All Argos client accounts will soon have a new custodian, RBC Correspondent Services, the U.S.-based subsidiary of the Royal Bank of Canada (RBC). Argos clients’ assets will remain in the U.S., despite the name.
Clients are currently served by J.P. Morgan Clearing Corporation, which serves as the back office for Consolidated Financial Investments (CFI). J.P. Morgan recently decided to no longer provide custody services through independent broker dealers, which sent CFI on a very thorough search process.
RBC Correspondent Services was formerly Dain Rauscher, one of the largest full service securities firms in the U.S. until it was acquired by RBC in 2001. As a subsidiary of RBC, RBC Correspondent Services benefits from the significant financial strength of its parent company. RBC is a very large, experienced and financially healthy firm.
Founded in 1869, RBC is the largest bank in Canada with more than $837 billion in assets and was ranked by Bloomberg Markets in June 2014 as one of the top 20 World’s Strongest Banks. Based on its recent market cap, it is one of the five largest banks in North America and one of the 15 largest in the world. It currently carries a Standard & Poor’s credit rating of AA-, which is two notches above J.P. Morgan (A), and Goldman Sachs (A), and three notches above Bank of America (A-). The staff at CFI is very excited to be starting a relationship with RBC. They are confident that the service levels will be maintained or even improved from what J.P. Morgan has offered.
Given the financial strength of RBC, we are also pleased that CFI has found such a strong partner to serve as custodian for our clients’ assets. While there will likely be a few additional signatures required to document accounts on the RBC system, we will work with all of our client families to make the transition as smooth as possible.