As mentioned in our previous article, safeguarding our clients’ assets is of significant importance to us. Our client’s assets are held in custodial accounts with a regulated, chartered trust entity, and all assets are off-balance sheet. But what does this mean, and why is this practice so important? In this article, we'll explore the concept of holding assets off-balance sheet and discuss the benefits it provides for clients.
The Concept of Off-Balance Sheet Assets
Holding client assets off balance sheet means that assets are not recorded on the company’s financial statement and are not used by the company to impact the company’s financial ratio or leverage. By keeping client assets off-balance sheet, we ensure that our financial standing does not influence the safety and security of our client's investments.
In the financial industry, maintaining client assets off-balance sheet is an important aspect of risk management because it helps protect clients' assets from potential financial distress faced by the company, ensuring that client investments remain secure.
Why We Keep Client Assets Off Balance Sheet
iTrustCapital keeps its client assets off-balance sheet for the following reasons:
- Trust, Transparency, and Security: By maintaining client assets off-balance sheet, we aim to foster and sustain trust with our clients while emphasizing transparency and security. We ensure that our clients' assets remain unexposed to risks linked to our financial health and do not leverage them. This approach demonstrates our firm commitment to protecting clients' investments, maintaining an open, honest relationship with them and prioritizing the security of their assets throughout our operations.
- Regulatory Compliance: Off-balance sheet management of assets enhances any regulatory supervision and adherence. Regulatory agencies are increasingly keeping a close watch on financial institutions to ensure the appropriate management of clients' assets while averting the negative effects of fraud, mismanagement, or insolvency on client funds. By holding client assets off-balance sheet, financial service providers can effectively satisfy regulatory prerequisites and make audits and inspections by relevant authorities more straightforward.
Conclusion
In summary, our decision to keep client assets off-balance sheet is a crucial move that benefits the company, but most importantly our clients. This practice confirms iTrustCapital’s commitment to security, trust, regulatory compliance and financial stability. We pride ourselves on ensuring that our clients can rest assured with peace of mind and confidence, knowing that their assets are well-protected.
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DISCLAIMER
This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.
iTrustCapital is a cryptocurrency IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not affiliated with and does not endorse any particular cryptocurrency, precious metal, or investment strategy.
Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.
Some taxes and conditions may apply depending on the type of IRA account. Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment or tax advice. Consult a qualified legal, investment, or tax professional.
iTrustCapital makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrustCapital disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.
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