BROKER-DEALER & RIA MODEL
Boreal Capital Management Miami has developed a platform providing with Broker-Dealer and RIA (Registered Investment advisor), offering a fully disclosed business model and clearing through Pershing.
| RIA | Broker-Dealer | ||
| Registered Investment Advisor (RIA) | Standards of Investment Advice | Compensation | |
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Regulation of an RIA is dependent on the firm’s level of assets under management. Firms with assets under management of less than $100 million are regulated by their state’s securities agency. Firms with assets under management of more than $100 million are regulated by the Securities and Exchange Commission (SEC). BOREAL is regulated by the SEC.
RIAs are subject to a “fiduciary” standard when servicing their clients. This means that their investment recommendations have to be in the best interest of their clients and that their clients’ interests must come first.
BOREAL RIA charge a management, advisory o administrative fee for their service as a percentage of the assets.
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Stocker-Brokers are regulated by the SEC under the self-regulatory organization called the Financial Industry Regulatory Authority (FINRA).
Brokers are held to a “suitability” standard. The suitability standard means that brokers make investment recommendations that are reasonably suitable for their clients’ financial objectives and needs.
Brokers are compensated by charging a commission on the products they sell. Commissions can be flat fees charged for making trades or can be based on the amount of the trade.
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| RIA | ||
| Registered Investment Advisor (RIA) | ||
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Regulation of an RIA is dependent on the firm’s level of assets under management. Firms with assets under management of less than $100 million are regulated by their state’s securities agency. Firms with assets under management of more than $100 million are regulated by the Securities and Exchange Commission (SEC). BOREAL is regulated by the SEC.
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| Broker-Dealer | ||
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Stocker-Brokers are regulated by the SEC under the self-regulatory organization called the Financial Industry Regulatory Authority (FINRA).
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| RIA | ||
| Standards of Investment Advice | ||
|
RIAs are subject to a “fiduciary” standard when servicing their clients. This means that their investment recommendations have to be in the best interest of their clients and that their clients’ interests must come first.
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||
| Broker-Dealer | ||
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Brokers are held to a “suitability” standard. The suitability standard means that brokers make investment recommendations that are reasonably suitable for their clients’ financial objectives and needs.
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| RIA | ||
| Compensation | ||
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BOREAL RIA charge a management, advisory o administrative fee for their service as a percentage of the assets.
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| Broker-Dealer | ||
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Brokers are compensated by charging a commission on the products they sell. Commissions can be flat fees charged for making trades or can be based on the amount of the trade.
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HYBRID RIA
- A Hybrid RIA is registered as both and RIA and a broker/dealer. This dual registration allow advisors to operate both a fee- and comision-based practice.
- Clients, particularly high net worth clients, are becoming more sophisticated, and their needs are becoming increasingly complex. A hybrid advisor is better suited to offer a broad range of advice-driven strategies and solutions. A hybdrid advisor can provide sound guidance on all aspects of a client’s financial position, including wealth management and inter-generational transfer.
- BOREAL RIA model, advisors have the opportunity to keep some, or all, or their commisions-based business
PERSHING: THE TRUSTFUL PARTNER
Thanks to an agreement between Boreal and Pershing, all the client accounts at US Boreal Capital Management are held and securities are cleared through Pershing, LLC, subsidiary of The Bank of New York Mellon Corporation and member of the New York Stock Exchange.
CLEARING & CUSTODY
For more than 60 years, Pershing’s name has been synonimous with high quality executions offering flexible order entry, expert execution and settlement and technology and resources that translate into prompt, professional trading.
As the world’s leading correspondent clearing firm, Pershing provides integrated, multilingual, multicurrency capabilities including custody, settlement, clearing, brokerage, execution in 45 countries and reporting services.
Pershing's core competencies and technologies include:
- Foreign Exchange
- Performance Measurement
- Fixed Income Products
- Securities Lending
- Liquidity Solutions
- Trade Execution
- Wealth Management
- International Securities
- Asset Management
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PERSHING ASSET PROTECTION
BNY Mellon’s Pershing has been a leading global provider of financial business solutions for over 75 years and serves many of the world’s most respected financial organizations. We remain committed to the safekeeping, servicing, segregation and reporting of our global client assets.
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Financial Strength
Pershing’s core financial strength provides the first measure of protection for our global client assets. Our parent company, BNY Mellon, is a leading provider of financial services for institutions, corporations and high-net-worth individuals.
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Evaluation and Segregation of Assets
As required, Pershing segregates investor assets, which are fully paid-for, from its own assets. Therefore, in the unlikely event of the financial failure of Pershing, investors’ fully paid-for assets will remain separate from Pershing’s own assets. In addition to this, Pershing takes the following measures to protect investors’ assets
- Annual audit by a major independent audit firm and the audit team at our parent company, BNY Mellon
- An annuel SAS 70 Type II audit is performed (as required) by a major independent audit firm to provide additional evaluation of the design and operating effectiveness of Pershing’s internal controls related to:
- Account transfers
- Clearance and settlement
- Confirmations and cash management functions
- Corporate actions
- Customer billing
- Foreign exchange and prime brokerage controls
- Interest
- Margin monitoring
- Order and trade processing
- Physical custody
- Pricing
- Statements
- Pershing is required to maintain enough liquid assets, net of any liabilities, to ensure the return of investors’ fully paid-for assets in the event of Pershing’s failure and liquidation
- Quarterly vault inspection and securities verification to confirm custody of fully paid-for investors assets
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SIPC® Coverage
Pershing is a member of the Securities Investor Protection Corporation (SIPC®). As a result, securities in your account are protected up to $500,000 (of which $250,000 can be for claims for cash awaiting reinvestment). For details, please see www.sipc.org. (Please note that SIPC does not protect against loss due to market fluctuation)
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Excess of SIPC Coverage Led by Lloyd’s of London
An investment firm’s most critical obligation is to ensure the highest level of safety for client assets. Our client brokerage accounts are held by, and security transactions are handled by, Pershing, LLC, the world’s largest securities clearing firm. Pershing is an affiliate of BNY Mellon, the nation’s oldest bank, founded in 1784. Pershing is a member of the New York Stock Exchange and every other major U.S. securities exchange.
Since 1939, Pershing has been a leading provider of financial business solutions focused on the segregation, safekeeping, servicing, and reporting of client assets in their custody. Please refer to Pershing’s Statement of Financial Condition for additional information.
Pershing’s parent company, BNY Mellon, has a capitalization of approximately $41.9 billion as of June, 2019, and holds $35.5 trillion in assets under custody and administration as of June 2019. Please refer to BNY Mellon’s website for the current financial statements and reports.
ABOUT BANK OF NEW YORK MELLON
- Trading under the NYSE ticker symbol BK, the Bank of New York Mellon is leading provider of financial services for institutions, corporations and high net worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client focused team.
- Founded by Alexander Hamilton in 1784, Bank of new York Mellon is the oldest US banking insitution. With locations across 6 continents in 34 countries and a worldwide staff of more than 50,000 employees, the bank has $28.5 trillion in assets under custody and administration, and $1.7 trillion in assets under management.