Insights · Client education
Client educationWhy “we never hold your assets” might not mean what you think
Segregated custody is a real protection. It is not a substitute for knowing the bank, the mandate powers and who can move money.
8 September 2026 · Helfenstein Editorial Team · 11 min read
Last reviewed 17 September 2026
Helfenstein Group’s public line is simple: we are paid only by our clients, and we never hold your assets. The marketing message is maximum security — no commingling with the firm’s balance sheet, no custodian risk at the adviser. That part is true, and it matters.
It is not the end of the story. Assets still sit somewhere. Someone still has the power to instruct a sale, a transfer or a change of account. “We never hold your assets” tells you who does not have custody. It does not, by itself, tell you who does — or what they are allowed to do.
Where are your assets actually held?
In a standard private-client setup the securities and cash sit at a third-party bank or broker, in an account in your name. In Switzerland that is often a private bank or a custody desk at a universal bank. The adviser has a mandate to view, and sometimes to trade, but the legal owner of the account is you.
That is different from an adviser who is also the custodian, or who pools client money in an omnibus account. Advisory and custody are two jobs. Combining them concentrates risk. Separating them is the model we use: you choose the bank; we provide advice or discretionary management on top of it.
“In your name” still needs a document. Ask for the account number, the exact legal name on the statement, and a sample bank statement that you can request directly from the bank — not only a PDF the adviser forwards.
The hidden control points
A discretionary mandate lets the manager trade without calling you for each ticket. That is the point of the mandate. It is also a control you should size deliberately: permitted instruments, excluded markets, maximum cash, no leverage unless you asked for it.
Some arrangements allow transfers between your own accounts at the same bank. Others allow wires to third parties up to a limit, or “signature card” authority that lets an individual approve payments. Those powers are not implied by “we do not hold assets”. They live in the bank forms and the power of attorney.
Read the instruction letter. If it allows withdrawals to an account that is not yours, or if the same person can both trade and change payment details, you have a concentration of duty that custody segregation does not fix.
Red flags in custody arrangements
No written custody agreement, or a verbal “the bank will send you something later”, is a reason to pause. So is a vague custodian — “a leading Swiss bank” without a legal name, city and BIC.
Assets booked in an unfamiliar offshore vehicle — a Cayman or Luxembourg structure you did not ask for — need a separate explanation: who is the depository, who is the auditor, and why the holding cannot sit in your own account. A single point of contact for every transaction, with no bank login of your own, is another warning. You should be able to see the same positions the adviser sees, from the bank.
Due diligence checklist
Write down the custodian’s legal name and address. Verify the account statements by logging in or calling the bank on a number you looked up yourself. Confirm that wire instructions print the bank’s name, not a personal account.
If the custodian is a Swiss bank or securities firm, check the FINMA register. If it is a foreign bank, check the home regulator. Keep a copy of the mandate and the bank’s power-of-attorney form in your own files.
Request a custody verification conversation
General information only. Nothing on this page constitutes personalised investment, tax or legal advice. Helfenstein Group does not hold client assets; all custody stays with the bank you choose, under your control. Decisions should be based on your own circumstances and, where appropriate, on a written analysis from a qualified adviser.