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.