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Carta Securities LLC is proud to announce that we are now a Qualified Custodian for Registered Investment Advisors (RIA) under SEC Rule 206(4)-2.
What is Carta Securities?
Carta Securities, LLC is a subsidiary of eShares Inc DBA Carta, Inc.(Carta). As a broker dealer registered with the SEC and a member of the Financial Industry Regulatory Authority, we received approval to custody securities and can now take on a role of a Qualified Custodian, including providing custody services to Registered Investment Advisors under SEC Rule 206(4)-2.
What is a Qualified Custodian?
A Qualified Custodian holds securities, such as paper stock certificates, for customers, including RIAs. Carta Securities was approved to be a Qualified Custodian by FINRA.
How does this change Carta for me?
If you are a RIA, or your funds are managed by a RIA, you will now be able to hold and view your entire investment portfolio on carta.com. If a company in your portfolio is on the Carta platform, you can electronically accept a digital certificate.
If a company is not on the Carta platform, we will hold your paper stock certificates in a secure vault. Your digital portfolio on Carta will reflect this by identifying these certificates as “paper.” Previously, Carta had to print out these certificates and send them to a Qualified Custodian.
What’s coming next?
Currently, we are restricted to holding just securities. The next step is to upgrade our Broker-Dealer license to allow Carta Securities LLC to accept and hold customers’ cash. This is the beginning of our longer-term plan to create a public and private full-service brokerage for our end users.
Nothing contained in this post constitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument.
Carta Securities LLC, Member FINRA and SIPC.