ICS for Brokerage Firms
BUILD PROFITABLE CLIENT RELATIONSHIPS
The Insured Cash Sweep® service, or ICS®, helps brokerage firms to
- Attract new client relationships by offering a secure, cash management solution for larger cash deposits
- Increase assets under management by encouraging existing safety-conscious customers to consolidate their investments, thereby deepening relationships
- Provide an alternative to money market mutual funds; with ICS there are no floating net asset values, liquidity fees, or redemption gates, and a brokerage firm can control its rate and revenue
- Enjoy time-saving features, such as a nontransactional online tool for customers that tracks balances and more
- Earn fee income
HOW ICS WORKS FOR BROKERAGE FIRMS
ICS enables brokerage firms to offer clients access to multi-million-dollar FDIC insurance on funds placed into demand deposit accounts or money market deposit accounts. In addition to offering access to FDIC insurance, with ICS, you can offer clients the opportunity to earn favorable returns with a Treasury- or government-money-market-mutual-fund-like risk profile.
When a brokerage firm places a client’s funds through ICS, it receives fee income by placing these funds with banks that desire funding. The brokerage firm sets the rate and sells just the funding, not the underlying relationship.
Client funds are broken up into amounts under the standard FDIC insurance maximum of $250,000 and are placed with participating ICS banks so that customers can access FDIC insurance from many banks while working directly through just the brokerage firm.
Note: Brokerage firms that are part of a bank can also choose to exchange client funds on a dollar-for-dollar basis—working together with the bank or making placements through the affiliated bank—with other banks in the ICS Network.
DISCOVER HOW YOUR BROKERAGE FIRM CAN GROW MARKET SHARE WITH ICS
Use of the ICS service is subject to the terms, conditions, and disclosures set forth in the ICS agreements, including the CDARS-ICS Participating Institution Agreement and ICS Deposit Placement Agreement. Limits and customer eligibility criteria apply. ICS program withdrawals are limited to six per month when using the ICS savings option. A broker-dealer that places funds through ICS for a customer may do so only as directed by the customer and not pursuant to an automatic deposit, or “sweep,” program. ICS and Insured Cash Sweep are registered service marks of Promontory Interfinancial Network, LLC.