In last week's episode, we looked at the first three questions you should ask when you are evaluating the safety of your ownership of assets purchased for you by an investment manager.  

We talked about:

  1. The types of accounts you can have with the manager
  2. How Your Ownership is Represented in the underlying assets based on the account type; and, 
  3. What Records You must Have as Evidence of your Investment with the manager

In today's episode, we continue with 6 further questions you should ask and what you should look out for to assure yourself that you have nothing to worry about when it comes to your ownership of the underlying assets. And these are:

  1. Are the assets separate from the manager?
    • Why? If mixed with the manager’s assets it becomes difficult to lay claim to them in the event that the manager goes out of business and its assets need to be liquidated.
  2. What legal ownership documents are available for the assets?
    • Why? That is what you can use to lay claim to the assets purchased for you by manager
  3. Where are the original ownership documents kept
    • Why? So you know where to get them if needed based on the kind of account you have
  4. Can I take possession of Assets from manager?
    • Why? So you know how you can get the assets if needed and in what form.
  5. What if the manager goes out of business?
    • Why? So you know how assets are protected even when the manager is no longer in business
  6. What if custodian goes out of business – If you use one?
    • Why? So you can know how your assets in safekeeping are still protected or not if the safe keeper no longer exists.

So you see that once you go through these checks with each account you have and hopefully everything checks out just us we have outlined here you know you have nothing to worry about when it comes to protection of your ownership of those investment assets even when the investment manager's goes out of business.

Your next concern will now be whether you are confident that the investments that have been made for you will stand the test of time. This will be our topic for discussion in the next episode where we look at how you can evaluate the quality of the assets in your account.

Download your free copy of the infographic of the 9 questions to ask below.