About Folio Institutional
Folio Institutional is a division of FOLIOfn Investments, Inc., the custodian your advisor has chosen to hold and support management of your investment assets.
Founded in 2000 by Steven M.H. Wallman, a former commissioner of the U.S. Securities and Exchange Commission (SEC), we have been a self-clearing broker dealer and a direct member of the Depository Trust & Clearing Corporation (DTCC) since 2001. Today, we provide custody and brokerage services for billions of dollars of investor assets.
We provide you with direct, independent online access to view your investments, receive tax information, monitor performance, vote proxies, or take other actions not assumed by your advisor.
We are a member in good standing of the Financial Industry Regulatory Authority (FINRA), The independent, non-governmental regulator for all securities firms doing business with the public in the United States, and are subject to oversight by the SEC, FINRA, and various state securities regulatory agencies. As a clearing broker-dealer, we are subject to periodic financial audits performed by the SEC and/or FINRA.
With access to innovative, patented online brokerage and investing solutions, advisors can efficiently maintain diversified portfolios of securities, retain hands-on control over investments, and utilize tools to manage tax liabilities, produce analytical reports, conduct compliance-type reviews, and take many other actions for the benefit of their client.
We are an ideal match for advisors and their clients seeking an established, well respected custodian for client assets, and a cost-effective portfolio management, investment, and high-end client services platform. Folio Institutional provides advisors with powerful tools to manage diversified strategies for clients.
THE FOLIO ADVANTAGE
Folio Institutional provides secure asset custody and a state-of-the-art, patented portfolio management, trading, and brokerage platform to support your investing needs. Advisors can use our platform to build and manage integrated investment portfolios called “folios” that can contain stocks, ETFs, or mutual funds while delivering better control and greater transparency for clients at a lower cost. We believe Folio Institutional is the most complete solution available for advisors seeking to meet the growing needs of today’s more sophisticated and demanding investors.
CUSTODIAL ACCOUNT SERVICES
Folio Institutional provides asset custody, low-cost order execution, and commission-free window trading of single securities and whole portfolios. We also provide performance, tax, and transaction reporting, and analytical tools on our simple-to-use platform. We offer clients and anyone the designate direct, independent, online access to custodian issued statements, tax documents, and proxy voting. We provide custody and trade execution services to advisors whose clients invest in equity securities, mutual funds and ETFs.
While your financial advisor remains the primary point of contact for all of your investment accounts, as a custodian, we maintain separate and independent records of all important account information and provide online access to statements, confirmations, tax documents, transaction history and more. We also offer a feature called Folio Vote that provides you or anyone you designate with information about upcoming corporate actions affecting your investments and allows proxy voting directly online.
ACCOUNT PROTECTION and SECURITY
Our custodianship over your securities and cash are covered by multiple forms of insurance.
SECUTITIES INVESTOR PROTECTION CORPORATION (SIPC)
We are a member of SIPC, which protects the securities and cash each client brokerage account up to $500,000 (including up to $250,000 protection for cash in an account). SIPC protection wards against losses stemming from the financial failure of member brokerage firms. A brochure explaining SIPC coverage is available on the SIPC website (www.sipc.org).
SUPPLEMENTAL INSURANCE COVERAGE
In addition to the required SIPC coverage, we have purchased from underwriters at Lloyds of London supplemental customer securities insurance with a total aggregate limit of $50 million. This coverage is limited to a combined return to any customer from SIPC and certain underwriters at Lloyds of London of $10 million each. Neither SIPC nor the supplemental insurance coverage protects against losses from the decline in the market value of securities.
BLANKET FIDELITY BOND COVERAGE
We maintain a Blanket Fidelity Bond as required by applicable regulation.
DIRECTORS & OFFICERS AND PROFESSIONAL LIABILITY COVERAGE
We maintain, in addition to our Blanket Fidelity Bond Coverage, policies from Chubb covering Directors and Officers Liability and from Lloyds of London covering Professional Liability.
FEDERAL DEPOSTI INSURANCE CORPORATION(FDIC)
Through a unique FDIC-insured cash sweep program, cash deposited with us in excess of investment requirements that we do not hold as part of the program is automatically distributed across two or more domestic banks that pay interest on those deposits. By depositing cash with multiple banks, we are able to ensure that cash in client accounts is covered by FDIC insurance at levels not available when depositing at a single bank. For current coverage amounts and a list of participating banks, visit www.folioinstitutional.com and select Advisor Features or visit www.folioclient.com and select Account Features. Cash we hold is covered by SIPC insurance.
Each bank in the cash sweep program is FDIC-insured. The FDIC is an independent agency of the federal government, created in 1933 to help preserve and promote public confidence in the U.S. financial system. One of it’s primary duties is to insure deposits in banks and thrift institutions for at least $250,000. The FDIC directly examines and supervises member banking institutions. The aggregate amount of FDIC insurance available to each client is dependent upon a number of factors, including the number of banks participating in the cash sweep program, the amount of cash held by a client in another account at a participating bank, and the amount of cash we hold as part of the program. Either a client or any advisor on the client’s behalf can request that cash in the client’s account not to be swept to a particular bank, if the combined total of all of the client’s deposits might exceed FDIC coverage at that bank. If you would like more information about FDIC insurance, please visit www.fdic.gov.