Asset Custody

The Independent Financial Group does not take custody of client assets at any time; nor does IFG have access to client assets.   IFG serves as the client’s advisor to help plan and implement client strategies.  Client accounts are opened in the client’s name at an independent third-party custodial firm.

An asset custodian is an institution which takes physical custody of client assets. IFG client accounts are always maintained at an independent third-party custodian in the client’s name(s). IFG does not take custody of client assets at any point; nor does IFG receive any compensation or incentives of any description from the custodians selected. IFG’s primary custodial relationship is with Pershing, a division of Bank of New York Mellon

Pershing – Division of Bank of New York Mellon (BNY)

Financial Strength and Asset Safety – Pershing is well capitalized with nearly $831 billion in assets under custody (as of September 30, 2010) and Pershing is the industry’s largest global business solutions provider, with more customers who clear through them than with any other firm. Clients’ accounts at Pershing LLC are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 of which $100,000 can be cash; and excess account protection is provided at the highest level available in the industry, which Pershing provides through Lloyd’s of London, one of the world’s best known insurance brands.

Parent Company Stability – The Bank of New York Mellon -The Bank of New York Mellon ranks among the top large-cap financial services companies and is a global financial services company focused on helping clients manage and service their financial assets. The Bank of New York Mellon has approximately $24.4 trillion in assets under custody and administration (as of September 30, 2010) and was selected by the U.S. Government to provide the administration for the TARP program.

An Introduction to The Bank of New York

Unlike other major banks, The Bank of New York is primarily a provider of global and domestic custody services, not a retail bank. The Bank is a major force in the mutual fund processing business and has a long history in the financial services arena. Highlights from The Bank’s 200+ year history include:

  • The Bank of New York was founded by Alexander Hamilton in 1784
  • It is the oldest bank in the United States
  • It is one of the oldest banks in the world
  • The Bank came into existence before the adoption of the U.S. Constitution
  • It is one of the few companies in the U.S. that has been in business for more than 200 years
  • The Bank made the first loan to the United States Government — $200,000 in 1789
  • The Bank’s headquarters are located at One Wall Street, New York, NY
  • In 1792, The Bank’s stock was the first stock traded on the New York Stock Exchange
  • The Bank is one of the largest financial holding companies in the United States
  • Global expansion began with an office in London in 1966
  • The Bank now has a presence in 33 countries

 The smart way to manage:

  • Your advisor is independent of the asset custodian.
  • Your money managers are independent of the custodian and the advisor
  • Your reporting comes from independent third parties not related to the advisor, the managers, or the asset custodian.
  • There are no ‘revenue-sharing’ or ‘back-door’ compensation arrangements.
  • All charges and compensation are transparent.

If this makes sense to you, IFG may provide the ‘right-fit’ advisory model for you.

You can schedule your introductory call here!

* The choice of asset custodian for a given client is based on a match between the custodian’s service capabilities and the individual client’s needs. IFG receives no compensation or incentives of any description from any service provider that is chosen.