To start with, it is important to understand that KeatsConnelly as the investment advisor does not have possession of your assets at any time. Your assets are held at an independent custodian such as Charles Schwab or Fidelity and in some cases National Advisors Trust Company provides additional oversight of your assets. We have provided links to documents put out by Charles Schwab and Fidelity explaining how your assets are protected with them.
In general, the custodians protect your assets in the following ways:
- Client assets are kept separate and are not comingled with their own assets
- Government insurance called Securities Investor Protection Corporation (SIPC)
- Additional insurance from Lloyd’s of London and other insurers
- Strict privacy policies
- Robust business continuity plans
In general, KeatsConnelly protects your assets in the following ways:
- We never take possession of your assets. We cannot even take checks made out to the custodian and deposit them on your behalf.
- We are prohibited from taking money out of your account by the custodian or even transferring money between accounts that are not alike, with the exception of being able to directly debit assets from your account once per quarter, if you agree in advance, in writing.
- We have a separation of duties. For example we have one person complete the paperwork and one person provides the advice. We also have others who supervise the entire process.
- There are numerous series of checks and balances.
- We have a robust compliance function that puts into place policies and procedures and periodically tests those policies and procedures to make sure they are working as designed.
- We also have our own business continuity plan.
NOTE: Your assets are not protected from bad financial markets; the value of your assets may go down.