Frequently Asked Institutional Custody Questions
1.) Does the customer cash on hand have any FDIC Insurance?
The cash that is held with The Kingdom Trust is placed in financial institutions that are covered by FDIC. The account is structured in a manner so that there is $250,000 of FDIC coverage per account with Kingdom Trust.
2.) Is the customer cash held in a sound financial institution?
Kingdom Trust ’s policies provide that all cash that the customers deposit with Kingdom Trust will be deposited daily into a in an interest bearing, FDIC insured, demand account at a bank or banks that Kingdom chooses. The interest earned on this account will be paid to our customers on a monthly basis. Kingdom Trust will only use depository banks with a Bauer Financial rating of 3.5 or higher. By utilizing this minimum, we will only utilize banks that the rating agency considers Good, Excellent, or Superior. The bank ratings will be monitored continuously and reported to Management quarterly for review.
3.) Is The Kingdom Trust Company regulated and by who?
The Kingdom Trust Company is regulated by South Dakota Division of Banking.
4.) Why a South Dakota Trust Charter?
The State of South Dakota has become the national leader in the formation and administration of Trust Charters. The law makers in South Dakota recognized the opportunities that exist in the Trust world and have built an infrastructure that supports our industry. Their diligence and foresight has proven them to be the leader regarding the successful administration of Trust Companies. It was clear to us that the South Dakota Division of Banking understands the regulatory, audit, and the operational requirements of a successful Trust Company.
5.) Does Kingdom Trust Company have adequate insurance coverage?
The Kingdom Trust Company and My Retirement Account Services, LLC currently carries $1MM in Errors and Omissions Liability, $1MM in directors and officers, Kentucky Workers Compensation Insurance and a Business Owners Policy, and a General Liability policy.
Kingdom Trust will maintain, pursuant to South Dakota law, a $1 Million directors and officers/errors and omissions insurance policy and also a $1 Million fidelity bond. It also will have other insurance covering general liability, property insurance (for loss of premises or other assets, etc.), and a worker’s compensation insurance policy for its employees.
Kingdom Trust and My Retirement Account Services, will have the following insurance coverage:
• WORKERS COMPENSATION,
• EMPLOYER’S LIABILITY,
• AUTOMOBILE LIABILITY,
• COMMERCIAL GENERAL LIABILITY,
• UMBRELLA/EXCESS LIABILITY OF $1,000,000,
• PROFESSIONAL LIABILITY AND ERRORS AND OMISSIONS OF $1,000,000, AND
• FIDELITY BOND/BLANKET CRIME COVERAGE OF $1,000,000.
6.) How are my clients assets protected in the event The Kingdom Trust Company closes?
It is important to note that The Kingdom trust company acts as a custodian for the assets held inside the accounts. These are not asset of The Kingdom trust Company and are not held in a corporate capacity. In the event that The Kingdom Trust Company closes the assets would be transferred to another custodian for the benefit of the accountholder.
7.) Does Kingdom Trust interface with any Portfolio Management Systems?
Kingdom Trust Company, as an Independent Qualified Custodian, has invested in building a bridge with Advent Software, Inc. to provide a value added technology resource for our advisors and sponsors who are seeking an Institutional Custody Solution. This technology will allow you to transistion information seamlessly between our organizations and to provide up to date information to your clients daily. There has been data feed built by By All Accounts so that information may be pulled from our systems and integrated with many PMS that they interface with. In addition, Kingdom Trust Company is able to export files that are compatible with PortfolioCenter. This ability to aggregate client information is vital when using Kingdom Trust as a Custodian on held-away accounts.