Bernie Madoff, the notorious financial Advisor who scammed billions of dollars from his investors, was able to run his Ponzi scheme because he essentially worked alone. He controlled all vital functions of his investment firm, calculated investment returns internally, and served as custodian – meaning he held the funds. You want an Advisor whose “system” includes at least one independent third party to provide checks and balances. Ideally, one firm will design and implement your investment strategy, while another firm will serve as custodian. Companies such as Charles Schwab & Co., Fidelity Investments, and Interactive Brokers act as custodians, responsible for safeguarding your financial assets. Specifically, a custodian arranges settlements of purchases and sales, creates reports on those assets, and administers tax withholding documents. Your statements would come directly from the custodian.