There has been many significant reactions to the main guardians of Late RIA, mainly on two issues:

Criticism seems wrong, however, considering the universal love of our industry for “free” custody services. When guardians eliminated shares trade committees, ETFs and options at the end of 2019, it represented a major change in our industry. While Rias cheered the fact that their custody costs were falling sharply, this change would also say that guardians were eliminating the leader of the main income for their businesses. Once the trade committees were eliminated, only three other areas for the guardians to earn income remained:

The guardian did not become “free”. The industry simply exceeded the cost from direct costs, transparent-comctions that appear in a customer statement-in indirect, non-transparent costs that exist in the background. Custodians still have to make money. And as someone who works in a Ria who relying on our caregivers every day, I want our guardians to make money. I need them to continue investing in online security for our customers' assets; I want them to have enough profits for their service team staff appropriately so that our service questions and requirements are addressed in a timely manner. I hope they continue to provide training resources for our industry, with valuable comparison studies, persuasive conferences and counseling resources.

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Without the infrastructure and safety of the assets provided by the main guardians, independent rias cannot flourish. When I hear councilors mourn that they think it is their right given by God to have access to services without care, I shake my head into disbelief. This is the equivalent of starting a business for creating widget and receiving the universe to deliver the factory free-where would you make your widget if you didn't have a factory or a warehouse to produce them? Which business owner assumes that they have no cost of goods sold?

Customers require assets security, registries, loan solutions, mobile deposits and banking products such as controls, debit cards and credit cards. Rias themselves do not offer these solutions. It is the guardians who make it possible. How do $ 500 million compete with 13 employees with publicly traded international property management firms such as Merrill Lynch, JP Morgan and Goldman Sachs? It simply could not happen without the resources provided by guardians. These resources are not “free”, and none of us should expect them to be.

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Now, do the caregivers have a competitive interest rate on money market vehicles? Absolutely. Many financial institutions are rightly imposed fines for paying market interest to retail customers. This is clearly wrong. But there is no obligation for guardians to make the automatic money laundering vehicle with the highest production of the money market fund they offer to customers.

According to Jeff Schmitt, a research analyst in William Blee, “(RIA) can continue to move money money to money market funds to earn higher yields, though this reduces the comfort of trading as this money will have to return to cleansing accounts if used to buy another security. Yes. Illegal or morally wrong? No.

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Since entry into the RIA industry in 2008, I have never understood the custody reference programs. As mentioned above, guardians provide life services for RIA and their clients, but who determined that one of those services was to solve the problem of buying our client? We all left the bracket firms because we felt that “the smallest was better”. We felt our value proposal could be handed over to customers in a more efficient way without the limitations imposed by us by large firms. We felt the value of that large brand did not exceed the bureaucratic nature of those firms. Did we really start RIAS simply because we assumed that guardians would be our main source of new customers? I don't think so.

With the great presence of the retail of each guardian, the income generated from the ri -parts of their business is quite irrelevant. We need them much more than they need us. The next time you talk to your caretaker manager, consider expressing gratitude instead of looking for more. At the end of the day, guardians owe us nothing.