At The Trust Company, our clients have found that there doesn’t have to be a tradeoff between safety and convenience. Everyone wants a carefree experience and easy access to their funds, while no one wants to worry about the safety of their hard-earned dollars entrusted to a financial institution.
Last year, several regional banks were under considerable stress. A number of them closed, and the FDIC stepped in to cover account losses around the country. Particularly during periods of market turbulence, the topic of financial institutions’ safety and soundness comes to the fore. Some investors spread funds across multiple banks, credit unions and brokerage firms in an effort to reduce the risk of losing money in the event of insolvency of those financial institutions. This can lead to an increasingly complex and stressful financial situation for you or your loved ones responsible for tracking those accounts. Consolidating most assets in one financial institution like The Trust Company can help avoid that headache.
For trust companies like ours, FDIC (Federal Deposit Insurance Corporation), NCUA (National Credit Union Administration) and SIPC (Securities Investor Protection Corporation) insurance limits are unnecessary. This may be surprising, but here’s why. When you deposit funds into a bank account or have assets in a brokerage account, you have in effect given ownership of the assets to the bank or brokerage firm. You have become a creditor to the firm. They in turn loan your money away or use your securities in securities lending. So, your assets are held at the bank or brokerage firm under the company’s name, rather than your own. Therefore, insurance is needed in the event the company experiences a financial crisis.
However, The Sanibel Captiva Trust Company (including its divisions – Naples Trust Company and Tampa Bay Trust Company) is a Florida State Chartered, independent, and privately-held trust company. The very structure of trust companies (relative to banks, credit unions and brokerage firms) is reassuring to clients. Since we are not a bank, we do not lend clients’ assets for mortgages, auto and personal loans, but leave them in their investment accounts where they continue to produce results, following the guidelines of each client’s investment policy statement.
Also, The Trust Company invests in liquid investments, allowing clients to access their funds typically within a few business days. However, clients should still keep in their checking or savings account appropriate cash reserves for three to six months’ worth of anticipated living expenses depending on their situation.
Other safeguards that protect Trust Company clients include regulatory oversight and thorough audits by the State of Florida Office of Financial Regulation. We additionally enlist an independent internal audit firm as an extra layer of review and security. To protect against fraud, we apply segregation of duties through partnering with a third party for “back office” operations and have a separate independent audit of that firm’s activities specific to the support provided to The Trust Company. Additionally, we carry business insurance coverage and just as important, we have an investment philosophy that is transparent, well-diversified and easy to understand.
Finally, The Trust Company is owned by our holding company, SanCap Group, Inc., which has a variety of shareholders including our employees, board members, advisory board members and their families who all have a vested interest in the reputation and success of this company.
Know that The Trust Company is strong and sound, and our team is here to serve as your fiduciary, requiring us to make financial decisions in your best interest. We would be pleased to assist you in any way, giving you peace of mind when it matters most. Contact us at www.sancaptrustco.com
LEGAL, INVESTMENT AND TAX NOTICE: This information is not intended to be and should not be treated as legal advice, investment advice or tax advice. Readers, including professionals, should under no circumstances rely upon this information as a substitute for their own research or for obtaining specific legal or tax advice from their own counsel.
Not FDIC Insured | No Guarantee | May Lose Value
The Sanibel Captiva Trust Company is an independent trust company with $4.5 billion in assets under management that provides Family Office and Wealth Management Services, including investment management, trust administration and financial counsel to high-net-worth individuals, families, businesses, foundations and endowments. Founded in 2001 as a state-chartered independent trust company, the firm is focused on wealth management services that are absolute-return oriented and performance driven. The Naples Trust Company and The Tampa Bay Trust Company are divisions of The Sanibel Captiva Trust Company. Offices in Sanibel-Captiva, Fort Myers, Naples, Marco Island, Tampa, Belleair Bluffs and Tarpon Springs. www.sancaptrustco.com
