VFA is dually registered as an SEC-registered investment adviser and broker dealer with its principal
place of business located in Windsor, Connecticut. VFA began conducting business as an investment
adviser in 1994. VFA, through predecessor firms, began conducting business as a broker-dealer in 1968.
Please note that being registered with the SEC does not imply a certain level of skill or training. Listed
below is the Firm's principal shareholder (i.e., those individuals and/or entities that control 25% or more of
VFA). Throughout this Brochure, clients of the firm that utilize investment advisory services may be
referred to as either “you” or “Client.”
• Voya Holdings, Inc., 100% Shareholder
In addition, the following affiliates indirectly own 25% or more of VFA:
• Voya Financial, Inc., a publicly traded company and the sole shareholder of Voya Holdings, Inc.
VFA offers the following investment advisory services through its associated or access persons, who are
also known as Investment Adviser Representatives ("IARs").
Your IAR does not have the ability to withdraw cash from your account without your express
authorization.
Unless specifically stated, you may make additions and withdrawals from your account at any time. If
your account falls below the minimum required account value, VFA may terminate your account. You
may add securities to your account. However, VFA reserves the right to not accept particular securities
into your account.
The value of financial investments rises and falls, and no financial plan can guarantee results.
Accordingly, VFA cannot guarantee future financial results or the achievement of your financial goals
through implementation of a financial plan or any advice or recommendations provided to you. VFA does
not monitor the day-to-day performance of your specific investments. As with any investment program,
you can lose some or all of your money by investing through VFA’s investment advisory programs.
If your financial situation changes, including your goals and objectives, it is important that you let your IAR
know as soon as possible.
Client’s understanding of the ability to tolerate market fluctuations is important in designing any
investment portfolio. Accordingly, it is important for the Client to identify to Client’s IAR the Client’s ability
to tolerate the uncertainties, complexities and volatility inherent in the investment market.
A risk profile is developed under each program based, in part, on data the Client furnished to the IAR,
including information about his or her time horizon, investment goals, and other factors. Some of the
factors that influence the Client’s risk tolerance assessment include but are not limited to present financial
condition, financial ability to accept risk, future financial goals, discretionary income and its variability, and
willingness to accept volatility. These factors, combined with the Client’s personal risk profile, indicate the
Client’s ability to accept investment risk to meet long-term financial goals. The Client understands that
higher returns often involve more volatility and a willingness to tolerate declines in the value of the
portfolio to achieve those returns. The Client risk profile is reflected on the Client’s Agreement with VFA,
the Investment Policy Statement, and Risk Tolerance Questionnaire, which will be reviewed with the
Client annually.
VFA makes a variety of financial products from a number of product sponsors available on its product
shelf and through its investment advisory programs. For a financial product to be included on VFA’s
product shelf, the product sponsor is, subject to certain exceptions, generally required to participate in
VFA’s Product Partners Program, as described in Item 14. VFA reserves the right to not include product
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sponsors on its product shelf, therefore not permitting you to purchase the products of certain product
sponsors through VFA, if the product sponsor does not participate in the Product Partners Program. This
creates a conflict of interest, as VFA chooses which products to make available to you based on the
compensation paid to VFA by the sponsors of those products. This conflict results in VFA recommending
financial products and services to you that are more expensive than similar products and services you
could obtain elsewhere.
Additionally, VFA will consider the entirety of the product sponsor’s relationship with VFA and VFA’s
affiliates in determining whether to place, or to continue to offer, a product sponsor’s products on VFA’s
product shelf. This creates a conflict of interest, as part of VFA’s determination as to whether to offer a
product to you for sale depends, in part, upon the business and monetary considerations of the product
sponsor’s relationship with VFA and its affiliates. This conflict results in VFA recommending financial
products and services to you that are more expensive than similar products and services you could obtain
elsewhere.
VFA policy makes certain share classes of mutual fund products available on its investment advisory
platform, as opposed to other share classes of the same product. The share classes VFA makes
available on its investment advisory platform are selected because such share classes provide
compensation to the Firm. Other share classes, such as certain R Share classes generally (defined
below), do not provide additional compensation to the Firm. You are able to purchase the same or other
similar products that the Firm offers at other investment advisers, and such investment advisers will make
available lower cost share classes of those products to you. For example, in certain circumstances, VFA
offers retirement share, or “R Share” classes to retirement plan customers, where available, and if the
requirements for use of such class in the product’s prospectus or statement of additional information are
met, but does not offer R Share classes to non-retirement plan customers, despite R Shares being
available, in certain circumstances, to non-retirement plan customers and generally being less costly than
the share classes VFA offers to investment advisory customers. Other mutual fund share classes, such
as “clean shares” are also available but not used by VFA because such mutual fund share classes do not
pay additional revenue to VFA. Such other share classes are available to you through other investment
firms, which would result in lower cost to you. Similarly, investment advisory services fees charged by
other investment advisers may be similar to or lower than the fees that VFA charges.
Different share classes of the same mutual fund represent the same underlying investments. However,
since different share classes have different costs, the overall costs of owning each share class differ. This
means that one share class of a particular mutual fund will be more costly than other share classes of the
same fund over time. This increased cost negatively affects the investment return for that particular share
class over time.
VFA’s ability to offer you mutual funds and other products is limited by the availability of those products,
including different share classes of the same mutual fund, through Pershing, LLC (“Pershing”), the Firm’s
clearing broker-dealer. Other investment advisers, including but not limited to investment advisers
available through VFA’s third party money manager programs discussed in this Item 4, through their
clearing broker-dealer, offer different share classes of the same mutual funds, as well as other investment
products, for a lower cost.
VFA policies make certain financial products and account types available to clients only in the Firm’s role
as a broker-dealer, for which it receives commissions. Other registered investment advisers may offer
such financial products in an investment advisory account, shares of which may be purchased net of
commission, resulting in more shares to the customer than if the same product is purchased through the
Firm on a commission basis. Purchasing such products through the Firm in its role as broker-dealer will
result in the client receiving fewer shares for the same purchase price than the customer would receive if
purchased in an investment advisory account. Clients will receive lower investment returns over the short
term, and incur higher execution costs due to the Firm’s policy, as compared to the same financial
product held in an investment advisory account. In certain scenarios, a client will pay more fees and
expenses over the course of holding the product by purchasing it from VFA in its capacity as a broker-
dealer than the client would pay if the product had been purchased in an investment advisory account.
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Since offering such financial products only in the Firm’s capacity as a broker-dealer creates a conflict of
interest, the Firm has an obligation to notify clients of, and to obtain informed consent for, these types of
recommendations at the time of sale. VFA does not owe clients a fiduciary duty in circumstances when it
offers clients products in its role as a broker-dealer.
SELECT ADVANTAGE ADVISORY IRA
The Voya Select Advantage Advisory IRA Program is an individual retirement account program offered
through VFA in which trading and custodial services are provided by Voya Institutional Trust Company
(VITC) and administrative and recordkeeping services are provided by Voya Retirement Insurance and
Annuity Company (VRIAC). VFA and the IAR assigned to the account provide non-discretionary
investment advice regarding investments in the Client’s account. Both VRIAC and VITC are affiliated
companies of VFA.
The Voya Select Advantage Advisory IRA Program offers the Client a range of mutual funds in which to
invest. The mutual funds are contained in a mutual fund custodial account custodied by VITC. VRIAC
performs all administrative and recordkeeping services in the mutual fund custodial account, including
effecting transactions in the mutual fund custodial account, and performing accounting services, fee
calculations and fee deductions.
VFA and the IAR assigned to the account will provide account services for the Voya Select Advantage
Advisory IRA Program, including an initial consultation to determine the Client’s financial situation and
investment objectives. Based on the Client’s financial situation, goals, objectives, and other information
provided by the Client, the Client will be provided with investment recommendations and periodic
investment related services in connection with assets in the account. Client understands and agrees that
Client is not obligated to follow any investment recommendations made by VFA or IAR.
Transactions (mutual fund rebalancing, purchases, sales exchanges and liquidations) in the account
initiated upon advice by the IAR will be executed on a non-discretionary basis, meaning that the IAR must
obtain the Client’s prior authorization before entering any such transaction. The prior sentence does not,
however, apply to automatic rebalancing transactions effected in accordance with Client’s elections in the
Voya Select Advantage Advisory IRA Application.
INVESTMENT SUPERVISORY SERVICES
MODEL PORTFOLIO MANAGEMENT*
*Please note that the Morningstar Wealth Management and Morningstar Wealth Management Tax
Sensitive Model Portfolio programs are closed to new investors outside of the Unified Managed Account
Program.
Morningstar Wealth Management and Morningstar Wealth Management Tax Sensitive Model
Portfolio Program and Voya Global Perspectives Market Models Series, Select Adviser Series
Program and Unified Managed Account Program
Morningstar Wealth Management and Morningstar Wealth Management Tax Sensitive Model
Portfolio Program
VFA has an agreement with an unaffiliated, independent investment adviser, Morningstar Investment
Management, LLC. ("Morningstar"), to provide model portfolio allocations to VFA in two programs: (1) the
Morningstar Wealth Management Program and (2) a tax-sensitive version known as the Morningstar
Wealth Management Tax Sensitive (collectively, "Morningstar Wealth Management Program").
Morningstar also provides capital market assumptions to VFA at no additional cost as part of the suite of
services provided.
Morningstar selects the investment options included in the Morningstar Wealth Management Program
from a universe of investment options that VFA makes available for the Program. Morningstar constructs
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and manages the Tax Sensitive Program with the objective to seek to maximize portfolio return while
managing risk and attempting to minimize the effect of taxation.
Each model portfolio is designed to meet a particular investment goal (i.e. income, growth and income,
growth or aggressive growth), as well as tax considerations. The IAR and the client discuss a client's
particular circumstance and establish goals and objectives. The IAR helps determine the client's
individual objectives, time horizon, risk tolerance and liquidity needs. The IAR then helps the client to
develop an IPS that results in the recommendation of a model portfolio that is suitable for the client.
Once the model portfolio is recommended to the client, the client’s account is managed based on the
overall model, rather than specifically to each client's individual needs. Clients give VFA limited trading
discretionary authority to execute trades, without the client's prior approval for each trade, in accordance
with Morningstar’s model portfolio allocations. Clients will have the opportunity, subject to a non-
negotiable $5,000 administrative fee as described in Item 5, to place reasonable restrictions on the types
of investments to be held in their account. Clients retain individual ownership of all securities.
Voya Global Perspectives Market Models ("GPMM")
GPMM is a portfolio management service that offers model asset allocation portfolios (“GPMM Models”)
for clients to choose from (i.e., income, growth and income, growth or aggressive growth). The GPMM
strategy is available through either open-end mutual funds or Exchange Traded Funds (“ETFs”).
Mutual Fund Series
In the GPMM – Mutual Fund Series, clients invest exclusively in mutual funds. The vast majority
of mutual funds included in the GPMM – Mutual Fund Series are selected from the Voya family of
mutual funds (“Voya funds”). In certain situation, a non-Voya fund may be used in the program.
Voya Investment Management (“Voya IM”), an affiliate of Voya, is the strategist for each of these
GPMM Models (the “Voya IM Strategist”). In making its fund selections, the Voya IM Strategist
generally chooses from the Voya funds. However, it is possible that non-Voya funds will be
selected if the Voya funds fail to meet a particular investment need of the GPMM – Mutual Fund
Series. The Program relies on a set of predetermined rules to make any changes or modifications
to or to rebalance the GPMM – Mutual Fund Series Models.
Voya IM serves as the adviser to Voya funds and receives a management fee from each fund;
these management fees are in addition to any fee paid by the client. Additionally, in some cases
Voya IM acts as sub-adviser for certain of the non-Voya funds selected for the GPMM – Mutual
Fund Series, and will receive sub-management fees from those funds as to which it acts as a
sub-adviser. This creates a conflict of interest, as it incentivizes Voya IM to select Voya funds,
and non-Voya funds that pay Voya IM sub-management fees, for inclusion in the GPMM Mutual
Fund Series. Fund company sponsors whose mutual funds are included in the GPMM – Mutual
Fund Series are required to participate in VFA’s Product Partner Program as a prerequisite to
inclusion in the GPMM – Mutual Fund Series. This creates a conflict of interest, as the array of
mutual funds available to you in the GPMM – Mutual Fund Series are limited to those that pay
fees to VFA under the Product Partners Program, as discussed in Item 14.
Participation in the GPMM – Mutual Fund Series is not necessary to purchase Voya funds, which
can be purchased separately. Additional information about each fund in the GPMM – Mutual
Fund Series is available in the fund prospectus, and additional information about the GPMM –
Mutual Fund Series is available in the GPMM – Mutual Fund Series Schedule 1.
ETF Series
In the GPMM – ETF Series, clients invest exclusively in ETFs. Voya IM, an affiliate of Voya , is
the strategist for each of these GPMM – ETF Series models (the “Voya IM Strategist”). In making
its selections, the Voya IM Strategist chooses from a list of approved ETFs. The Program relies
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on a set of predetermined rules to make any changes or modifications to or to rebalance the
GPMM – ETF Series models.
The IAR and the client discuss a client's particular circumstances. The IAR helps the client determine his
or her goals and objectives, time horizon, risk tolerance and liquidity needs. The IAR then helps the client
to develop an IPS that results in the recommendation of an investment portfolio that includes GPMM –
Mutual Fund Series Models or ETF Series Models. Generally, GPMM Accounts are managed by Voya IM
based on the overall model, rather than on each client's individual needs. Clients, nevertheless, may
impose reasonable restrictions on the assets in the Program, provided however, that VFA may refuse to
accept or to continue to provide investment advisory services with respect to such program assets, as the
case may be, if it determines such restrictions are unreasonable. Clients retain individual ownership of all
securities.
With respect to GPMM, the portfolio is automatically rebalanced on a quarterly basis so that the
percentages invested in each fund are adjusted to approximate the percentages invested in each fund
initially; this may entail reducing the investment in certain funds and increasing the investment in others.
With respect to the GPMM ETF Series, rebalancing occurs quarterly when a position increases or
decreases by 5% or more, subject to a $250 trade minimum. With respect to the GPMM Mutual Fund
Series, rebalancing occurs quarterly when a position increases or decreases by 5% or more and is not
subject to a minimum trade restriction.
In addition, on a quarterly basis, tactical adjustments occur when year-over-year earnings growth of
companies in the Standard & Poor’s 500 Index change from positive to negative - half of the equities are
sold and reinvested in fixed income Mutual Funds or ETFs; if earnings growth changes from negative to
positive - the portfolios are restored to their original allocation. Client acknowledges that these
transactions are part of the GPMM Series and provides authorization to implement these rules-based
transactions on Client’s behalf on a quarterly basis.
In certain situations, such as when a mutual fund or ETF closes or when a portfolio manager departs,
Voya IM may replace the fund or ETF with another appropriate investment provided the management fee
and other compensation paid to Voya IM and its affiliates from the new investment is no greater than that
paid from the investment being replaced.
Under GPMM, neither VFA nor its affiliates have discretion over client's decision to invest a particular
model. The final decision to select and invest in a portfolio managed by Voya IM is made by the client.
Furthermore, with respect to the portfolio managed by Voya IM, neither VFA nor its affiliates is acting as a
fiduciary within the meaning of the Employee Retirement Income Security Act of 1974 (“ERISA”) or the
Internal Revenue Code of 1986.
Voya Choice Advisory*
*Please note that the Voya Choice Advisory program are closed to new investors.
Voya Choice Advisory, which includes Voya Opportunity Choice Advisory, is referred to as "Voya Choice."
Voya Choice is an asset allocation program managed by the Investment Selection Committee ("ISC").
The ISC uses model asset allocations provided by Morningstar as the basis for developing model
portfolios. The model asset allocations are defined in terms of risk from conservative to aggressive.
Morningstar also provides capital market assumptions to VFA at no additional cost as part of the suite of
services provided.
The ISC periodically reviews the investment options available in the model portfolios. Investment
selections in each model portfolio are reviewed using information such as performance, risk, risk-adjusted
performance, style, consistency and expenses. Upon review, the ISC makes specific recommendations of
investment options for the model portfolios. The investments in the model portfolios for Voya Choice are
selected by the ISC from a menu of approximately 225 mutual fund families, as well as other possible
investments.
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The IAR and the client discuss a client's particular circumstance and establish goals and objectives. The
IAR helps determine the client's individual objectives, time horizon, risk tolerance and liquidity needs. The
IAR then helps the client to develop an IPS that results in the recommendation of a model portfolio that is
suitable for the client. Once the model portfolio is recommended to the client, the portfolio is managed
based on the overall model, rather than specifically to each client's individual needs. The IAR must have
verbal authorization from the client to execute each recommendation made.
Clients will have the opportunity, subject to a non-negotiable $5,000 administrative fee as described in
Item 5, to place reasonable restrictions on the types of investments to be held in their account.
The Fidelity Program
The Voya Asset Management Program through Fidelity Investments is referred to as the "Fidelity
Program." The Fidelity Program is a non-discretionary managed account program offered only to
participants in certain retirement plans where a Voya company does not have a product offering available
to the plan. As a general matter, the Fidelity Program is not open to new plans.
The IAR and the client discuss a client's particular circumstance and establish goals and objectives. The
IAR helps determine the client's individual objectives, time horizon, risk tolerance and liquidity needs. The
IAR then helps the client to develop an IPS that results in the recommendation of an asset allocation that
is suitable for the client. Once the asset allocation is recommended to the client, the portfolio is managed
based on the overall model, rather than specifically to each client's individual needs. Mutual funds
available through Fidelity Investments are used to fulfill the recommended asset allocation. Client
transactions may be executed through the retirement plan and/or through a brokerage account
established with Fidelity Investments. Clients sign a limited written trading authorization allowing the IAR
to execute Fidelity mutual fund transactions in the client's account. Transactions are executed through
Fidelity Investments using its Wealthscape system. Fidelity Management Trust Company, 82 Devonshire
Street, Boston, MA 02109 is the custodian for these accounts.
Select Adviser Series Program*
*Please note that the Select Adviser Series Program is closed to new investors.
VFA also sponsors the Select Adviser Series Program ("SASP Program"), a wrap fee program. A wrap
fee program is an advisory program under which a specified fee or fees, not based directly on
transactions in the client's account, is charged for advisory services. Services may include portfolio
management or advice concerning the selection of other investment advisers, and the execution of client
transactions and custody of program assets.
Through the SASP Program, clients are provided with portfolio management services using model asset
allocation portfolios or separately managed accounts that offer single investment disciplines or may
combine multiple investment disciplines and investment options in a single portfolio. Investment portfolio
options include, but are not limited to, mutual funds, exchange-traded funds (“ETFs”), stocks and bonds.
VFA provides clients with advice, custodial, trade execution and related services for a single asset-based
fee. The SASP Program is designed to coordinate the client's overall investment management process.
VFA has selected certain affiliated and unaffiliated asset managers to participate in the SASP Program
(the “Strategists”). An affiliate of VFA, Voya Investment Management (“Voya IM”), is the affiliated
Strategist (the "Affiliated Strategist"). Additionally, VFA has selected unaffiliated Strategists ("Unaffiliated
Strategist"). VFA has authorized the Strategists to develop and manage model portfolios (“Model
Portfolios”). The Model Portfolios are administered by VFA using a third party technology platform. Each
Model Portfolio is designed to meet a particular investment goal.
The SASP Program is managed by the Strategist based on the portfolio’s goal, rather than on each
client’s individual needs. Clients, nevertheless, may impose reasonable restrictions on investing in certain
securities, types of securities, or industry sectors, provided, however, that VFA may refuse to accept or to
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continue to provide investment advisory services with respect to such program assets, as the case may
be, if it determines such restrictions are unreasonable or impracticable.
For additional details on the SASP Program please review VFA's Form ADV Part 2A, Appendix 1 Wrap
Program Brochure, which is available upon request from your IAR or from VFA.
Unified Managed Account Program and Investor Channel Unified Managed Account Program
VFA sponsors the Unified Managed Account Program and the Investor Channel Unified Managed
Account Program (together, the "UMA Programs"), which are wrap fee programs. A wrap fee program is
an advisory program under which a specified fee or fees, not based directly on transactions in the client's
account, is charged for advisory services. Services may include portfolio management or advice
concerning the selection of other investment advisers, and the execution of client transactions and
custody of program assets.
Through the UMA Programs, clients are provided with investment services from the IAR and/or
Independent Investment Strategists (“IIS”). Through the use of IISs, the UMA Programs offer the ability to
combine multiple investment disciplines and investment options in a single account. Each account may
contain multiple sleeves, including sleeves managed by affiliated or unaffiliated IISs (“IIS Sleeves”). VFA
has limited discretionary trading authority as it relates to adhering to changes in the IIS Sleeves, if
authorized by the Client. Investment options include, but are not limited to, mutual funds, fixed income
securities, exchange-traded funds (“ETFs”), separately managed accounts, model portfolios, stocks and
bonds. VFA provides clients with advice, custodial, trade execution and related services for a single
asset-based fee. Trades will be executed by VFA and cleared through Pershing LLC.
Your IAR will assist you in determining an appropriate investment strategy to follow. VFA will generally
rebalance your account quarterly, whenever the portfolio and/or investments within a sleeve fall outside of
certain allocation parameters.
IIS Sleeves are managed by the IIS(s) based on the portfolio’s goal, rather than on each client’s individual
needs. Clients, nevertheless, may impose reasonable restrictions on investing in certain securities, types
of securities, or industry sectors, provided, however, that VFA may refuse to accept or to continue to
provide investment advisory services with respect to such program assets, as the case may be, if it
determines such restrictions are unreasonable or impracticable.
The Unified Managed Account Program offers the option to permit VFA, through its IAR to exercise
discretion in moving client balances in the Unified Managed Account Program among unaffiliated IIS
Sleeves without client’s prior consent. This discretionary authority is in addition to the limited discretionary
trading authority to adhere to changes in the IIS sleeves
described in this section. The complete terms of
VFA and its IAR’s discretionary authority with respect to client’s Unified Managed Account Program
account is contained in the Unified Managed Account Program agreement
The Investor Channel Unified Managed Account Program is available through VFA’s phone-based IARs.
It offers less IISs than the Unified Managed Account Program. Unlike in the Unified Managed Account
Program, where IARs are paid a portion of the investment advisory fees charged to the client, phone-
based IARs are employees of Voya Financial, Inc., and earn a salary and incentive payouts, as described
in Item 14, rather than an advisory fee. This creates a conflict of interest, as it incentivizes VFA to offer
the Investor Channel Unified Managed Account Program to clients, which limits investor choice in IISs
and permits VFA to retain a higher amount of investment advisory fees than in the Unified Managed
Account Program.
For additional details on the UMA Programs please review VFA's Form ADV Part 2A, Appendix 1 Unified
Managed Account Wrap Program Brochure, and VFA's Form ADV Part 2A, Appendix 1 Investor Channel
Unified Managed Account Wrap Program Brochure, both of which are available upon request from your
IAR or from VFA.
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Voya Digital AdviserTM
VFA sponsors Voya Digital AdviserTM, an online digital advice wrap fee program (the “VDA Program”).
The VDA Program is a limited digital advice tool that provides clients with the recommendation of a model
portfolio managed by an Independent Investment Strategist (“IIS”). Each account is assigned an IAR.
While the IAR will not participate in the recommendation of the model portfolio, he or she is available to
answer questions related to opening a VDA Program account and client’s investment through VDA. IAR
will offer to, and if accepted, meet at least once annually with the client to discuss client’s investment
objectives, risk tolerance, goals, and other factors to help ensure that investment through VDA continues
to meet the client’s needs.
In recommending a model portfolio to you, VDA obtains your responses to questions that gauge your risk
tolerance (the “risk tolerance questionnaire”). Each response option to the risk tolerance questionnaire is
assigned a predetermined score based on the level of risk tolerance that VFA has associated with each
response option. The VDA Program assigns a score to each client based on their responses (the “Risk
Score”). If the client has at least $25,000 to invest, the VDA Program will ask whether the client desires a
“strategic” or “tactical” model portfolio. The VDA Program will recommend a model portfolio to the client
based on his or her Risk Score and desire for a “strategic” or “tactical” portfolio.
The model portfolios are managed by the IIS(s) based on the portfolio’s goal, rather than on each client’s
individual needs. Clients, nevertheless, may impose reasonable restrictions on the management of assets
through the VDA Program; provided, however, that VFA may refuse to accept or to continue to provide
investment advisory services with respect to such program assets, as the case may be, if it determines
such restrictions are unreasonable.
For additional details on the VDA Program, please review VFA's Form ADV Part 2A, Appendix 1 Voya
Digital AdviserTM Wrap Program Brochure, which is available upon request from your IAR or from VFA.
This brochure contains important information about the VDA Program, including but not limited to further
information about the model portfolios available through the VDA Program, the digital nature of the VDA
Program, and the conflicts of interest and risks associated therewith.
As wrap fee programs, the Select Adviser Series Program, the UMA Programs, and the VDA Program
offer you the ability to invest in multiple investment strategies managed by a number of investment
strategists. This means that your IAR is responsible for recommending the strategist(s) to provide the
model asset allocation, rather than recommending the individual investments in your portfolio. This differs
from non-wrap fee programs, where the IAR is responsible for recommending investments to you. VFA
and its IARs receive a portion of the total fee paid by you to invest through a wrap fee program.
THIRD PARTY MONEY MANAGER PROGRAMS
VFA also offers investment advisory management programs to clients through third party money manager
programs.
The IAR and the client discuss a client's particular circumstances and establish goals and objectives. The
IAR helps determine the client's individual objectives, time horizon, risk tolerance and liquidity needs. The
IAR then helps the client to develop an IPS that results in the recommendation of a model portfolio that is
suitable for the client.
The IAR then recommends an unaffiliated third party money manager on VFA's approved list of providers
which has a portfolio management style that is suitable for that client. Factors considered in
recommending a third party money manager include account size, risk tolerance, the opinion of each
client and the investment philosophy of the selected registered investment adviser. Depending on the
third party money manager program, the client's portfolio will either be managed based on the client's
specific investment objectives or according to a specific model portfolio. Clients should refer to the
recommended registered investment adviser's firm brochure - or other disclosure document for a full
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description of the services offered by the third party money manager. IARs are available to meet with
clients as needed to discuss any changes and review the performance of their account.
VFA periodically reassess, but does not continuously monitor, the performance of the selected third-party
money managers. If VFA or the IAR determines that a particular selected third-party money manager is
not managing the client's portfolio in a manner consistent with the client's IPS, or the client's investment
objectives and situation changes, the IAR may recommend a different third party money manager. Under
this scenario, the IAR assists the client in selecting a new registered investment adviser and/or program.
However, the decision to move to a new registered investment adviser and/or program is solely at the
discretion of the client.
FINANCIAL PLANNING AND CONSULTING SERVICES
VFA and its IARs provide individual and specialty financial planning services to clients on either a one-
time or an annual basis. Financial planning is a comprehensive evaluation and analysis of a client’s
current and future financial situation and needs using variables that may include current and future
income, expenses, investment growth, cash flows, asset values and withdrawal plans. Based on the
client’s financial situation, goals, investment objectives, needs and risk tolerance, IARs may make asset
class or asset allocation recommendations. Through the financial planning process, all questions,
information and analysis are considered as to how they may impact the financial situation of the client.
Clients receive either a written plan or summary report of the services provided, which provides the client
with detailed evaluation or advice designed to help them achieve their financial goals and objectives.
VFA cannot guarantee future financial results or the achievement of the client’s financial goals through
implementation of a financial plan or any advice or recommendations provided. VFA does not monitor the
day-to-day performance of the client’s specific investments.
In general, the financial planning may address the following services in either the one-time or the
annual/ongoing plan. Not all services listed are available in an annual/ongoing financial plan. Detailed
descriptions of each service are contained in the Financial Planning and Consulting Services Agreement.
Please read that agreement carefully before engaging in any of the services below:
Financial Planning Services Consulting Services Specialty Services (Financial
Planning or Consulting)
Cash flow, budgeting, and major
purchase buy/sell planning
General financial
information/education
Business Planning Services
Individual savings goals, asset
allocation, and insurance
planning
Cash flow, budgeting, and major
purchase buy/sell decisions
Estate distribution services
Retirement planning Insurance review Special Needs Planning
Education Planning Estate/Legacy review Divorce Planning
Estate Planning Retirement planning/Social
Security review
Investment Planning
Qualified Plan and IRA
distribution analysis
Education Funding Executive Planning with stock
option and deferred
compensation evaluations
Retirement Social Security
benefit analysis
Plan Reviews
The client is under no obligation to act on the advice of VFA, IARs or any other affiliated persons. The
client must decide whether to implement any advice or recommendations made by VFA, IARs or any
other affiliated person. If the client does follow such recommendation, the client acknowledges that
he/she is under no obligation to effect the transactions through VFA or its affiliates. Clients should
carefully review all sales charges, front-end or deferred, and ongoing fees and loads charged in all
products or service programs before investing.
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Financial Planning and Consulting Services Term
One-time services do not require VFA or IARs to monitor client’s assets or monitor financial markets on
an ongoing basis for such client, and do not include periodic plan reviews or updates. Delivery of the
written plan or summary report constitutes completion of the one-time service and shall occur within
ninety (90) days of the signing of the agreement for most one-time planning services. Certain specialty
planning services may take longer to complete.
Annual/ongoing services begin on the date of the signing of the agreement and continue until the renewal
date, as defined in the agreement. The annual service will automatically renew on the first day of the
month following the annual anniversary date for a period of one (1) year unless terminated by either party
pursuant to the terms described below. Delivery of the written plan or summary report does not constitute
completion of the agreement and shall occur within ninety (90) days of the initial planning year and within
ninety (90) days of the renewal date for each subsequent renewal year.
To provide services under agreement the IAR gathers information through personal interviews.
Information gathered may include the client's current financial status, tax status, future goals, return
objectives and attitudes towards risk. The IAR carefully reviews documents supplied by the client, which
may include a questionnaire completed by the Client, and prepares a written report. Should the client
choose to implement the recommendations contained in the plan, the Client should work closely with
his/her attorney, accountant, insurance agent, and/or stockbroker. Implementation of recommendations is
entirely at the client's discretion.
IARs do not make recommendations concerning the purchase or sale of specific securities when
preparing financial plans. However, in response to requests by clients for advice or recommendations to
implement a financial plan, the IAR's recommendations are limited to only those products offered through
VFA, where the IAR is registered as an investment adviser representative and as a registered
representative of the broker dealer. Similarly, any insurance recommendations will be limited to the
insurance companies the IAR is appointed with as an insurance agent or broker. This creates a conflict
of interest as the Firm may recommend the use of proprietary insurance or investment products, and will
recommend a product for which VFA or its IAR will earn compensation. You are be able to purchase the
same or other similar products and services at another broker-dealer or investment adviser, but for a
lower cost.
Termination of the Financial Planning or Consulting Services Agreement
Clients may terminate the agreement without penalty within five business days of entering into the
agreement. Any party may terminate the agreement at any time after the five business day period without
penalty upon written notice to the other party. Clients agree that such termination will not affect the
liabilities or obligations which arise from transactions initiated prior to termination. Upon termination of the
agreement, any fees collected by VFA for one-time planning services will be reimbursed in full if a plan
has not been delivered. Any annual planning fees collected but not earned will be reimbursed to Clients at
a pro-rata share based on the amount of days remaining in the payment installment period.
Reimbursement will be provided through check regardless of payment method. The agreement will not
terminate in the event that the IAR establishing the agreement is no longer associated with VFA or is
otherwise removed from the agreement. VFA reserves the right to replace the IAR providing services
under the agreement, with or without cause.
The VFA Financial Planning or Consulting Services Agreement that the client is required to review
and execute prior to the preparation and delivery of any type of services contains additional
disclosures. Please review that agreement carefully prior to signing the agreement.
BE READY PROGRAM
Be Ready is a program for employees of selected worksite plan sponsors who are clients of a VFA
affiliate. Be Ready gives employees access to VFA financial professionals who can help them prepare
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for retirement. Through Be Ready, VFA may make available financial planning services to employees of
selected worksite plan sponsors. The costs for products are pre-negotiated for all employees
participating in the Be Ready program. Additionally, VFA may make available free-of-charge advisory
services on a one-time, non-discretionary basis at the client’s request.
Financial Planning/Analysis Services: Consists of consultation with the client to collect information
about client’s goals, risk tolerance and current financial situation, and financial analysis that results in a
written evaluation addressing client’s retirement income goals and other financial goals as well as risk
analysis. The consultation sessions typically will not exceed three sessions of one hour each. The written
evaluation will address the financial plan and any of the following goals, as described above: Asset
Allocation; Business Retirement Planning; Education Funding; Estate Planning; Financial Analysis and
Statements; General Analysis and Planning; and Insurance Profile/Analysis. If additional time is required
to develop the plan, additional consultations are available at an hourly rate.
The financial planning services offered through Be Ready follow the guidelines found in this Brochure.
For additional information about financial planning services offered by VFA, please see the section titled
“Financial Planning” in this Item 4.
Be Ready Advisory Services: VFA may also offer a variety of free-of-charge advisory services to Be
Ready clients on a one-time, non-discretionary basis. These advisory services provide basic asset
allocation and funding guidance appropriate for clients’ goals and risk tolerance, and in certain instances,
provide corresponding investment recommendations. The Be Ready Advisory Services are not a
substitute for a comprehensive financial plan.
Neither the Financial Planning Services nor the Be Ready Advisory Services offered to Be Ready clients
shall require VFA or IARs to monitor clients’ assets on an ongoing basis, nor shall it require that VFA or
IARs update recommendations to reflect changes in clients’ circumstances. These services will also not
require VFA or IARs to monitor financial markets and conditions for clients and will not require that VFA or
IARs perform ongoing analysis of clients’ assets for factors that may impact performance.
Clients may request an annual review session. Such annual review sessions shall review changes to the
client’s financial situation. The annual review may or may not include an accompanying written report.
The annual review is not a substitute for a comprehensive financial plan. Clients are solely responsible for
contacting their IAR to schedule an annual review session. VFA reserves the right to subsequently limit,
modify or discontinue offering annual review sessions or to charge a fee for annual reviews in the future.
Clients are solely responsible for implementing any recommendations made as part of the Financial
Planning and Be Ready Advisory services. IARs will not exercise discretion over a client’s assets in
connection with these services. In addition to the Financial Planning Services and Be Ready Advisory
services described in this section, Be Ready clients may also be offered certain advisory products as
described elsewhere in this Brochure.
FINANCIAL PLANNING SEMINARS
IARs may conduct seminars which may include, among other topics, presentations on financial planning,
various securities and insurance strategies, business planning, long-term care and/or retirement planning.
Attendees are under no obligation to do so, but are encouraged to have individual consultations with the
IAR and to have a financial plan prepared. In addition, certain IARs receive approval to charge the
corporate sponsors of their seminars a fixed fee to hold seminars for the corporation's employees. This
fee is not tied to a per employee attendance count.
ERISA PLAN INVESTMENT CONSULTING (“EPIC Services”)
VFA offers consulting and advisory services for employer-sponsored retirement plans that are designed
to assist plan sponsors of employee benefit plans (“Plan Sponsor(s)”). VFA may also assist Plan
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Sponsors with enrollment and/or providing investment education to plan participants and beneficiaries.
VFA provides these retirement plan services through certain of its IARs who have gone through specific
training and received approval to offer these services, and may charge a fee for EPIC Services, as
described in this Form ADV Part 2A and the ERISA Plan Investment Consulting Agreement
(“Agreement”).
EPIC Services are either ERISA fiduciary services or ERISA non-fiduciary services. ERISA non-fiduciary
services may be performed only so that they would not be considered fiduciary services under the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”). When delivering ERISA
fiduciary services, VFA will perform those services to the plan as a fiduciary, generally under ERISA
Section 3(21)(A)(ii). When providing any ERISA fiduciary services under ERISA Section 3(21)(A)(ii), VFA
will solely be making recommendations to the Plan Sponsor and the Plan Sponsor retains full
discretionary authority and control over assets of the plan.
Under limited circumstances and subject to the IAR’s approval by VFA’s Home Office, VFA will perform
ERISA fiduciary services as an “investment manager” pursuant to ERISA Section 3(38). In such a
circumstance, VFA, through its IAR, will exert discretionary authority and power to manage, acquire, or
dispose of any asset of the Plan. Importantly, this means that VFA will not seek Plan Sponsor’s prior
consent or authority prior to executing securities transactions and taking other actions with respect to
Plan assets.
Plan Sponsor may engage VFA to perform EPIC Services by completing an ERISA Plan Investment
Consulting Advisory Services Agreement providing information about the plan, including but not limited to
options available through the plan, plan objectives, investment objectives, investment risk tolerance,
demographics about plan participants, and third-party service providers. VFA will provide Plan Sponsor a
copy of this Form ADV Part 2A and the Agreement for review. The Agreement describes the terms of the
arrangement between VFA and the Plan Sponsor, including a description of the retirement plan services
and the fees to be charged by VFA. By signing the Agreement, the Plan Sponsor represents that Plan
Sponsor has received sufficient information and determined that the retirement plan services selected
are: (i) necessary for the operation of the plan and (ii) reasonable and appropriate based upon the
compensation to be paid for the Services. Plan Sponsor must sign and submit the Agreement to VFA
before VFA performs any EPIC Services.
Description of the Retirement Plan Services
VFA offers the following 3(21), and in certain limited circumstances, 3(38) Fiduciary, and Non-Fiduciary
Retirement Plan Services:
Plan Sponsor – ERISA 3(21) Fiduciary Services:
1) Recommendations to establish or revise the Plan’s Investment Policy Statement (“IPS”)
2) Recommendations to select and monitor the Designated Investment Alternatives (“DIAs”)
3) Recommendations to allocate and rebalance model asset allocation portfolios
4) Recommendations to select and monitor investment managers
Plan Sponsor – ERISA Non-Fiduciary Services:
1) Assistance with Plan governance and committee education
a) Determining Plan objectives and options available through the plan
b) Reviewing retirement plan committee structure and requirements
c) Reviewing participant education and communication strategy, including ERISA 404(c)
requirements
d) Coordinating and reconciling participant disclosures under ERISA 404(a)
e) Developing requirements for responding to participant requests for additional information
f) Developing and maintaining a fiduciary audit file
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g) Attending periodic meetings with plan committee (upon request by plan sponsor)
2) Assistance with Plan fiduciaries’ vendor management (service provider selection/review)
a) Reviewing fees and services and identifying procedures to track the receipt and evaluation of
ERISA 408(b)2 disclosures
b) Providing periodic benchmarking of fees and services to assist review for reasonableness
c) Reviewing ERISA spending accounts or plan expense recapture accounts (“PERAs”)
d) Generating and evaluating service provider requests for proposals (“RFPs”) and or requests from
information (“RFIs”)
e) Support with contract negotiations
f) Service provider transition and/or plan conversion
3) Investment Education for Plan fiduciaries
a) Investment Policy Statements
b) Assessment of overall investment structure of Plan
c) Review of the Plan’s investment options
d) Review of Qualified Designated Investment Alternatives (“QDIA”)
e) Search and review of investment managers
Plan Participant - ERISA Non-Fiduciary Services
1) Employee investment education and communication
a) Providing group enrollment and investment education meetings
b) Providing fee specific education and communicate the Plan’s requirements for requesting
additional information about plan fees and expenses
c) Supporting individual participant questions
d) Providing periodic updates, upon request of newsletter
e) Assisting participants with retirement preparation
Potential Additional Retirement Services Provided Outside of the Agreement
In providing EPIC Services, VFA and its IARs may establish a client relationship with one or more plan
participants or beneficiaries. Such client relationships develop in various ways, including, but not limited
to:
1) as a result of a decision by the participant or beneficiary to purchase
services from VFA not involving the use of plan assets;
2) as part of an individual or family financial plan for which any specific
recommendations concerning the allocation of assets or investment
recommendations
relate exclusively to assets held outside of the plan; or
3) through an Individual Retirement Account rollover (“IRA Rollover”).
If VFA is providing EPIC Services to a plan, IARs may, when requested by a plan participant or
beneficiary, arrange to provide services to that participant or beneficiary through a separate agreement
that excludes any investment advice on plan assets (but may consider the participant’s or beneficiary’s
interest in the plan in providing that service). If a plan participant or beneficiary desires to affect an IRA
Rollover, IAR will obtain a written acknowledgement from the plan participant. Any decision to affect the
rollover or about what to do with the rollover assets remains that of the participant or beneficiary alone.
AMOUNT OF MANAGED ASSETS
As of December 31, 2021, VFA had $2,365,057,793.37 of assets under management on a non-
discretionary basis plus $45,910,587.03 assets under management on a discretionary basis.
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BNY INVESTMENT CREDIT LINE PROGRAM
BNY Mellon, an affiliate of Pershing, offers the Investment Credit Line program to its customers. This
product allows BNY Mellon customers to borrow funds utilizing assets held in the customers’ account
custodied with Pershing as collateral for the loan. Although this program is not offered through VFA, IARs
can refer Clients to BNY Mellon if Clients desire to establish a line of credit using securities held in their
investment advisory account. Clients are not allowed to use funds received through this program to
purchase securities or insurance products offered through VFA. No compensation is received by VFA or
IARs for the referral or if the client establishes a line of credit. BNY Mellon offers the Investment Credit
Line to its customers in its sole discretion, and VFA in no way oversees the BNY Mellon Investment Credit
Line, nor determines who is eligible to participate.
BNY Mellon is a parent company of and custodian for Pershing and acts as transfer agent for Voya
Investment Management, an affiliate of VFA. This creates a conflict of interest, as BNY Mellon maintains
a pre-existing business relationship with VFA’s clearing firm and an affiliate of VFA. As discussed in Item
4, above, VFA considers the entirety of a product sponsor’s relationship with VFA and VFA’s affiliates in
determining whether to offer, or continue to offer a product sponsor’s product(s), which includes, but is
not limited to, Pershing and BNY Mellon’s relationship with VFA and VFA’s affiliates.
CASH ADVANTAGE PROGRAM
AssetMark offers the Cash Advantage program to VFA clients with certain AssetMark Trust Company
custodial accounts. The Cash Advantage program is a securities-backed line of credit linked to your
account held at AssetMark Trust. Unlike a margin account, these borrowed funds cannot be utilized to
purchase additional securities. If you decide to open a Cash Advantage account, please carefully
consider the following:
1. You are borrowing money that you will be required to pay back.
2. Cash Advantage is only available for accounts that are not retirement accounts. For purposes of
this Brochure, a “Retirement Account” is an account held by an ERISA plan or an account
otherwise subject to Section 4975 of the Internal Revenue Code (e.g. IRA).
3. You are using the securities that you own in the account as collateral.
4. You are charged an interest rate that is subject to change and the rate can go up or down.
5. Depending on the relation between the account value, credit limit and amount borrowed,
collateral devaluations may limit the available credit or possibly require a deposit of additional
assets or immediate payment.
6. Due to the fact that securities are pledged to support the outstanding loan amount, AssetMark
Trust Company can limit client withdrawals from the account until loan requirements are met or
the loan is paid off.
7. AssetMark Trust Company may request additional information such as, but not limited to, a credit
check in order to complete their review of your account(s).
For the Cash Advantage program, there is an agreement between AssetMark Trust Company and The
Bancorp, Inc (“Bancorp”). No agreements are in place between VFA and Bancorp. Bancorp does not
compensate VFA for referrals or otherwise. VFA allows AssetMark to offer this service as a courtesy to
our clients, and in no way oversees the program.