Insurance & other matters FAQs

No one at Portfolio Solutions has access to the money in your account. We have limited power of attorney to do three things in a Client account; 1) trade securities with discretion, 2) request that Schwab send a check to a Client directly or to a Client's bank, and 3) to be paid a quarterly management fee based the Client contract. We have no other access or authority.

All accounts are insured on multiple levels. Charles Schwab Institutional coverage is extensive and is explained in a public brochure that is available to all investors. Portfolio Solutions also carries Errors and Omissions insurance and a separate Fidelity Bond for retirement accounts and pension funds.

Portfolio Solutions complies with all privacy laws affecting financial institutions. Each year our clients receive a Privacy Statement that outlines this  responsibility in detail. Those standards are reviewed regularly to ensure they cover all forms of communication. Briefly, we will not release any information to any person who is not directly named on your account unless we have your permission to do so, with the exception of legal and regulartory authorities.

Portfolio Solutions, LLC is a SEC registered advisory firm. All professional investment management companies are required to register with the U.S. Securities and Exchange Commission (SEC) and/or the State(s) in which the firm conducts business activities. That registration is called an ADV, and it is available in two parts. ADV Part I is basic information about the advisory business and ADV Part II explains our services and fees.  

RIAs are in the investment management business and we are regulated by the Investment Advisors Act of 1940. In contrast, brokerage firms are primarily in the financial product sales and distribution business and they are regulated by the Securities Act of 1933 as well as other laws. As an RIA under the 1940s Act, we have a higher level of fiduciary responsibility than brokerage firms. We are required by law to work in our client’s best interest. Our fee is based on assets under management (AUM) rather than the brokerage model that is tied to the sale and distribution of financial products. 

All personal including management personal are required to sign an Annual Ethics Statement that outlines our ethical standards. Everyone at Portfolio Solutions adheres to that strict ethical code as part of our daily operations.