Paul Tramontano First Republic Is The Boastful Financial Advisor?
When you’re looking for wealth managers in Greenwich, Connecticut, you might come across many advisors, including Paul Tramontano, First Republic. However, unlike most fiduciaries available in the market, this one isn’t someone you can trust easily.
Paul and his team make plenty of boastful claims about their expertise and services. However, the firm’s disclosures suggest that it doesn’t care much about its clients and their financial success. Instead, it only cares about its growth and the ways it can take funds away from its clients.
Hence, before you consider working with Paul Tramontano, you should go through the shady provisions present in his terms and conditions. This would help you make a well-informed decision about the advisor:
About Paul Tramontano First Republic
Paul Tramontano is a financial advisor based in Greenwich, Connecticut. His address is 56 Mason St, Greenwich, CT 06830, US. Paul is a part of First Republic and claims to offer customized solutions for the unique requirements of every client.
He joined First Republic Investment Management in 2015 and prior to that, he used to work at Constellation Wealth Advisors. At First Republic, Paul is a senior managing director and wealth manager.
There isn’t any additional information available on Paul and his services. Even though he claims to help his clients succeed, his terms and conditions tell a different story. According to his disclosures, Paul cares more about his finances than his clients’ financial requirements.
Moreover, he tries his best to hide these provisions from his current and prospective clients. I have gone through his past disputes as well as the problematic provisions in his terms and conditions in the next section of my review.
Did You Know?
A wealth manager provides comprehensive personal finance services to high net-worth clients. A wealth manager is responsible for enhancement of net-worth of its clients.
Disputes with Clients and Predatory Provisions
Paul Tramontano’s $65,000 Dispute
Before you start working with any financial advisor, you should look them up on FINRA BrokerCheck, a vast database where you can find all the crucial information about an advisor. You can learn about the exams your advisor has passed, the years of experience they have, the state licenses they possess, and the legal disputes they have had in their career.
The FINRA BrokerCheck profile of Paul Tramontano shows one legal dispute, which occurred in 2003. Here, the client alleged that there were unsuitable investments and the advisor violated fiduciary duty in an IRA account. Furthermore, the complaint alleged that the corporate respondent is guilty of failing to supervise the individual respondent.
Paul’s client had requested $65,000.00 in damages but his firm took no action on this matter.
Keep in mind that it’s very difficult to have a dispute with your advisor end in your favor. That’s because many wealth managers make their clients sign detailed waivers which free them from any accountability.
This is why you should go through the agreements thoroughly when you start working with an advisor. If your advisor gives you unsuitable advice and you follow it, it would be extremely difficult to win a dispute against the advisor. The advisor can claim that you understood all the risks when you started investing with them.
Paul Tramontano isn’t the only financial advisor who uses this tactic. Another notorious advisor who uses this method to get away with misrepresentation and unsuitable recommendations is Peter Arbogast Merrill Lynch.
Charging Performance-based Fees
A huge red flag that Paul tries to hide from his clients is that he charges performance-based fees, a highly notorious practice in the finance industry. Charging performance-based fees incentivizes the advisor to implement high-risk strategies regardless of their suitability for the client.
High-risk strategies are detrimental to most portfolios but they are particularly harmful for portfolios that want low risks and long-term growth. Such strategies can cause you significant losses in down markets because of their volatile nature.
When an advisor charges performance-based fees, their pay increases according to the performance of their fund. So, if their fund shows more growth in a small time period, they can charge more.
This gives them the incentive to double down on the risk, leading to poorer returns for the clients. If you’re saving for retirement or are planning to create an education fund, a performance-based fee structure would be a terrible choice for you.
Trading Recommended Securities
Paul can trade the investments he recommends to his clients. This doesn’t necessarily mean that he buys the same security you buy. Instead, it means that he can sell the security to you and make an extra profit.
Trading recommended securities lead to numerous conflicts of interest. It makes things particularly difficult for clients with large portfolios because such advisors can abuse their funds to manipulate the performance of certain securities for their personal profits.
If you’re a client of Paul Tramontano, you can ask which securities he trades for himself.
The $50,000+ dispute and the shady provisions in his terms and conditions show that Paul Tramontano is not a reliable choice for most investors. You should be extremely cautious while working with such advisors as they put you in problematic situations through their jargon.
His provisions also suggest that he doesn’t care about his clients and their growth. If you’re looking for a skilled wealth manager on whom you can rely for your future financial growth, you should avoid Paul Tramontano. There are plenty of fiduciaries in Greenwich, so you don’t have to stick with the one that has so many issues.
Paul Tramontano has faced a $50,000+ dispute from his client. Also, he has multiple shady provisions in his disclosures that incentivize his firm to ignore your goals and requirements. Avoid such advisors at all costs!
- $50,000+ dispute with a client
- Charging performance-based fees
- Trading recommended securities