July 1, 2009
We have the ability to directly debit client accounts per client approval for our management fees. We consider our relationship to be one of portfolio management not one as a custodian. The directory of finance and investment terms defines custody as "a bank or other financial institution that keeps custody of stock certificates and other assets of a mutual fund for an individual, or corporate client"...we do not do that.
We as an SEC registered RIA do not maintain custody by definition. To consider us a custodian simply by the fact that we have been "directed by out individual or corporate clients through our client agreement/contract" is ridiculous.
We strongly oppose this potential rule and hopefully our firm is added to a long list of RIA's across the country opposing this rule.
Thomas J. Lo Manto
American Portfolios Advisors, Inc.