Strength, stability, and protection
At Altruist, we hold our custodial role and the protection of client assets in the highest regard.
We adhere to rigorous internal practices and business standards to ensure the safety of client assets.
Access to FDIC coverage for eligible assets swept to FDIC Member partner banks, emergency lines of credit, daily stress testing, weekly compliance requirements with FINRA and the SEC, comprehensive security and encryption, an asset protection guarantee and excess SIPC coverage (in addition to industry standard coverage, detailed below) are among the measures we take to secure client assets and provide trust in our role as a custodian.
Long-term financial strength
Altruist is committed to maintaining our financial strength, and we have confidence in our ongoing financial well-being.
Altruist maintains multiple banking relationships at top tier financial institutions, with all regulatory capital held at BMO Harris and operating capital at multiple top-tier banks. We are well funded and have a robust balance sheet, having raised approximately $600 million in total capital over the years from renowned partners including Adams Street, ICONIQ Growth, Declaration Partners, Granite Capital Management, Insight Partners, Sound Ventures, Vanguard, Venrock, and more.
Altruist also has a comprehensive liquidity and risk management program to ensure we satisfy all obligations under any market conditions. And in the very unlikely chance we’d ever need it, we have available lines of credit that will provide emergency funding in the event we experience extreme market stress conditions.
Altruist currently works with over 4,900 independent advisors, and is the third largest custodian by firms served. Although, as a private company, we don’t publish the total amount of assets on our platform, 2024 marked our third consecutive year of 300%+ AUM growth.
Strengthening financial stability through business practices focused on fiscal well-being
Strategic debt management
Employing a disciplined approach to debt management, including optimizing debt structures, monitoring interest rates, and ensuring appropriate levels of leverage, can help maintain a healthy balance between debt and equity and minimize financial risks.
Diversified revenue mix
Striving for diversification in revenue sources can reduce dependence on a single client or market segment, improving resilience and stability in the face of economic fluctuations or industry-specific challenges.
Long-term financial planning
Developing and executing a long-term financial strategy aligned with the organization’s goals and objectives helps establish a roadmap for sustained growth, investment decisions, and risk mitigation.
Protecting
client assets
Securities Investor Protection Corporation ® (SIPC) Coverage
Altruist Financial LLC is a member of SIPC, which means securities held in your brokerage account are protected up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org.
Excess of SIPC Coverage Lloyd’s of London
In addition, Altruist Financial LLC carries an excess SIPC policy with underwriters at Lloyd’s of London, which extends the per account coverage by an additional $40 million (with a cash sub limit of $2 million), subject to an aggregate limit of $150 million across all Altruist accounts. Stock loan transactions, as well as certain mutual funds, may not be covered by the excess SIPC bond.
Altruist’s Asset Protection Guarantee
In the event a client’s cash and/or securities are lost due to unauthorized activity, Altruist Financial LLC will reimburse such losses, so long as a handful of security measures and contact information are maintained (e.g., unique password, two-factor authentication, etc.). More information about the Asset Protection Guarantee can be found at altruist.com/security.
Bank Sweep Program
The Bank Sweep Program automatically transfers or “sweeps” cash balances in enrolled client accounts awaiting investment into Federal Deposit Insurance Corporation (“FDIC”) insured bank deposit accounts among multiple FDIC-insured banks (“Participating Banks” see the Altruist Financial LLC Participating Bank List). Cash swept into an interest-bearing account at a Participating Bank is federally insured up to applicable FDIC limits in the event of a bank failure. Funds are not eligible for FDIC insurance until the funds arrive at the Participating Bank.
Deposits into an account enrolled in the Bank Sweep Program may take up to two business days after the required holding period before the deposit sweeps into an interest-bearing account at a Participating Bank, and such deposits will constitute Free Credit Balances until they are transferred. Funds swept into interest-bearing accounts will begin earning interest from the day they are received by the Participating Bank up to, but not including, the date of withdrawal.
Altruist Financial receives payment from each Participating Bank in connection with its participation in and operation of the Bank Sweep Program. Altruist’s payment from the Participating Bank, which is a portion of the interest earned on the deposit amounts under the Bank Sweep Program held at the Participating Bank, represents compensation for services provided in connection with the Bank Sweep Program.
Review the Altruist Bank Sweep Program Disclosure Statement on altruist.com/legal for more information.
Information and data security safeguards
Comprehensive security and encryption
Altruist engages Schellman, an American Institute Certified Public Accountant (“AICPA”) independent auditor (trusted by publicly traded companies like Box, VMware, and Avaya) to conduct a SOC 2 Type 2 examination and deliver a report on Altruist’s system of controls related to information security.
This means that an independent auditor has examined Altruist’s systems and controls for the security, availability, and confidentiality categories pursuant to AICPA standards.
Altruist’s SOC 2 Type 2 examination tests that the systems and controls related to data security at Altruist are suitably designed and operating effectively to achieve their outcomes of ensuring safe, secure, and reliable transmission and storage of data.
Altruist has cybersecurity insurance provided through Beazley, whose rating with A.M. Best is “A-Excellent-Positive Outlook.”
Every Altruist application is encrypted separately and has a unique decryption key managed by one of the leading third-party enterprise infrastructure security solutions. This method ensures that no employee has direct access to decryption keys and that connecting data across applications requires multiple levels of authorization. When decryption is required, it’s documented with an audit trail that captures exactly who is doing what, and when.
A few highlights on data security
We encrypt all Personally Identifiable Information (PII) with Advanced Encryption Standard 256–the standard for highly regulated industries because it is virtually uncrackable without the decryption key which is rotated quarterly.
Unlike PII, which can be decrypted with a key, at Altruist passwords are always hashed. A hash is a one-way security function that cannot be reversed, making it impossible for anyone — hackers or employees — to expose client passwords.
We monitor our networks 24 hours a day, 7 days a week, 365 days a year to continually assess the security and health of our platform with instant, automated alerts to security personnel.
We use intrusion and prevention systems that are configured to continuously monitor and analyze network traffic and system activity.
We employ user access reviews of network and application accounts at least annually to ensure appropriate access is maintained.
Our commitment to privacy
At Altruist, we hold privacy as one of our highest values. As a custodian trusted by financial advisors to safeguard their clients’ assets, we understand the importance of protecting your personal information. We are committed to maintaining the confidentiality, integrity, and security of all the data entrusted to us.
You and your clients’ personal information is treated with the utmost care and is accessed only by authorized personnel who are bound by strict confidentiality obligations. We have implemented robust security measures to ensure that your information remains safe from unauthorized access, disclosure, or alteration.
We take pride in our transparent practices when it comes to sharing personal information. We commit to keep all customer data confidential (aside from
sharing as necessary for our everyday business purposes, as well as with third parties to provide supplemental services as requested by customers and with our affiliates for marketing purposes) and to not disclose information to any unauthorized parties without written consent, except as required by law.
To gain a comprehensive understanding of our commitment to privacy and the measures we take to protect your personal information, we encourage you to visit altruist.com/legal to review our Privacy Notice and Privacy Policy. They provide detailed information about the types of information we collect, how we use it, and the circumstances in which it may be shared.