Spectrum Advisors is a investment adviser based in Plano, TX, that holds a 82.8/100 Fidelon TransparencyScore (34th percentile among SEC-registered advisers), with 5 registered advisors. Score based on public SEC and FINRA filings.
Spectrum Advisors
Spectrum Advisors, INC. · CRD #114805
A registered investment adviser held to a fiduciary standard.
Fidelon Fact Sheet
Spectrum Advisors, INC. is an SEC-registered investment adviser in Plano, TX. It used to be called Dallas Financial Advisory, INC. and Spectrum Wealth Management, LLC. Its 5 registered advisors typically serve individuals and families and retirees. It manages $160 million across 890 client accounts. It charges a yearly percentage of your account that gets smaller as the account grows, and it does not report earning commissions. Its services include financial planning, portfolio management, educational seminars and investment newsletters. Its filing reports disclosures.
Peer Context
7,166th of 10,815
SEC-registered advisers
Bottom 34%
479th of 725
SEC-registered advisers in TX
Bottom 34%
19th of 32
SEC-registered advisers in Plano, TX
Bottom 41%
How This Firm Works
Registration & Standard of Care
Investment Adviser — this firm is a registered investment adviser, held to a fiduciary standard — legally required to act in clients' best interests.
How This Firm Gets Paid
- Charges a percentage of assets under management
- Charges fixed fees for specific services
- Does not earn commissions on product sales
What you’d pay
Your balance falls in the $25,000,000 and above band, charged at 0.50% on the full amount.
This fee is negotiable
“The above fees are negotiable based on the size of the account, the length of time with us, and other factors we deem applicable.”
From their Form ADV Part 2A. Most investors never ask.
Not included above
- • Financial Planning Services fees are fixed between $500 and $10,000 per plan
- • Financial Planning Consulting & Review Services fees are at an hourly rate of $250 per hour
- • Third Party Estate Planning Access fee is a one-time fee of $1,000
- • Third-Party Money Manager Selection Services fees vary based on the TPMM chosen and could be up to 3.00% annually
- • Tax Preparation services fees vary based on complexity and are negotiated directly with the client
- • Qualified Retirement Plan Consulting Fees follow the same schedule as Portfolio Management with a maximum of 1.20%.
Estimated from the firm’s Form ADV Part 2A brochure — not a quote. Actual fees are set in your agreement and may differ. Costs charged by others (custodians, fund managers) are not included.
What This Firm Charges
| Account Size | Annual Fee |
|---|---|
| $1,000,001 - $3,000,000 | 1.05% |
| $3,000,001 - $5,000,000 | 0.90% |
| $5,000,001 - $10,000,000 | 0.75% |
| $10,000,001 - $25,000,000 | 0.60% |
| $25,000,000 and above | 0.50% |
Billed monthly in arrears
Extracted from Form ADV Part 2A brochure
Specializations
Extracted from Form ADV Part 2A brochure
Who They Typically Serve
Extracted from Form ADV Part 2A brochure
Key Findings
Strengths
- Fee-only compensation — no commission income reported
- Registered as investment adviser with fiduciary obligation
- No broker-dealer registration — advisory services only
- Transparent fee structure — charges advisory fees, no commissions
Things You Should Know
- Has regulatory disclosures on file — count not available yet
- Its brochure says its people can earn commissions on products, but it does not say you can buy the same products elsewhere, commissions can shape what they recommend, or whether commissions lower your advisory fee. Ask whether you could buy any recommended product through another broker or insurer.Item 5.E
- Its brochure says it receives research or services from brokers, but it does not say those perks can shape which broker it picks for you or whether every client benefits or only some. Ask how the firm chooses the broker for your trades and whether perks play any part.Item 12.A.1
Conflict Audit
Zero material conflicts identified in regulatory filings.
Source: Form ADV Part 1, Items 6-8; Part 2A, Items 10-14
What this firm says about how it gets paid
“The more assets you have in the advisory account, including cash, the more you will pay us. We therefore have an incentive to increase the assets in your account in order to increase our fees.”
“Your custodian provides services to us, including research, execution, brokerage, custody and access to mutual funds and other investments.”
Source: the firm’s own Form CRS — quoted directly
Regulatory Track Record
On file
Disclosures
Count not available
—
Total Fines
Not available
Regulatory Events
TransparencyScore Dimensions
Disclosure Record
Customer complaints, arbitrations, and fines. Frequency and recency matter.
98/100
Strong
Avg for investment adviser firms: 82.6 | Top 10%: 99.5
Filing Quality
How clearly the firm describes services, fees, and investment approach in regulatory filings.
94/100
Strong
Avg for investment adviser firms: 84.1 | Top 10%: 100
Conflict Disclosure
How openly the firm explains who pays it and what it's paid to sell. The conflict isn't the problem — hiding it is.
47/100
Weak
Avg for investment adviser firms: 54 | Top 10%: 67
Enforcement History
Self-reported legal and disciplinary history from Form ADV Item 11.
100/100
Strong
Avg for investment adviser firms: 99.7 | Top 10%: 100
Their two-page relationship summary
The SEC requires every SEC-registered investment adviser to hand you this summary, called a Form CRS, and says what it must cover. We checked this firm's against that list. What is a Form CRS?
- Does it include everything the SEC requires?
- Required sections
- 80/100
- Does it explain how the firm's conflicts affect you?
- Conflicts of interest
- 91/100
- Can you tell what you would pay?
- What you pay
- 69/100
- Is it written in plain English?
- Plain language
- 94/100
This firm's Form CRS averages 84 out of 100. It adds 5.88 points once the firm's filings and record score 90 on their own; they score 82.78 today.
What their brochure tells you
The firm must give you this brochure, Form ADV Part 2A, before you sign. We read it against the SEC's own instructions, item by item. Quotes are the firm's own words; page numbers refer to the filed brochure. What is in a brochure?
Can you tell what you'd pay and when?Brochure Fee Clarity100/100
The SEC asks every brochure to spell out the fee schedule, whether fees can be negotiated, how and when you are billed, the other costs you pay, and refunds.
The brochure answers every one of these.
- Can you tell what you'd pay?CoveredItem 5.A
Without a fee schedule you cannot compare this firm with any other.
For investment analysis, planning, portfolio design, implementation, monitoring and reporting quarterly, our fee is on the below tiered schedule based on the amount of assets managed.p. 10
- Does it say whether the fee can be negotiated?CoveredItem 5.A
If fees are negotiable, other clients may be paying less than you for the same service.
The above fees are negotiable based on the size of the account, the length of time with us, and other factors we deem applicable.p. 10
- Does it say whether the fee comes out of your account or gets billed?CoveredItem 5.B
A fee taken straight from your account is easy to stop noticing.
Portfolio Management fees will be deducted from your accounts at the custodian monthly in arrears from your accounts following the end of the month.p. 11
- Does it say how often you're charged?CoveredItem 5.B
Monthly, quarterly, in advance or in arrears changes what you owe when you leave.
Our fees are based on the percentages listed in the Fee Schedule and are calculated monthly in arrears using the average daily balance and the number of days in the month.p. 10
- Does it list the other costs you pay, like fund and custodian fees?CoveredItem 5.C
The advisory fee is rarely the whole bill; fund, trading and custody costs come on top.
Investment Management fees do not include the cost of custodial services for individual retirement accounts or for qualified retirement plans.p. 11
- Does it say how you get money back if you leave mid-period?CoveredItem 5.D
If you pay in advance and leave early, the refund rule decides what you get back.
A refund of our unearned fees will be made on a prorated basis from the time of termination.p. 11
Does it explain each conflict of interest and what it could cost you?Brochure Conflict SpecificityNot applicable
Not applicable: the brochure names no material conflict of interest
Do they earn commissions on products, and do they say so?Brochure Sales Compensation40/100
When a firm or its people sell products for a commission, the SEC asks the brochure to say so, name the pull, and tell you whether you could buy elsewhere.
Each point is marked Covered or Not found. When a point is not found, we say what to ask.
- Does it say that earning commissions is a conflict of interest?CoveredItem 5.E.1
A firm paid to sell a product has a reason to recommend it that has nothing to do with you.
This creates a conflict of interest because the investment advisory agent is also a licensed insurance agent and can recommend insurance products to clients.p. 15
- Does it say commissions can shape what they recommend?Not found in the brochureItem 5.E.1
Naming the pull is the first step to controlling it; silence leaves it working on you.
What to askAsk how the firm keeps commissions from steering the advice you get.
- Does it say you can buy the same products elsewhere?Not found in the brochureItem 5.E.2
You may be able to buy the same product for less somewhere else.
What to askAsk whether you could buy any recommended product through another broker or insurer.
- Does it say whether commissions lower your advisory fee?Not found in the brochureItem 5.E.4
If the firm earns a commission and the full advisory fee, you pay twice for one recommendation.
What to askAsk whether any commission the firm earns is credited against your advisory fee.
Do they get free research or services from brokers, and does it affect you?Brochure Soft Dollars53/100
When brokers give the firm research or services in return for your trades, the SEC asks the brochure to say what the firm gets and what it may cost you.
Each point is marked Covered or Not found. When a point is not found, we say what to ask.
- Does it list what the firm gets from brokers for free?CoveredItem 12.A.1.e
Research, software and data paid for by your trades are a cost you never see.
We receive, at no cost, software and support from custodians that allow the Firm to better monitor and service client accounts, including assistance with invoicing, trade execution, and recordkeeping.p. 22
- Does it say the firm benefits by not paying for those things?CoveredItem 12.A.1.a
A perk the firm would otherwise buy is money in the firm's pocket, paid with your trades.
We receive, at no cost, software and support from custodians that allow the Firm to better monitor and service client accounts, including assistance with invoicing, trade execution, and recordkeeping.p. 22
- Does it say those perks can shape which broker it picks for you?Not found in the brochureItem 12.A.1.b
Your trades should go where you get the best deal, not where the firm gets the best perks.
What to askAsk how the firm chooses the broker for your trades and whether perks play any part.
- Does it say whether those perks stay within what the law allows?CoveredItem 12.A.1.e note
The law allows research paid for with client trades only within limits; outside them, it is your money.
We receive, at no cost, software and support from custodians that allow the Firm to better monitor and service client accounts, including assistance with invoicing, trade execution, and recordkeeping.p. 22
- Does it say whether you pay more in trading costs because of those perks?Does not applyItem 12.A.1.c
Paying up for trades to earn the firm a perk comes straight out of your returns.
- Does it say whether every client benefits or only some?Not found in the brochureItem 12.A.1.d
Your trades may be paying for research that helps other clients' accounts, not yours.
What to askAsk whether the research your trades help pay for is used for your account.
A point not found is not a finding against the firm; many points apply only when the firm has that arrangement, and state-registered firms file the same brochure form.
Next Steps
Advisor Roster
5 advisors
| Advisor | CRD | Score | Grade |
|---|---|---|---|
| Nicholas Paul Lehman | 6392465 | — | — |
| Karina Robin Kingman | 6461115 | — | — |
| Elise Mallory Henderson | 7984217 | — | — |
| David R Faulkner | 4490886 | — | — |
| Jon Michael Reppert | 1474315 | — | — |
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Frequently Asked Questions
What does the TransparencyScore measure?
The TransparencyScore measures how clearly and completely an advisor or firm discloses important information in their regulatory filings — things like fees, conflicts of interest, disciplinary history, and business practices. A higher score means better disclosure quality, not better investment performance.
Where does this data come from?
All data comes from public regulatory filings: SEC Form ADV (Parts 1, 2, and 3), FINRA BrokerCheck, and the SEC's Investment Adviser Public Disclosure (IAPD) database. These are official filings that firms and advisors are legally required to submit.
Does a low score mean they're a bad advisor?
Not necessarily. A low score means the firm's public filings are less transparent — they may use vague language about fees, skip details about conflicts, or have a more complex regulatory history. Some excellent advisors work at firms with poor disclosure practices. The score measures the filing, not the person.
How often is this data updated?
Fidelon refreshes data from SEC and FINRA sources on a regular schedule. Form ADV filings are updated annually by firms (with amendments throughout the year), and BrokerCheck data is updated as events are reported. Scores are recalculated after each data refresh.
Can an advisor or firm improve their score?
Yes. Scores are based on what's in public filings. A firm that rewrites its ADV brochure in clearer language, discloses conflicts more specifically, or resolves outstanding regulatory issues will see its score improve at the next refresh. The incentive structure is intentional.
Data Sources
Scores are generated using Fidelon's published scoring methodology and reflect the quality of public disclosures, not the quality of investment advice. A firm that improves its disclosures will see its score improve. Fidelon does not provide investment advice.
Verify on SEC IAPD
Last scored: · Score version: 3.15 · CRD #114805