Integrity Competence Prudence
All accounts for clients using the firm’s investment advisory services will be held at Scottrade Inc. With over 500 local branches in U.S., Scottrade has been providing brokerage services to individual investors since 1980’s. In 2005 they also began offering a low-cost custody and institutional trading services to independent Registered Investment Advisors like Grayeli Investment Management.
The accounts will remain under the clients name held with Scottrade. Using a limited power agreement only for those accounts the client will provide Grayeli Investment Management full discretion to act as a fiduciary on their behalf for making investment decisions.
Like many other brokerage firms, your accounts which according to the SEC’s Customer Protection Rule, are required to be separated from the brokerage firm’s assets are covered by Securities Investor Protection Corporation (SIPC) in the unlikely event Scottrade fails or declares bankruptcy. SIPC coverage constitutes a maximum of $250,000 in cash claims and $250,000 in securities claims totaling $500,000 per client.
Scottrade also purchased additional protection from insurer XL Group PLC in London in the amount of $24.5 million (inclusive of $900,000 in cash claims). This insurance would only be used if a claim exceeded what SIPC covered and is subject to an aggregate limit of $100,000,000 at Scottrade.
Unlike hedge funds or when using insurance products there are no lock up periods, special times to withdraw funds, or surrender charges from your accounts held at Scottrade. Moreover you are able to transfer your account to another brokerage firm at anytime of your choosing.
You will have access to your accounts 24/7 through scottrade.com. Through the site you can view your monthly statements, and all transactions made by your advisor on your behalf.