Some Things to Know About Scout’s Regulatory Compliance
In the world of wealth management, trust and credibility are incredibly important. Entrusting your money to a money coach is a lot like a student-athlete committing to a college – sure, name and prestige are of course important, but working with an advisor you can build a relationship with can also have a big impact on your financial future.
The same way a freshman student-athlete is entrusting their new coach to help them learn and grow into their potential, a new investor is entrusting their advisor to effectively manage their investments and support their financial growth. Building that relationship requires a huge amount of trust – that tends to be important when you give someone new the keys to your financial future. The way we see it, that trust is earned through clear, transparent communication and an adviser’s commitment to strict regulatory compliance.
We built Scout with exactly that in mind. We’re dedicated to breaking the cycle of financial mismanagement that has long plagued athletes of all ages – that means offering a financial planning solution designed to support the athlete’s growth. In order to serve these athletes, we’re committed to staying ahead of the ever-evolving regulatory landscapes that affect both the wealth management industry and collegiate athletes.
We get a lot of questions about Scout’s regulatory compliance, fees, data privacy, and more. We’re always happy to take your specific questions, but here’s some things that we often get asked about:
- We Don’t Hold Money
When an athlete invests with Scout, we don’t hold their funds directly – we've partnered with Apex as our custodian to hold client money for added security and reliability. By working with a partner like Apex, we can focus on providing our clients with the personalized Scout experience while knowing that those assets are held in compliance with a specific set of regulatory guidelines that Apex, as a custodian, is required to follow. More info on Apex can be found below.
- We Partner with Apex Clearing Corporation
We partner with Apex Clearing Corporation (“Apex”), an SEC registered broker-dealer and member of FINRA and SIPC, to provide trade execution and clearing services for all of our clients. Apex works with many other well-known fintech platforms including Sofi and Betterment*, and they are the custodian for all the accounts we manage on our platform. For more information about Apex and their services, please click here.
- Your savings may be FDIC Insured up to $250k
There is significant peace of mind that comes with knowing the funds in your savings account are protected by FDIC insurance. The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the U.S. government that protects certain client assets in the event that a bank fails. This means that client deposits can be covered up to $250,000, safeguarding their hard-earned NIL money and other savings. Please contact us if you would like to discuss whether or not your assets would be covered by the FDIC.
- Our Fee Structure
Scout does not directly bill clients for the investment advisory services we provide. Rather, Scout is compensated by the colleges and universities who choose to provide their student athletes with access to the platform. In most cases, our clients are not charged any additional fees for becoming Scout clients and receiving Scout’s investment advisory services. (For more information on the fees you may be charged and how we get compensated to provide investment advisory services to you, please view our ADV Part 2A here: https://adviserinfo.sec.gov/firm/brochure/318417).The compensation paid by our partner schools is a single advisory fee called a wrap fee that covers both investment advice and the execution of transactions for the student-athletes given access to Scout.
- We Only Employ Licensed Educators
All of our Scout Coaches are licensed as ‘investment adviser representatives’. For more information about our financial professionals, their backgrounds and licensure, or anything else relating to our staff, please contact us via email or look them up on the SEC’s Investment Adviser Public Disclosure Website, found here: https://adviserinfo.sec.gov/.
- Our User Data is Encrypted and Secure
Through the account registration process, Scout obtains a variety of personal information, which may include items such as the user’s full name, physical residence address, date of birth, social security number, and occupation. In addition, we also collect profile information which includes but is not limited to risk tolerance, investment time horizon, and certain financial information in order to create an appropriate risk profile for each client account. This information is fully encrypted and is not shared with any third parties that do not need access to it in order to service your account. We are happy to provide you a copy of our Privacy Notice if you contact us via email at: [insert email].
- Our App Can Integrate with Most Major US Banks
We understand that universities and their athletes often have existing banking relationships, so we designed Scout’s platform with bank compatibility in mind. Our insights and planning tools integrate with most major banks so you can continue using the banking services you trust while taking advantage of the features our platform offers.
When it comes to the financial well-being of student-athletes, trust and transparency aren't just nice to have – they're the foundation of our approach at Scout. We understand the unique challenges and opportunities facing college athletes in today's NIL landscape, and we're committed to being a partner that universities and athletes can rely on. We believe in open communication, and we're always happy to discuss how we can best support your athletes and your program.
If you have further questions about Scout's compliance measures or anything else, we encourage you to visit our customer relationship summary document, available here.
*Scout is not affiliated with these firms.
