Having a separate entity custody, segregate, and safekeep your assets in your name is critically important. Why? Because an independent, unrelated custodian provides an extra layer of protection for safeguarding your assets. In addition to reports provided by the asset manager or advisor, the custodian generates and distributes its own statements directly to you ensuring that you get accurate, independent, and verifiable information about your account. The custodian, not the asset manager or advisor, is responsible for verifying and reporting your disbursement authorizations from your investment account. Remember, Bernie Madoff’s clients did NOT have the necessary checks and balances afforded by an independent custodian, therefore they were susceptible to the fraud Mr. Madoff committed. At Telarray, we use Schwab Institutional Services as our custodian and safekeeping agent.
Schwab Institutional Services is a top tier provider of custodial, operational and trading support custodying over $1.7 trillion in assets. We think Schwab is among the best, and they have a proven, long-term track record of serving their clients with competency and professionalism.
We encourage you to beware of any wealth manager – from large Wall Street firms to boutique shops – who, in addition to managing your assets, also custody and safekeep them. At Telarray, we believe separate and discrete manager/custodial functions inject prudent checks and balances and dramatically improves Asset Safety.