, the client can accept or decline those orders.
If the client accepts the orders, modifications of the clients' account at finpathic will be made accordingly. However, though it is our intention to forward our clients' orders to the broker as we are authorized to do, at this moment we have not partnered with any brokerage house to accept our orders on our clients' behalf. So this account at finpathic, at this moment, is similar to a virtual account and WILL NOT ACTUALLY EXECUTE ORDERS.
Communication
The communication with our clients is made through the finpathic app downloadable at https://finpathic.com/install/ and the website accessible at https://finpathic.com/, as well as through email.
It is recommended that the client installs the finpathic app as this is the most reliable and timely way to receive our recommendation. This is even more important for a platinum account holder, who might receives advices that do not follow a simple periodicity but reflect changing market conditions.
The client can chose the frequency of the portfolio rebalancing that better fits with life style (how often wants the app to buzz him) but it is more important to aknowledge the usually negative impact that too frequent rebalancing could have on the profitability.
Renewal or termination of the contract
The account is authomatically renewed at year's end if neither the advisor nor the client requested account termination.
To terminate the contract, the client should take this precautionary steps that are necessary so that any pending order or strategy wouldn't have an ambiguous status. Thus, the client should:
1. cancel current orders, if any
2. decline proposed orders, if any
3. cancel current strategy
4. cancel proposed strategy, if any.
Finally, on the Account section of the website or app, press Delete account. If you had already received an investment strategy from us, all your information will be kept according to legal requirements referring to entities dealing in financial services for the minimum period and only afterwards will it be deleted . We'll never sell your information.