Broker Check

Verbatim & XYPN Sapphire

Why you might see "XYPN" mentioned alongside Verbatim, and what it actually means for you.

I'm the only person at Verbatim. That's by design. But a one-person firm still needs compliance oversight, trading infrastructure, and operational support running in the background, and building all of that from scratch is a distraction from the work I actually want to do with clients.

That's why I operate under XYPN Sapphire, the premier support tier of the XY Planning Network. XYPN is a nationwide community of more than 2,000 fee-only fiduciary advisors, and under Sapphire, my firm's registration sits with their RIA, XY Investment Solutions, LLC, while they handle compliance, trading, and back-office operations for me.

What that means for you, in practice:

  • I'm still your only point of contact. XYPN's support works behind the scenes, for me, not for you. You'll never be handed off to someone else on their team.
  • Your accounts are held at Schwab, or Altruist for a smaller number of accounts. Those firms are the custodian and broker: they hold your assets and execute trades, and they're required by the SEC to keep your money properly segregated and protected.
  • I remain a fiduciary at all times, required to act in your best interest. XYPN's oversight doesn't change that; it backs it up.
  • You get the benefit of a firm with real infrastructure, without paying for the overhead of a large firm or losing the fact that you're working with me directly.

A few terms you might come across

If you read my Form ADV or hear these terms elsewhere, here's what they mean:

  • RIA (Registered Investment Adviser): The legal entity that registers with the SEC, files the required paperwork, and is authorized to provide investment advice for a fee. My firm operates under XY Investment Solutions, LLC.
  • IAR (Investment Adviser Representative): That's me. I'm the person who works with you directly, on behalf of the RIA.
  • Custodian: The firm that actually holds your accounts and assets. For my clients, that's Schwab, or Altruist for a smaller number of accounts.
  • Broker: The entity that executes trades in the market. Schwab and Altruist serve this role too.
  • TAMP (third-party asset management platform): The part of the infrastructure that executes trades and implements the investment policy we build together. This is handled by XYPN's investment team, not by me directly, but the strategy is still ours.

Read the full XYPN Sapphire overview and definitions (PDF)

Have a question about how this works? Contact Verbatim Financial