Gerri
ZOE...the good, the bad and the ugly
The ZOE advisor I spoke with was excellent with deep knowledge about all the topics we discussed. However, when we discussed compensation, asset management and where our funds would be held, they kept mentioning a firm called APEX. This is fine I guess, but I really have never heard of them. I did some more research and it turns out ZOE has a relationship with APEX. I questioned the advisor and she broke down and shared that ZOE actually makes more money if we move our money to APEX. We initially wanted to keep our accounts at Fidelity. Isn't this a conflict of interest? I found all this buried deep within their disclosure documents on the SEC website. I did not find this a FIDUCIARY gesture. I did not see where to respond to the ZOE response below. Thank you for the prompt response ZOE. But with all due respect, you did not address what my ZOE advisor said about ZOE making more money if we move our funds to APEX....IS THIS TRUE? Does ZOE make more money if we move our funds to Apex? According to solicitor agreement I found on your site, you do. I truly appreciate your candor as we decide to work with ZOE, this advisor or not. Hi Alex, thank you so much for a prompt response and trying to resolve this. I would prefer to keep our communications on a public platform to help each of us remain accountable. I respect that ZOE has to get paid for all the time, effort & resources in offering a platform to match the public with reputable advisors. I have reviewed your website many times and that is clear. My understanding, according to your website, is ZOE receives the so called "solicitor fee" from the advisor. We as clients never experience this. The larger question is that if ZOE acts as a fiduciary, as your website suggests, then can you answer yes or no, Does ZOE make more money (in the form of the solicitor fee) if we as clients move our funds to this APEX company the advisor mentioned? I don't understand why they would tell us this if there were no truth in it. I appreciate your honesty more than you know.
Response from Zoe FinancialFeb 21, 2024
Hi Gerri, We really appreciate your feedback. One of Zoe’s core pillars is to put the clients first in all interactions, particularly by ensuring advisors in the Zoe Network uphold their fiduciary duty. There is no obligation to work with APEX as a custodian when using Zoe to find an advisor. While there are potential benefits and costs associated with specific custodians, the advisor ought to help you make the best choice for you! We apologize that this was unclear when speaking with the advisor. Your feedback is heard and we will improve our client-advisor communications as a result; thank you! ------------------------------ Hi Gerri, thanks for your updated review. My email is [email protected] if you’d like to email me directly. I’d be happy to answer any additional questions! There are no additional fees for you as a client if you choose to custody your assets at either Apex, Fidelity, Schwab, or others as your custodian. There is a platform fee that the advisor pays out of his/her total advisory fee to Zoe for using the platform. The reason for charging the platform fee is that our platform allows the advisor to support their clients via digital onboarding, trading, rebalancing, billing and other functionalities.That fee is not passed onto you as the client. To be clear, when interviewing an advisor from the Zoe Network, you do not need to move your funds to Apex via the Zoe Wealth Platform. You have the freedom to choose the custodian that you are most comfortable with and your advisor could guide you choose the right one for you. ----------------- Hi Gerri, Totally understand, and I am happy to help. No, Zoe does not receive any higher solicitor fees if you as a client choose to utilize Apex as a custodian. Thank you! Alex