Our Custodians

We use FolioInstitutional, Charles Schwab, and TD-Ameritrade platforms

What is a ‘Custodian’
A custodian is a financial institution that holds customers’ securities for safekeeping to minimize the risk of their theft or loss. A custodian holds securities and other assets in electronic or physical form. Since they are responsible for the safety of assets and securities that may be worth hundreds of millions or even billions of dollars, custodians generally tend to be large and reputable firms.

In addition to holding securities for safekeeping, most custodians also offer other services, such as account administration, transaction settlements, collection of dividends and interest payments, tax support, and foreign exchange. The fees charged by custodians vary, depending on the services that the client desires. Many firms charge quarterly custody fees that are based on the aggregate value of the holdings.

A custodian is a person or entity selected to hold and protect customer funds or investments through either direct or indirect means. Additionally, a custodian may have the right to assert possession over the assets if required often in conjunction with a power of attorney. This allows the custodian to perform actions in the client’s name, such as making payments or changing investments.

Qualified Custodian
In cases where investment advisors are responsible for customer funds, the advisor must follow custody rules set forth by the Securities and Exchange Commission (SEC). The person or entity must be considered a qualified custodian, often limiting the options to banks, registered brokers, registered dealers, and certain other individuals or entities.

Reporting Requirements
Notices must be supplied to customers when certain activities are conducted on their behalf or using their assets. Further, account statements must be supplied to the customers to keep them abreast of the current holdings associated with their assets.

Source: Custodian http://www.investopedia.com/terms/c/custodian.asp#ixzz4vIUSoUCR

Folio Institutional

We primarily use Folio Institutional as our custodian. Folio Institutional* is a division of FOLIOfn Investments, Inc. (“Folio”), the custodian our Registered Investment Advisor has chosen to hold and support management of your investment assets. Founded in 2000 by Steven M.H. Wallman, a former commissioner of the U.S. Securities and Exchange Commission (SEC), Folio has been a self-clearing broker-dealer and a direct member of the Depository Trust & Clearing Corporation (DTCC) since 2001. Today, Folio provides custody and brokerage services for billions of dollars of investor assets. Folio provides direct, independent online access to view your investments, receive tax information, monitor performance, vote proxies, or take other actions not assumed by your advisor. Folio is a member in good standing of the Financial Industry Regulatory Authority (FINRA), the independent, nongovernmental regulator for all securities firms doing business with the public in the United States, and is subject to oversight by the SEC, FINRA, and various state securities regulatory agencies. As a clearing broker-dealer, Folio is subject to periodic financial audits performed by the SEC and/or FINRA. With access to innovative, patented online brokerage and investing solutions, advisors can efficiently maintain diversified portfolios of securities, retain hands-on control over investments, and utilize tools to manage tax liabilities, produce analytical reports, conduct compliance-type reviews, and take many other actions for their clients’ benefit. Folio is an ideal match for advisors and their clients seeking an established, well-respected custodian for client assets, and a cost-effective portfolio management, investment, and high-end client services platform that provides advisors with powerful tools to manage diversified strategies for clients

*Information was provided by Folio Institutional.

TD Ameritrade

TD Ameritrade provides comprehensive services, including:
The execution, clearance and settlement of securities transactions
Preparing and sending monthly statements of your account and transaction confirmations
The custody of funds and securities
Account protection in the event of unauthorized activity
TD Ameritrade is obligated to seek the best price available for your order, taking into consideration current market conditions, such as the NBBO (National Best Bid and Offer), volume and liquidity. While we seek to get better prices for you, price improvement is not guaranteed and will not occur in all situations. TD Ameritrade acts as agent. Orders are filled by independent third parties.
Market volatility, volume and system availability may delay account access and trade executions. Price can change quickly in fast market conditions, resulting in an execution price different from the quote displayed at order entry. Execution price, speed and liquidity and account access are affected by many factors, including market volatility, size and type of order and available market centers.

Our clients will experience one of the highest levels of security in the industry with the following TD Ameritrade Asset Protection Guarantee:
If you lose cash or securities from your account due to unauthorized activity, TDA will reimburse you for the cash or shares of securities you lost. They’re promising you this protection, which adds to the provisions that already govern your account, if unauthorized activity ever occurs and we determine it was through no fault of your own. Of course, unauthorized activity does not include actions or transactions undertaken by or at the request of you, your investment advisors or family members, or anyone else whom you have allowed access to your account or to your account information for any purpose, such as trading securities, writing checks or making withdrawals or transfers.

We promise this protection if you work with us in four ways:

  • Keep your personal identifying information and account information secure and confidential, because sharing your UserID, password, PIN, account number or other standard means of authentication with other people means you authorize them to take action in your account.
  • Keep your contact information up-to-date with us, so that we can contact you in case of suspected fraud.
  • Review your account frequently and your statements promptly and report any suspicious or unauthorized activity to us immediately in accordance with your Client Agreement.
  • Take the actions we request if your account is ever compromised and cooperate with our investigation.

If you help us protect you in these basic ways, TDA promises no fine print and no footnotes…just our commitment to protect the assets you entrust to us.

Certificates of Deposit (CDs) purchased through TD Ameritrade are issued by banks insured by the Federal Deposit Insurance Corporation (FDIC). In addition, cash in your account can be held in a TD Ameritrade FDIC Insured Deposit Account (IDA). Balances in an IDA are held at one or more banks (“Program Banks”) where they are insured by the FDIC against bank failure for up to $250,000 per depositor, per bank. Two of the Program Banks are TD Bank, N.A. and TD Bank USA, N.A, both affiliates of TD Ameritrade. Each bank will have separate FDIC coverage of up to $250,000 per depositor for up to $500,000 total per IDA depositor.

TD Ameritrade, Inc. is a member of the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure is available on request at SIPC.org
Additionally, TD Ameritrade provides each client $149.5 million worth of protection for securities and $2 million of protection for cash through supplemental coverage provided by London insurers. In the event of a brokerage insolvency, a client may receive amounts due from the trustee in bankruptcy and then SIPC. Supplemental coverage is paid out after the trustee and SIPC payouts and under such coverage each client is limited to a combined return of $152 million from a trustee, SIPC and London insurers. The TD Ameritrade supplemental coverage has an aggregate limit of $500 million over all customers. This policy provides coverage following brokerage insolvency and does not protect against loss in market value of the securities.

TDAmeritrade allows us to manage client portfolios more effectively and efficiently with our flexible trading solutions.
Our trading capabilities provide you with access to technology, products and seasoned industry veterans to help you manage your clients’ portfolios more efficiently and effectively.
Our extensive offering provides you with access to critical trading resources, including:
All major market centers
Guidance on the application of options strategies
Expertise from fixed income specialists
Mutual funds from leading managers
ETFs/ETNs on the exchange
You’ll also enjoy greater flexibility with:
Pre-Market and extended hours trading
Simple execution of single trades or seamless execution of block trades
Trade online or work with our dedicated associates
Trade Away and prime brokerage capabilities