Corporate Office:

555 12th Street, Suite 1250, Oakland, CA 94607

Business Development Office:

201 Shannon Oaks Circle, Suite 200, Raleigh, NC 27511

Client Support & Operations Office:

401 Wilshire Blvd., Suite 1200 Santa Monica, CA 90401

Business Hours:

8:30 AM - 5:00 PM PST (Monday - Friday)

Company Classification: 

Administrator

Date Established (under current name):

2005

Type of entity:

LLC

Who provides custody for client assets:

Kingdom Trust Company

Company is registered in: 

Delaware

Primary Line of Business: 

Providing self-directed IRA administrative services to clients for alternative investments

Other Lines of Business:

None

Typical Client:

Both Institutional and Individual Retail Clients

Capable of working with Financial Advisory Firms

Governmental Agency Oversight: 

IRS, DoL; State of South Dakota; can also be the FDIC, CFTC, SEC, etc.

Company's Last Audit: 

2015  (by: Stovall, Grandey & Allen - Fort Worth Texas)

Number of Active Clients:

19,000+

Number of Active accounts:

19,000+

Amount of assets company provides custody for:

$2.3 Billion

Self-Directed IRA industry affiliations (outside of this company):

None

Ownership of industry related websites:

None

Industry related company affiliations:

None

Industry related non-profits:

None

Industry related associations:

None

Industry related board of trustee positions:

None

Industry related publications:

Books by Hubert Bromma:

Account Setup Fee:

$50

Account Termination Fee:

$250

Service Fee Classification: (flat, transaction-based, asset-based, hybrid)

Two Choices: Asset-based or transaction-based fees

Company Fee Schedule:

The Entrust Group Fee Schedule* (as of 1/1/16)

Does The Entrust Group sub-custody certain assets at other firms:

Does The Entrust Group provide sub custody services to other firms:

Asset Specialization:

Real Estate

Most popular assets held:

Client account title format:

The Entrust Group, Inc., FBO [Client Name], [Account number]

Number of full-time employees:

(Not Disclosed)

What trends do you see in the self-directed IRA industry?

Greater regulatory oversight on administrators, custodians, and the clients' investment providers. Strong growth, especially in real estate, but also some fueled by crowdfunding.

What trends in asset types do you see at your firm?

Company transaction volume in real estate increased by 21% in 2015; 18% in precious metals. No "new" asset type has emerged with Entrust, although some might consider crowdfunding an emerging asset type; it is growing, but still having a minor impact on the industry. Many crowdfunding providers want to offer to IRAs, but first want to fine tune their platforms for non-IRA investing, which seems wise.

What is your firm's biggest concern about the self-directed IRA industry?

Regulatory changes. These can impact the flow of work and also be an unanticipated cost.

Please list some additional concerns your firm has about the industry?

There is always a concern about the expenses and distractions caused by lawsuits. We have never lost any, but despite that, they still appear from time to time.

Do you see any changes in regards to what investors want from custodians and administrators?

Enhanced online capabilities; i.e., more information, more readily available to them, with the ability to transact more in their own hands; pay bills and submit all forms online.

What are your company's biggest challenges?

Hiring talented people. Educating clients and prospective clients in a manner that they understand the importance of our services and the role we play, and their responsibilities as IRA-investors.

What are the self-directed IRA industry's biggest challenges?

Fragmentation. Different providers permit different investments; review them in different ways and have different requirements (e.g., FMV; whether they accept single-member LLCs). Prospective clients often compare firms before establishing an account. They want to know why you do/do not permit something while the other firm takes a different stance. Then there are companies that tout that the real estate investor "needs" to establish a single-member LLC to invest in real estate through their IRA. While this is not true, they perpetuate the myth because they sell lots of LLCs for large sums of money. It is a disservice to the clients and damages the industry.

What needs to be changed in the Self-Directed IRA industry?

The above. Those who sell LLC set-up should not tout it as essential. As well, the industry needs standards on FMV, and certain companies which inappropriately provide investment advice should cease doing so. Again, a disservice to the client and tarnishes the industry.

How could the Self-Directed IRA Industry improve?

Companies should place greater emphasis on the concern they show for prospective clients. Many greedily sell things the client does not need (LLC); many provide investment advice, despite that they should not and are not qualified to do so; many misinform clients about the laws and regulations of the industry; i.e., they lie, regularly for their own gain. If you attend trade shows where self-directed IRA companies speak, you will find this. It is not everyone, not even the majority. But there are a handful of companies whose representatives are, at times, disingenuous. This needs to be changed, and I would be very pleased if a regulator periodically sanctioned companies for this type of behavior. Clients would benefit and the industry would too.

What is the biggest reason for the company's success?

Our clients have a designated rep. that works with them from account opening through the investment stage. This enables both parties to learn quickly what the client needs are and work to accommodate them, efficiently. Most companies have an 800 number for their service, and this is both good and essential (Entrust has this too). But when you are getting started, you don't want to have to repeat yourself to a new person every time you call up. The designated rep model has served us very well, and based on our client surveys, it is one of the key reasons we clients come to us. We received survey results from more than 1,000 active clients just over a year ago; 92% said they would make the same choice to work with Entrust. That tells me our service model - which is a top priority here - works.