Trust Co. of America Aligns With RIA in a Box to Help Breakaway Brokers

‘Both companies get approached by brokers looking to become independent' wanting compliance help, Trust Co. says

More On Legal & Compliance

from The Advisor's Professional Library
  • The Custody Rule and its Ramifications When an RIA takes custody of a client’s funds or securities, risk to that individual increases dramatically. Rule 206(4)-2 under the Investment Advisers Act (better known as the Custody Rule), was passed to protect clients from unscrupulous investors.
  • Risk-Based Oversight of Investment Advisors Even if the SEC had a larger budget and more resources, it is doubtful that the Commission would have the resources to regularly examine all RIAs. Therefore, the SEC is likely to continue relying on risk-based oversight to fulfill its mission of protecting investors.

Trust Co. of America announced Tuesday that it has partnered with the compliance firm RIA in a Box to help breakaway brokers in Trust Co.’s Advisor Pathways program decide whether they want go independent, join an existing RIA firm, or sell their practice and exit the market.

Josh Pace, senior vice president of Business Development for Trust Co., says that the Denver-based custodian started talking about forming an alliance with RIA in a Box, based in Manhattan, last December, as “both companies get approached by brokers looking to become independent and looking for help with registration, compliance, custody and technology” issues.

The alliance, Pace says, strengthens both firms’ offerings. “Working together, Trust Co. of America and RIA in a Box can offer a package of services to advisors who want to start their own RIA and focus on what each company is good at.”

The Advisor Pathways program, Pace continues, “is geared toward those breakaway brokers who are thinking of going independent and are not sure whether to start their own RIA or join an existing RIA. For those who want to join an existing RIA, Trust Co. of America can help match them up with established RIA’s on the Trust Co. of America Platform.”

For brokers looking to start their own RIA, Trust Co.’s partnership with RIA in a Box will help offer those brokers “a solution to getting registered and working through the compliance process. Once those brokers become RIAs, they have the ability to use Trust Co. of America for their custody and technology platform,” Pace adds.

A "handful of advisors" are already interested in taking advantage of the alliance, Pace says, and “we hope to have a few signed in the near future.”

The alliance with RIA in a Box is another strategic move Trust Co. is making to help solidify its foothold in the RIA marketplace. In late April, Denver-based Trust Co. announced that it had added eight new advisors to its custodial platform, bringing total assets under custody to $12 billion.

“We’re proud of the results we achieved in Q1, particularly in reaching a record level of assets under custody, which is a testament to our clients’ success,” said David Barry, Trust Co. of America’s CEO, in a statement. “In partnership with our RIAs, we will work hard to help continue their momentum and growth.”


Check out AdvisorOne's Going Independent channel.

Reprints Discuss this story

Most Recent Videos

Video Library ››