Independent financial advisors typically use independent custodians – generally brokerage firms or banks – to hold and safeguard their clients’ stocks, mutual funds, and other assets.
Why should you ask this question?
You want to be confident that your advisor has chosen a custodian that meets or exceeds the security measures required by industry regulators to help protect your assets.
- Look for a custodian with important services, such as trade execution and preparation of monthly brokerage statements, which allow your advisor to concentrate on managing your portfolio.
- Ask about the custodian’s policies to help protect personal and financial information from unauthorized activity.