All client expense funds are held on deposit at highly rated banks in normal depository accounts with daily funds availability. Client funds are not invested in securities, such as commercial paper, bonds or stocks. Furthermore, SRS Acquiom structures clients’ expense funds in a way that allows our clients to get the full benefit of pass-through FDIC insurance, providing risk coverage of up to $250,000 per beneficial owner. So while a specific expense fund might be $1 million, if the largest shareholder owned only 20% of the company, then all shareholders would be 100% covered by FDIC insurance.
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Posted in: Clients: Escrow Accounts