Hi everyone, 

 

MKN Wealth Management, LLC has just completed a seven month audit by the DC DISB Examiners’ office and passed with flying colors!  DC Audits are not a scheduled event, and MKN is required to be prepared at any given moment for an in-depth examination. MKN was contacted in early May,2020 and asked to respond to rigorous questions on the following: 

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1.    Recordkeeping of client information, questionnaires, statements, and documents to prove MKN clients have given MKN permission to manage their portfolios were requested for the last four years. MKN was able to readily provide what the DC DISB requested, reviewed, then asked for again!  No discrepancies were found.

 

2.    Detailed questioning on MKN’s handling of all transactions:  trading practices, wiring funds, journaling funds, and showing client authorization for every event. MKN was found to be above standard on these practices, as I do not have custody of any client funds, nor do I have authorization to write checks or wire money for clients without their authorization.  MKN works with Schwab to guard against all types of fraudulent activity.

 

3.    MKN Investment Agreements, which are signed when opening your accounts with me, were scrupulously reviewed. The intent of so much diligence was to insure all clients signed an agreement, and that the document contains all necessary information.

 

4.    The MKN Billing process was examined for months.  Billing calculations and processes were questioned endlessly. DC’s effort here is to insure MKN is not charging excessive fees, or taking money from client accounts.  The fees  withdrawn from client accounts quarterly must match the  fee withdrawn from the account to the penny. And it must match the fee percentage on the client investment agreement. MKN was able to explain our billing process and calculations, writing out each step of how a client is billed and their fee calculated.  Bridge Financial, my fintech team, helped immensely by proving the technology we use guards against fraud and operates honestly.

 

5.    Transparency to clients is of utmost importance. You receive a copy of all MKN documents each year:  The ADV’s, Written Supervisory Policy and the Privacy Policy. They explain in detail “who, what, where, when and how” MKN operates all facets of its investment firm. DC DISB approved our final documents, agreeing that they fully disclose all important information to clients.

 

6.    MKN’s own checking account and its activity were reviewed over and over.  DC searched for suspicious activity and I am proud to say, they found none!  I am fully aware of the fraudulent practices that do exist way too often, MKN would not engage in any kind of fraud or illegal activities under any circumstances.

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There are many more examples of tests that MKN was put through the last seven months, too numerous and itemized to go through them all!  I wanted you to know that MKN completed this examination with honest business practices, following SEC and DC regulations, extensive record keeping and most importantly, knowing my clients well.  I take these rigorous and long examinations very seriously, as they put MKN practices to the test, and I want to always be above standard for my clients. MKN has been a regulatory success over the years, and I plan on upholding these  high standards. Thank you for the opportunity to earn your investment business and your trust!  Please email or call me anytime with questions or concerns about the audit or your portfolios!

 

Best, 
Kathleen 

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