You’ve Decided to Take Custody…Now what?

By Barbara Kotlyar, Senior Marketing Manager on Wednesday, February 23rd, 2011

I recently had a chance to sit down with Tim Jackson of Carlson Capital Management to discuss the driving factors of his firm’s decision to take custody, and the steps they took in the process of doing so. 

Why did your firm decide to take custody? What are the benefits for your clients?

We are an integrated wealth management firm—in other words, our services not only include managing investments for our clients, but also helping them navigate terrains of retirement, tax, risk management, estate and philanthropic planning.  As wealth managers who advise our clients on all facets of their financial lives, it is a high priority for us to have access to, and ability to trade on, all of our clients’ accounts. With this access and ability to place trades directly—in accordance with their agreed upon asset allocations and Investment Policy Statements—we provide a much higher quality of service for our clients to experience.

What procedures did you put in place when you started taking credentials?

Even before setting up the accounts in BAA, we made sure to have a signed LPOA on file.

How did you choose an auditor? What criteria did you use?

Above all else, our primary focus was to find an auditor with the proper qualifications, which in this case means being a PCAOB registered independent certified public accounting firm. 

How did you communicate your decision to take custody to the SEC?

It was included as a part of our annual ADV filing. 

Does taking custody help your firm win more business?

First and foremost, it helps us deliver a complete client experience. Second, yes, it does in fact expand our business, because with the accounts in custody, they now stand under our billing umbrella.

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