Ernst & Young LLP (“EY”), under the supervision of Ernst & Young Investment Advisers LLP (“EYIA”), provides EY Personal Finance (Formerly Employee Financial Services “EFS”), including investment education and counseling services to employees, members of associations, unions or other large groups (“Participants”) pursuant to engagements by corporate employers, pension plan trustees, or other entities formed for the benefit of such Participants (“Sponsors”). Such services are provided through EY Personal Finance, a functional specialty within the firm’s Tax Department.  EYIA is registered with the Securities and Exchange Commission as an investment adviser under the Investment Advisers Act of 1940 (“Advisers Act”) and maintains its main office at 200 Plaza Drive, Suite 102, Secaucus, NJ  07094 (telephone: 800-273-0588).­­­­­­­­­­­­

EY Personal Finance

EY Personal Finance provides financial wellness services that educates participants with different learning styles and approaches to financial planning, including via interaction with EY financial planners as well as digital tools.  The service offers the convenience of different learning methods and tools (telephone counseling, web-based and mobile tools, group learning, and interaction through social media) providing participants the opportunity to “try out” all the available learning styles to select their preferred one or a combination that best meets their needs. (Please note: these services can be bundled together or sold separately.)

• Telephone-based financial planning provides:
  • Unlimited toll-free access to experienced, credentialed, and objective EY financial planners
  • EY financial planners who are trained on sponsoring organizations’ benefit plans and programs
  • EY financial planners who provide information and guidance across all areas of financial planning. Common topics include: employer-provided benefit plans, cash flow and debt management, investment planning, education funding, etc.
  • Personalized reports are available on a variety of topics including retirement, asset allocation, cash flow, net worth, education funding, insurance planning, and debt management

   

• Financial planning website offers:

• A unique and interactive planning experience that grows as the participant’s needs and knowledge level expand
• Robust resources, including calculators and videos

• EY financial planner communication through messaging
• Chat feature for help
• Single sign on which allows users to access the EY Personal Finance website from client sites without further login
• Connection of financial accounts to facilitate information-sharing with EY financial planners (this feature will not be available to clients with independence restrictions)
• Access to a user dashboard which provides participants with the ability to view their personal financial situation, including their aggregation of financial account information if applicable
• Mobile app to allow users to obtain financial education and communicate with EY financial planners

• Group learning:
  • Group learning that informs participants about their benefits and comprehensive financial planning. This learning can be delivered as live workshops, live webinars and/or recorded sessions.
  • A list of action items that apply to a participant’s personal situation

   

• Organization support:

• Dedicated EY project manager(s), including periodic service reviews
• Periodic engagement reports highlighting participant activity
• Integration of services with other benefit providers to create a cohesive program
• Assist client with developing communication materials to promote service

As part of the personal financial advisory services EY may prepare personal asset allocation targets (based on modern portfolio theory and using EY’s own or other approved financial planning tools) for such Participants after obtaining and evaluating information concerning their individual circumstances provided by each Participant either in conversation with an EY financial planner and/or by completing a questionnaire.

            EY does not recommend, and should not be deemed to have recommended, any particular investment as an appropriate investment for the Participants and discussions of various investments should not be construed as such a recommendation. 

EY’s advisory services also may be offered by a Sponsor to Participants in tandem with the personal advisory services of another registered investment adviser designated by the Sponsor that is not affiliated with EY (“Other Adviser”).  In some EY Personal Finance engagements, the Sponsor contemplates that EY will refer individual Participants to the Other Adviser for specific recommendations and/or implementation of the Participant’s investment decisions.  Such referrals by EY do not constitute a recommendation of the Other Adviser by EY to Participants, and, in such cases, EY does not perform any quantitative or qualitative screening procedures with respect to the Other Adviser.

            EY, in certain circumstances, is contracted solely to help train employees of financial institutions seeking to offer financial and tax planning services to clients. Such services do not involve EY providing advice directly to the clients of such financial institutions, but rather entails training a financial institution’s counselors on financial and tax planning topics and such other support as is mutually agreed upon by EY and the financial institution.

All Selections and Investments Are Made Solely by the Participant

EY’s investment education and counseling does not include recommendations concerning the purchase or sale of particular investments or particular industry sectors.  EY may provide counseling on the purchase or sale in the context of providing tax, compensation and benefits, or estate planning services, but that counseling does not reflect a view as to the intrinsic merits of the investment.  All decisions to invest in or dispose of particular investments are made solely by the Participant in the exercise of his or her own discretion.

Fees

           Fees for EY Personal Finance Services generally are negotiated between EY and the Sponsors of such groups on a case-by-case basis.  They usually are based upon (i) a “per capita” eligible participant amount, (ii) a “usage by Participants” amount, (iii) the number of workshops designed and presented by EY, or (iv) other negotiated factors.  EY’s fees in such engagements are paid by the Sponsor.  Participants may incur expenses for fees to any other investment adviser they may consult and will be responsible for transaction charges imposed by broker-dealers through or with whom they effect transactions for their accounts.  Generally, EY’s contracts with Sponsors for services to Participants are terminable by either party in accordance with a specified notice period. If such a contract is terminated at a time other than the end of the quarter, a pro rata portion of any quarterly or other fee paid in advance is refunded.

Investment Advisers

All personal investment advice, and most impersonal investment advice, typically is given only by EY Financial Planners.  Financial Planners are persons who spend all or substantial portions of their time on financial planning. Typically, all of these professionals have at least a degree from a four-year college or university and must meet such other standards as EYIA may establish from time to time.  Those standards may include participation in continuing education programs each year and maintaining what EY regards as significant involvement in financial counseling engagements.  Moreover, financial planners must satisfy applicable State investment adviser representative registration requirements or pass the Series 65 Uniform Investment Adviser Exam of the Financial Industry Regulatory Authority (“FINRA”).  In some instances, EY may retain consultants to assist in providing workshops and staffing the telephone-based financial planning service. Generally, consultants are subject to the same requirements as EY Financial Planners. However, consultants are not subject to the same public accounting independence requirements as EY Financial Planners and their continuing education programs differ in some respects.

Monitoring, Reviews and Reports

            In the case of EY personal Finance engagements that extend beyond one year and involve the provision of personal advisory services to Participants, Participants are asked questions concerning any changes in their relevant individual circumstances.  EY will take into account the changed circumstances of any Participant of which it has notice in the event that Participant seeks additional personal advisory services from EY.  

Miscellaneous

Clients and prospective clients of EY also should be aware of the following additional information concerning EY and EYIA:

Custody of Securities or Funds.  EY does not manage participant accounts on a discretionary basis and does not take custody of participant securities or participant funds.  

Other Financial Industry Activities.   As noted above, EYIA is responsible for supervising the investment advisory services provided by EY.  EY and Ernst & Young (U.S.) are general partners of EYIA.  In consideration of EYIA’s supervising the rendering of investment planning services provided by EY, EY provides EYIA with office and filing space, staff and other assistance.  All of EYIA’s time is spent supervising the compliance and operations of the investment planning services provided by EY.  

Other Business Activities.   EY is a public accounting firm which spends substantially all of its time providing accounting, audit, tax, and business advisory services.