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​Cash Sweep: A Cost of Doing Business or A Fiduciary Breach?

Creative Planning 8444 Westpark Drive, Suite 610, McLean, VA, United States

As interest rates creep lower, banks, custodians and money managers are finding creative ways to generate revenue. Though it’s not a new practice, many are forcing cash into sweep bank accounts and paying a lower rate of return than offered by comparable money markets. A recent study pointed out that the average RIA held about…

The Future of Custodial Business

Creative Planning 8444 Westpark Drive, Suite 610, McLean, VA, United States

When taking inventory of a RIA's business partners, the list may include technology providers, fund managers, research companies, compliance consultants, and headhunters. But perhaps the business partner RIAs most strongly rely upon is their custodian. Custodial services have, for years, been perceived as mostly "free" with revenue generated from transaction fees, cash spread, t​technology services,…

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