When setting up your practice, you’ve got a lot of things to figure out: where your office will be, what your buying and selling strategy is, how you’ll market yourself and grow your business, staffing decisions and so on.
But one of the most important things you need to decide is where your clients’ assets will actually be custodied. The custodian for these accounts is not only a business you need to trust, but that your clients need to trust, as well.
The financial world provides a multitude of options and you probably already know of, or at least heard of, some of the larger names: Fidelity and Schwab are two of the largest.
If you’re looking for a custodian for your clients’ assets, here’s a checklist of things to look for:
1. Regulation. Who regulates the firm? You will always want to work with a regulated custodian, since they’re typically audited on an annual basis, which can help ensure that your clients’ assets are being properly safeguarded.
2. Brand Name. Look for a well-known name and a recognizable brand. Does the financial institution you’re looking into have a well-established managerial/advisor relationship? Has the institute provided optimal services in times past?