Wrap Fee Program | Sunstate Bank Wealth Management
Wealth Management

Wealth Management

Wrap Fee Program

A Simplified Way to Manage Your Investments - One Transparent Fee

The Sunstate Wealth Management Wrap Fee Program provides clients with an all-inclusive approach to investment advisory services. Instead of paying separate fees for investment management, transaction costs, and custodial services, the Wrap Fee Program combines these costs into one bundled, asset-based fee.

This structure is designed to make your advisory relationship straightforward, predictable, and aligned with your financial objectives.

A couple working on their investment strategy

What Is Included in the Wrap Fee?

Participants in the Wrap Fee Program receive the following services under a single, consolidated fee:

  • Investment advice and portfolio management
  • Ongoing monitoring, rebalancing, and oversight
  • Trade execution, clearing, and settlement
  • Custody of assets through Sunstate Bank
  • Account maintenance and standard reporting
  • Electronic statements and confirmations
  • Routine administrative and recordkeeping services
  • Periodic reviews, consultations, and client meetings

Clients do not pay separate execution or transaction fees for trades executed within the program.

These items match the services listed in Item 4A of the Wrap Fee Brochure.

What Is Not Included?

Certain costs fall outside the wrap fee, including:

  • Financial planning or consulting services outside the program
  • Wire transfers, checks, or special handling
  • Foreign currency transactions
  • Account termination or transfer fees
  • Interest on margin or debit balances
  • Taxes or government-imposed fees
  • Fund-level expenses (mutual funds, ETFs, closed-end funds)
  • Non-standard custodial charges

These exclusions reflect Item 4C of the Wrap Brochure.

Program Fee Structure

The Wrap Fee is an annual asset-based fee - typically ranging between 0.30% and 1.20% - and is billed quarterly in advance, based on the value of assets in the account on the last business day of the prior quarter.

The specific fee applicable to your account will be detailed in your advisory agreement.

(From Item 4A, page 4 of the Wrap Brochure.)

Minimums and Eligibility

  • Minimum account size: $100,000
  • Sunstate Wealth may accept smaller accounts at its discretion
  • Available to U.S. persons and certain non-U.S. persons
  • Only available when custody is maintained at Sunstate Bank

(Reflects Item 5 of the Wrap Brochure.)

How the Wrap Fee Program Differs From a Standard Advisory Account

Feature Wrap Fee Program Standard Advisory Account
Advisory Fee Included Charged Separately
Trading Costs Included Charged by custodian
Custody Sunstate Bank required Various custodians
Suitable For Moderate–high trading activity Low trading activity
Conflicts Possible incentive to recommend wrap program Fewer cost-based conflicts

 

The SEC expects this type of comparison to prevent misunderstanding.

Who the Wrap Fee Program May Be Appropriate For

The program may suit clients who:

  • Prefer a predictable, all-inclusive fee
  • Expect moderate or higher trading frequency
  • Want integrated custody and advisory support
  • Prefer consolidated reporting and operations
  • Value simplicity in cost structure

(Reflects Item 5 suitability concepts.)

Who the Program May Not Be Appropriate For

The program may not be ideal for clients who:

  • Trade very infrequently
  • Use custodians other than Sunstate Bank
  • Prefer to pay transaction costs only when they occur
  • Have investment strategies with limited activity
  • Want specialized or complex non-standard services

The Wrap Brochure emphasizes that trading frequency, account size, and service expectations influence suitability.

A woman working on her laptop

Required Custody With Sunstate Bank

To participate in the Wrap Fee Program, clients must maintain custody of their assets with Sunstate Bank, an affiliate of Sunstate Wealth Management.

Sunstate Bank provides:

  • Custody
  • Trade execution
  • Clearing and settlement
  • Statement delivery

Sunstate Bank receives a portion of the wrap fee for its custodial and execution services.

(As described in Item 4A of the Wrap Brochure.)

 

Portfolio Management Approach

All portfolio management under the program is conducted directly by Sunstate Wealth Management and its investment adviser representatives.

The firm does not use external portfolio managers in the wrap program.

Portfolio management is based on:

  • Client goals and risk tolerance
  • Strategic and tactical asset allocation
  • Use of stocks, bonds, ETFs, mutual funds, and other securities
  • Periodic monitoring and rebalancing
  • Written investment policy statements

(From Item 6 of the Wrap Brochure.)

Conflicts of Interest

The wrap fee structure creates certain conflicts that clients should understand:

  • Advisers may earn more under the wrap fee than under separate fee arrangements
  • There is an incentive to recommend the wrap program over standard advisory services
  • Lower-trading clients may pay more in a wrap program than in a transaction-based account
  • Sunstate Bank receives a share of the wrap fee, creating an affiliate-based conflict

These conflicts are disclosed in Items 4B and 4D of the Wrap Brochure .

Sunstate Wealth addresses these conflicts through fiduciary duty, supervisory oversight, and clear disclosure.

A wealth management professional discusses options with a client

How to Get Started

Your onboarding will include:

  1. A discussion of your financial goals and risk tolerance
  2. A review of whether the Wrap Fee Program is suitable
  3. A detailed fee schedule and required documentation
  4. Setup of custody at Sunstate Bank
  5. Ongoing reviews and updates to your strategy
Your investment adviser representative will guide you through each step.

Important Disclosures

Advisory services are offered through Sunstate Wealth Management, LLC, an SEC-registered investment adviser. Registration does not imply a specific level of skill or training.

Sunstate Wealth Management and Sunstate Bank are affiliated but operate as separate legal entities.

INVESTMENT PRODUCTS ARE:

  • NOT FDIC INSURED
  • NOT BANK GUARANTEED
  • NOT A DEPOSIT
  • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
  • MAY LOSE VALUE

 

Required Regulatory Documents