WEALTH MANAGEMENT BLOG

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As a Registered Investment Advisor (RIA) HoyleCohen is subject to the oversight of the Securities and Exchange Commission (SEC) that sets forth certain rules that all RIAs must comply with. These rules are, at their core, designed to protect clients and ensure their funds are handled with the utmost care. One such rule is the requirement that the assets that HoyleCohen manages for you be held at what is known as a qualified custodian. According to the SEC, qualified custodians include banks and savings associations, registered broker dealers, futures commissions agents and certain foreign financial institutions.

With such a broad definition of what a qualified custodian can be, how do RIAs like HoyleCohen ensure that client assets and securities are in capable hands? There are several things we do on an ongoing basis to vet the custodians we have chosen on your behalf to ensure our continued confidence in their ability to safeguard your assets. First, we perform annual due diligence on the custodians we work with. This includes a review of their management structure, policies and procedures, data security, systems controls and risk mitigation strategies. We also conduct annual reviews of best execution at each custodian which involves comparing trade execution pricing as well as other services offered. Additionally, we incorporate feedback from our internal team regarding the speed and efficiency with which the service providers at each custodian handle and resolve client issues and concerns.

We have enjoyed positive experiences with all the custodians we have worked with over the years. However, as you may have heard, we recently made the decision to consolidate all our client accounts at a single custodian: Charles Schwab & Co. We have a longstanding relationship with Schwab, and they have consistently scored at the top of the list in both our due diligence and best execution reviews. Additionally, Schwab offers a myriad of cost and time savings advantages that contributed to this consolidation decision.

We are very confident in their controls and their leadership and impressed by the service offerings that they have available to clients and to our team. We look forward to an expanded relationship with Charles Schwab as we seek to deliver the best possible client experience.

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