BAN Referral Program Client Terms and Conditions

These terms and conditions (the “Terms and Conditions”) govern the services provided by Betterment LLC (“Betterment”) when you (“you” or “Client”) elect to receive investment advisory services from a third party Advisor (“Advisor”) referred to you in connection with the Betterment Advisor Network (“BAN Referral Program,” and corresponding services, “BAN Services”) and in connection with your wrap program brokerage account with Betterment Securities (“Betterment Securities,” and such account, your “Account”) as described in the Betterment Client Agreements. You hereby acknowledge that you have received, carefully read, and agree to be bound by these Terms and Conditions.

1. BAN Services. 

BAN Services are available only to Qualifying Clients who have instructed Betterment that they wish to participate in the Betterment Advisor Network in accordance with these terms and conditions. A “Qualifying Client” is an individual, corporation, or other entity that is an account holder of at least $100,000 in assets in an Account that receives services as a part of Betterment’s wrap program. Betterment may reduce or waive the asset threshold to be considered a Qualifying Client, in its sole discretion.

When a Qualifying Client elects to participate in the Betterment Advisor Network, Betterment will provide referrals to one or more Advisors in the BAN Referral Program to serve as a potential financial advisor, such referrals based on the Advisor’s available services and the information and preferences supplied by Qualifying Client to Betterment. Advisors who participate in the Betterment Advisor Network are independent of, and not affiliated with, Betterment. 

Advisor referrals will be made by Betterment in its sole discretion, and will be based on factors including, but not limited to, the following: (1) a Qualifying Client’s cost preferences and their current level of assets under management and (2) such Client’s geographic preference and/or desire to communicate with an Advisor over teleconference (e.g., Zoom, etc.) versus communication in person. Information that you provide Betterment about your financial profile and investment objectives will be shared with referred Advisors as described below. To the extent any information you provide Betterment is incorrect or incomplete, referrals provided through the BAN Services may not meet your needs.

Betterment’s BAN Services are limited to providing referrals to Qualifying Clients, and continuing to provide the wrap program services to the Account as described in the Betterment Advisor Solutions Client Agreements. If you elect to receive services from an Advisor referred through the BAN Referral Program, Advisor will provide you with advisory services as agreed between you and the Advisor and as set forth in a separate written agreement between you and the Advisor. These services may include, among other things, (1) comprehensive financial planning services; (2) estate planning services (3) tax planning services; (4) insurance-related services; and (5) personalized advice regarding, and proactive monitoring of, BAN Advised Client’s Account. Betterment is not making a referral or recommendation of specific investments that an Advisor may recommend to you. It is up to you and the Advisor to decide what types of investments are right for you. 

You are solely responsible for the selection and oversight of your Advisor and for monitoring your Advisor’s performance. You can monitor performance in a variety of ways, including promptly reviewing your account statements and trade confirmations, meeting periodically with your Advisor to discuss your investment and any financial planning goals, and withdrawing your Advisor’s discretionary authority if you are dissatisfied with your Advisor.

Any services other than those described in this document are beyond the scope of the BAN Services, and Betterment makes no representation about any Advisor’s ability to perform any of those other services. Those services are strictly a matter between you and your Advisor. If an Advisor refers you to another third party for any services, this, also, is strictly between you and the Advisor and is beyond the scope of the BAN Services.

2. Data Sharing. 

If you choose to participate to receive BAN Services, information that you have provided Betterment about your financial situation and investment objectives will be shared by Betterment with any Advisor to whom we refer you. Such information includes, but is not limited to, name, age, state of residence, occupation, annual income, investment experience, Account assets, and investment objectives. You understand that Betterment does not independently verify any such information you provide and is not responsible for referrals made under the BAN Services based on inaccurate or incomplete information. If you provide Betterment with inaccurate or incomplete information, the BAN Referral Program may not match your needs.

Advisors are restricted from using your data for any other purpose other than as part of the referral and provision of services to you as part of the BAN Referral Program. For more details, please see Betterment’s Privacy Policy. 

3. Agreements 

You acknowledge and agree that if you elect to work with an Advisor through the BAN Referral Program, you will agree to a separate agreement that is between you and the Advisor. You acknowledge and agree that you will also become a client on the Betterment Advisor Solutions platform, and will accordingly review, agree to, and be bound by the Betterment Advisor Solutions Client Agreements. 

4. BAN Wrap Fees

Clients that receive services from an Advisor following a BAN Services referral are charged a 0.25% fee (annualized) Betterment platform fee which is applied to all assets in your account (excluding assets held with Betterment self-directed investing accounts or in Betterment Cash Reserve, if any) (the “BAN Wrap Fee”), and may be applied quarterly or monthly, as determined by the Advisor. Betterment will assess the BAN Wrap Fee your Account directly, or the Advisor may elect to have Betterment assess the BAN Wrap Fee from within its advisor fee (“Advisor Fee”) as separately agreed between you and the Advisor, such that the BAN Wrap Fee charged by Betterment and the Advisor Fee charged by your Advisor will be reflected as a single advisory fee on your statement  (the breakdown of your fees will be visible in your account Settings on the Betterment platform). 

5. Conflicts of Interest. 

Advisors have an incentive to retain Client assets on Betterment’s platform by virtue of their participation in the Betterment Referral Network and the Qualifying Client referrals that Advisors receive from Betterment. Betterment also assesses Advisors a one-time “Program Transfer Fee” equal to 3.00% of the value of the assets in the Account transferred to any non-Betterment platform or account.  For clarity, this fee is not charged to Clients and is only charged to the Advisor. Because of the Program Transfer Fee, Advisors will have an incentive to encourage you to maintain your assets with Betterment, rather than another investment platform and custodian, which would result in Betterment receiving asset-based revenue that it would not otherwise earn if you were to transfer your assets to another platform.

6. Suitability for Participation in BAN Referral Program. 

You understand and acknowledge that the Advisor, and not Betterment, is responsible for managing your Account on the basis of your financial situation and investment objectives, and that Betterment will not evaluate whether the Advisor’s services are suitable for your individual investment objectives. You understand and acknowledge that the Advisor is solely responsible for determining the suitability of investment choices for anyone who elects to use such Advisor’s services. While Betterment conducts general due diligence on advisors prior to their participation in the Betterment Advisor Network, you understand and acknowledge that Betterment is not responsible for and will not perform independent due diligence of an Advisor’s services in connection with their participation in the Betterment Advisor Network, and that no review or feedback provided by Betterment or an Advisor implies any duty to determine suitability or be construed as a waiver of the provisions of this paragraph.