At Fundment, we take that responsibility seriously.
Fundment combines more than a decade of experience building and operating investment technology in the United Kingdom with a U.S. registered broker-dealer approved for self-clearing. Our approach brings together regulatory safeguards, financial discipline, information security, and operational resilience.
1. Protecting your clients' assets
Client assets are held for the benefit of clients and safeguarded under applicable possession, control and reserve requirements.
As a U.S. registered broker-dealer approved for self-clearing, Fundment LLC is subject to SEC Rule 15c3-3, the Customer Protection Rule, which applies to other US carrying broker-dealers.
This establishes requirements for safeguarding customer securities and funds, including possession or control of fully paid and excess margin securities and the maintenance of customer reserve accounts where applicable.
These safeguards are intended to keep customer property separate from the firm's own business activities and help ensure that customer assets remain available to customers.
Safeguarding securities and cash
The U.S. customer protection framework requires carrying broker-dealers to maintain appropriate custody arrangements, reconcile customer positions, and account for customer funds in accordance with applicable regulations.
Fully paid customer securities are subject to specific possession or control requirements. Customer securities lending, where permitted, is governed by separate regulatory requirements and applicable customer agreements.
SIPC protection
Fundment LLC is a member of the Securities Investor Protection Corporation (SIPC).
SIPC provides protection for eligible customers when a member brokerage firm fails and customer securities or cash are missing.
Coverage is generally available up to $500,000 per customer, including a limit of $250,000 for cash claims, subject to applicable rules and eligibility requirements.
SIPC protection does not cover investment losses, market fluctuations, or declines in the value of securities.
For further information, visit www.sipc.org.
Cash management
Fundment's approach to cash management includes consideration of FDIC-insured bank deposit solutions for uninvested customer cash.
Any such program would be subject to separate terms, participating bank arrangements, and applicable FDIC insurance limits. Details will be made available when a program is introduced.
2. Security built into the platform
Protecting client assets also means protecting the information, identities, and instructions associated with those assets.
Fundment's technology is developed with security as a fundamental design consideration, supported by controls addressing system access, sensitive information, and operational risk.
Protecting access
Our security framework incorporates identity verification, authentication, and access management measures designed to limit unauthorized access to systems and customer information.
Permissions are managed according to business responsibilities, with controls intended to restrict access to the information and functions individuals require.
Protecting information
Encryption and information security controls are used to protect sensitive data and support confidentiality and integrity.
Our approach encompasses the protection of information during transmission and storage, together with monitoring, vulnerability management, and security oversight.
Independent assessment
Independent assessment is an important part of maintaining confidence in technology controls.
Fundment is undertaking a SOC 2 Type I examination with A-LIGN, an independent assurance provider. The examination assesses the design of relevant controls against recognized criteria at a specified point in time.
We regard independent assessment as an important part of the ongoing development and oversight of our security environment.
Privacy and confidentiality
Customer information is entrusted to Fundment for specific financial services and operational purposes.
We maintain policies and safeguards addressing the collection, use, disclosure, and protection of personal information, consistent with applicable regulatory requirements, including SEC Regulation S-P and Regulation S-ID.
Our privacy notice explains how personal information is handled and the circumstances in which it may be disclosed.
3. Financial strength and long-term commitment
A custodian must be capable of meeting its financial and operational responsibilities through changing market conditions.
Fundment's approach to financial management emphasizes prudent capitalization, liquidity oversight, and investment in the infrastructure needed to support financial advisors over the long term.
An established business entering the U.S. market
Fundment's U.S. expansion builds on an established UK financial technology business with more than a decade of experience developing and operating an investment platform for financial advisors.
The U.S. business benefits from that experience, including the technology, operational knowledge, and investment in infrastructure developed by the wider Fundment group.
Regulatory capital and financial oversight
Fundment LLC operates within the financial responsibility framework established by the SEC and FINRA.
SEC Rule 15c3-1 establishes minimum net capital requirements for broker-dealers, with requirements determined by the nature of their business and activities.
Fundment monitors its financial resources and regulatory capital position as part of its financial management and supervisory responsibilities.
Our approach to investment and growth reflects a commitment to developing a sustainable business capable of serving financial advisors and their clients over the long term.
Institutional backing
The Fundment group is backed by institutional investors including Highland Europe and ETFS Capital.
Their investment has supported Fundment's development and expansion as a provider of investment technology and financial services.
4. Operational resilience
Financial advisors depend on reliable access to the systems and services supporting their clients' investments.
We recognize that operational resilience requires preparation, effective oversight, and clear responsibilities when disruptions occur.
Business continuity
Fundment maintains a business continuity framework addressing potential disruptions to critical business operations.
This includes planning for technology incidents, interruptions affecting important service providers, recovery arrangements, and communications with relevant stakeholders.
Our business continuity arrangements are subject to applicable regulatory requirements, including FINRA Rule 4370.
Regulatory supervision
Fundment LLC is registered with the Securities and Exchange Commission and is a member of FINRA.
Its operations are subject to applicable U.S. broker-dealer regulations, including requirements concerning:
Financial responsibility:
SEC Rule 15c3-1, governing broker-dealer net capital.
Customer protection:
SEC Rule 15c3-3, addressing customer securities and funds.
Books and records:
SEC Rules 17a-3 and 17a-4, governing the creation and preservation of required records.
Business continuity:
FINRA Rule 4370, establishing requirements for business continuity planning and emergency contact information.
These obligations are part of the regulatory framework governing Fundment LLC and its activities.
Technology and infrastructure
Fundment's technology architecture is designed with scalability, reliability, and operational resilience in mind.
Infrastructure monitoring, incident management, recovery planning, and the management of technology dependencies form part of our approach to maintaining service continuity.
5. Transparency and accountability
We believe financial advisors should be able to understand how the institutions supporting their clients operate.
That includes clarity about regulatory status, the protections applicable to customer assets, information security practices, and the arrangements intended to support business continuity.
Fundment provides relevant regulatory disclosures and information about its services to help advisors evaluate the platform and fulfill their own due diligence responsibilities.
Our commitment is to build lasting relationships with advisors through dependable technology, clear responsibilities, and a disciplined approach to operating financial infrastructure.
Built for responsibility
Fundment brings together established investment platform experience, institutional backing, and a regulated U.S. brokerage business.
We believe that custody should give financial advisors the confidence to concentrate on serving their clients, supported by infrastructure designed with security, financial responsibility, and resilience at its core.
Protecting client assets is fundamental to what we do, and to the trust we work to earn every day.