610.624.1770 Info@QS2500.com Philadelphia, PA | Glen Mills, PA | Washington, DC


The fiduciary duty requires an investment adviser, by law, to act in the best interest of their clients, putting their clients’ interests ahead of their own at all times.

Under the fiduciary duty, an investment adviser must provide advice and investment recommendations that they view as being the best for the client. In addition to being obligated to put clients’ interests ahead of their own, fiduciaries must also adhere to the duties of loyalty and care. An investment adviser, subject to the fiduciary duty, is required to provide up-front disclosures to the client, before any contracts are signed to provide investment advice. These disclosures cover important topics such as the investment adviser’s qualifications, services provided, compensation, range of fees, methods of analysis, record of any disciplinary actions and possible conflicts of interest, if any. An investment adviser that has a material conflict of interest must either eliminate that conflict or fully disclose to its clients all material facts relating to that conflict.

The world of investment advice is plagued with conflicts of interest, obscure disclosure and an overall lack of transparency. Seeking out an investment adviser who acts as a fiduciary for your employees in transition, can help to eliminate many of the problems associated with commission-oriented, product-focused sales people. Because law requires a fiduciary to give full disclosure of how they are paid as well as any conflicts of interest they may have, before you do business with them, the consumer is in a better position to make an informed decision.


Administering the plan and managing the assets require certain actions and involve specific responsibilities to be in compliance with ERISA. One requirement has been expanded as recent regulations require more comprehensive written disclosures by service providers to 401(k) plan fiduciaries. The result has been additional burden on the plan fiduciary to act prudently and solely in the best interest of the plan’s participants and beneficiaries when selecting or monitoring plan service providers.

This increased level of liability positions an employer as the plan fiduciary with needing to provide employees access to specific, unbiased investment advice. Meeting your fiduciary responsibilities can be challenging and complex, with an increasing level of liability and risk of lawsuits for the plan sponsor.


Quantum Strategies can position your fiduciary responsibilities with the largest amount of relief available with our 401(k) Administrative Services. Our retirement planning experts work with you to review your existing plans or assist with establishing new plans. Quantum’s 401k consulting group acts as the investment fiduciary 3(38) and works with the board to determine if an administrative fiduciary 3(16) is desirable.

Offering a retirement plan to your employees can be a competitive component in assisting with employee retention. Making a retirement plan a part of your employee’s benefits package can position you to attract and retain top talent. The employees participating in the plan, their beneficiaries and you, the employer, all benefit when a retirement plan is in place.


We strongly believe that investors should always custody their assets with a Third Party Custodian. As part of our fiduciary responsibility, we thorough research our third party provider. We have carefully selected Charles Schwab as our custodian. Quantum Strategies focuses on the investment process and style, and Schwab focuses on the safe keeping of your assets.


Schwab is committed to staying financially strong, and we have confidence in our ongoing financial health. We run our business with a sound capital structure and position our company for long-term strength and stability. We take appropriate actions to help give our clients peace of mind about the security of their accounts.

Keeping client securities separate from broker-dealer securities

Client securities — such as stocks and bonds that are fully paid for or excess margin securities — are segregated from broker-dealer securities, in compliance with the SEC’s Customer Protection Rule. This is a legal requirement for all broker-dealers. In the unlikely event of insolvency of a broker-dealer, these segregated assets are not available to general creditors and are protected against creditors’ claims. Rigorous reporting and auditing requirements have been put in place by government regulators to help ensure all broker-dealers comply with this rule.

SIPC Account Protection

How SIPC protects customers The Securities Investor Protection Corporation (SIPC) is a nonprofit membership corporation created in 1970 by a federal statute, the Securities Investor Protection Act, to protect investments and increase investor confidence. For more information about SIPC, go to sipc.org. What SIPC does SIPC protects customers of SIPC-member broker-dealers if a firm fails financially.

– When a firm fails, SIPC typically asks a federal court to appoint a trustee to liquidate the firm and protect its customers. After customers receive securities registered in their names, the trustee distributes the remaining assets, known as the customer property, back to all customers on a pro rata basis. The trustee and SIPC will often arrange to have customer accounts transferred to another brokerage firm. Customers then have the option of staying at the new firm or moving to another firm of their choosing.

– If customer assets are unaccounted for due to recordkeeping errors or misappropriation, customers are reimbursed by the assigned trustee or SIPC up to $500,000 per customer for all accounts held in the same capacity, including a maximum of $250,000 in claims for cash. Whenever possible, the actual stocks and other securities owned by a customer are returned. If necessary, SIPC funds will be used to purchase replacement securities (such as stocks) in the open market — even if the market value of these investments has changed.

– SIPC does not cover certain types of investments, such as commodity futures contracts, fixed annuity contracts and foreign currency, or fluctuations in the market value of securities. Additional protection from Lloyd’s of London and other London insurers At Schwab, our customers receive an extra level of coverage. We’ve chosen a program led by Lloyd’s of London, a well-respected name in the insurance industry, as underwriter for additional brokerage insurance. This “excess SIPC” protection of securities and cash is provided up to an aggregate of $600 million, limited to a combined return to any customer from a trustee, SIPC, Lloyd’s, and other London insurers of $150 million, including up to $1,150,000 in cash. This additional protection becomes available in the event that SIPC limits are exhausted and there are no additional funds available from the estate of the failed brokerage firm.
How is FDIC insurance coverage determined?

The FDIC insurance limit applies to each account holder at each FDIC-insured bank. Here is how the FDIC defines coverage for different account holders by some common “ownership” types:

– Single accounts — deposit accounts (e.g., checking, savings) owned by one person. FDIC insurance covers up to $250,000 per owner for all single accounts at each bank.

– Joint accounts — deposit accounts owned by two or more people. FDIC insurance covers up to $250,000 per owner for all joint accounts at each bank.

– Certain retirement accounts — accounts such as IRAs and self-directed defined benefit contribution plans. FDIC insurance covers up to $250,000 per owner for all deposits in such retirement accounts at each bank. What FDIC-insured products are available through Schwab Bank®? All deposit accounts held at Schwab Bank, including the Schwab Bank High Yield Investor Checking® account and the Schwab Bank High Yield Investor Savings® account, are FDIC-insured. What FDIC-insured products are available through Schwab brokerage accounts? Charles Schwab & Co., Inc., acting as a deposit broker, can place deposits at FDIC-insured banks on behalf of clients. In this case, the FDIC insurance available from the bank “passes through” to the client. FDIC-insured deposits are available through Schwab brokerage accounts in two ways:

– Certificates of deposit — Schwab’s CD marketplace, Schwab CD OneSource®, enables clients to purchase CDs from FDIC-insured banks across the country. CDs purchased through Schwab, together with other deposits held at the issuing institution, are aggregated and FDIC insured up to $250,000 at each bank.1 Through Schwab CD OneSource, clients may purchase CDs from multiple banks for added FDIC coverage.

– Bank Sweep feature — If the cash feature in effect for a Schwab brokerage account is the Bank Sweep feature, cash balances are automatically swept to deposits at Schwab Bank and are FDIC-insured. Keep in mind that all deposits held at Schwab Bank — whether an account is opened directly at the bank or Schwab brokerage holds the account on the client’s behalf — are added together to determine the total amount of FDIC insurance coverage for deposits.