Custody Accounts

The other day an American Banker headline proclaimed that venerable Bryn Mawr Trust obtained a third of its revenue from wealth management and hoped for even more.

Judging from Bryn Mawr Trust's attractive web site, custody accounts for investors receive marketing emphasis. A well-crafted sales pitch appears in the latest issue of their trust newsletter available online. You can view it here.

"In short," the article concludes, "Bryn Mawr Trust’s Custody Division serves the need for a security guard, financial secretary, bookkeeper, stockbroker, and general housekeeper, with faithful adherence to investor directives and with timely and accurate processing of all transactions."

Nicely said.

Question is, do today's High Net Worth Individuals worry about timely crediting of dividends? Do they fear their brokers will go bust, forcing them to battle with the SIPC to get their assets back?

In short, are custody accounts still a viable product in the 21st century?