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May 23, 2018

Know-Brainers: Piecing Together the Carroll Financial Puzzle

Carroll Financial Puzzle

Here’s a quick breakdown of the names and functions you may need a refresher on piecing together the Carroll Financial puzzle:

Who is Pershing?

Pershing LLC is a subsidiary of The Bank of New York Mellon Corporation. Pershing is the custodian of your assets. They are the financial institution responsible for safeguarding your money. BNY Mellon is the world’s largest global custodian with multiple internal controls and regulatory oversight to help maintain security and stability.

Things to note:

  • Pershing is a member of the Securities Investor Protection Corporation (SIPC), which protects securities customers up to $500,000 (including $250,000 for cash claims).
  • When you need to deposit money into an account, your check should always be payable to “Pershing LLC”.

Bottom Line: Pershing is the custodian responsible for safekeeping and holding your assets.



Who is Cetera?

Cetera Advisor Networks, LLC (“Cetera”) is the broker-dealer through whom we offer investments. Like all broker-dealers, they must undergo regular auditing and are required to meet specific net capital requirements. Cetera is a member of FINRA/SIPC, which regulates member brokerage firms and exchange markets.

Things to note:

  • Cetera sends your monthly and year-end statements. They also send disclosures, confirmations, prospectuses, proxies, tax documents and other information related to your account. Cetera sends this information either by mail or online through NetXInvestor.
  • NetXInvestor is the online platform that allows you to see your account information. If you ever have trouble logging into your account, we can provide a help number to contact Cetera.

Bottom Line: Cetera is your broker-dealer. They send your monthly statements and information regarding your account either by mail or online.



Who is TriState Capital?

TriState Capital works with Cetera to provide liquidity options that clients may not know about. For example, they offer a securities-backed line of credit as a borrowing tool and flexible lending solution. This provides liquidity to funds without disrupting your investment objectives and without requiring the immediate sale of securities.

Things to note:

  • Multiple portfolios can be used as collateral
  • Only non-qualified accounts qualify as an eligible security
  • Individuals, entities, and trusts are eligible to borrow and pledge

Bottom Line: Several clients have taken advantage of this liquidity option offered through TriState Capital. If you think you might benefit from a securities-backed line of credit, feel free to reach out to either me or Jonathan for more information.



Who is Carroll Financial?

Carroll Financial serves as your financial advisor and operates at arms-length from your money. Our firm is an independent Registered Investment Advisor (RIA) registered with the Securities and Exchange Commission (SEC).

Things to note:

  • We provide our own version of an online viewing platform called Black Diamond.
  • When you open a managed account at Carroll Financial, we are acting as fiduciaries – meaning we are required to act solely in your best interest when offering personalized financial advice.

Bottom Line: We understand that there are several different entities involved in our relationship with you as our client. If you still have lingering questions, I’d be happy to help answer them. I hope this served as a quick refresher on how each piece fits into the puzzle!


From the desk of Courtney Stutts


For more frequently asked questions please visit our FAQ page or contact us.


Carroll Financial, Financial Literacy

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