Custody Review

One of the most overlooked aspects of a client’s many relationships is their custody arrangement. Equitas Capital Advisors has developed an extensive screening and review process which allows us to evaluate a custodian on:

  • Experience and Commitment
  • Quality of Services Provided
  • Overall Fee Structure
  • Technological Capabilities
  • Securities Lending Capabilities

We believe that a properly structured custody relationship can have a significant impact on the overall success of a client’s investment program. Equitas Capital Advisors has forged an extensive network of industry contacts both locally and regionally.

In addition, Equitas Capital Advisors offers insured custodial services through Pershing Advisor Solutions, LLC, a division of the Bank of New York Mellon. Accounts receive the maximum insurance protection available through the Securities Investors Protection Corporation (SIPC®).

The Securities Investor Protection Corporation either acts as trustee or works with an independent court-appointed trustee in a missing asset case to recover funds. The statute that created SIPC provides that customers of a failed brokerage firm receive all non-negotiable securities that are already registered in their names or in the process of being registered. All other so-called “street name” securities are distributed on a pro rata basis. At the same time, funds from the SIPC reserve are available to satisfy the remaining claims of each customer up to a maximum of $500,000. This figure includes a maximum of $100,000 on claims for cash. Recovered funds are used to pay investors whose claims exceed SIPC’s protection limit of $500,000. SIPC often draws down its reserve to aid investors. The cash and securities–such as stocks and bonds–held by a customer at a financially troubled brokerage firm are protected by SIPC. Among the investments that are ineligible for SIPC protection are commodity futures contracts and currency, as well as investment contracts (such as limited partnerships) and fixed annuity contracts that are not registered with the U.S. Securities and Exchange Commission under the Securities Act of 1933. It is important to recognize that SIPC does not work the same way as the Federal Deposit Insurance Corporation in terms of blanket protection of losses.