About R&T
Bank Solutions
Broker-Dealer Solutions
Trust/Wealth Solutions
01

What types of clients does Reich & Tang serve?

We administer billions of dollars in deposits, with hundreds of bank relations, for some of the nation’s largest broker-dealers, banks and trust/wealth managers, as well as investment advisors/RIAs, institutional investors, and public and private sector entities.

02

When did Reich & Tang begin providing cash management solutions?

Since 1974 R&T has served the short-term investment needs of financial intermediaries and enabled them to better serve their clients with competitive and innovative programs. We are one of the largest third-party providers of FDIC-insured sweep programs in the U.S., with billions in our deposit programs. We have been administering FDIC programs for nearly 10 years and have amassed client relationships with several hundred bank and brokerage firms.

03

What types of services does Reich & Tang provide in connection with its FDIC cash sweep programs?

R&T provides funding and strategic balance sheet management solutions for banks. We also have one of the longest track records among FDIC-insured sweep programs that enable bank, trust/wealth management, brokerage, and public fund clients to receive high levels of FDIC insurance on their cash balances.

04

How many banks have failed while holding deposits from one of your programs?

No banks have ever failed while holding deposits in a Reich & Tang program.

05

Does Reich & Tang engage an accounting firm to audit its FDIC cash sweep operations?

Yes. R&T has a longstanding relationship with the highly reputable accounting firm, which audits the effectiveness of the controls we have in place to ensure the timeliness, completeness and accuracy of our FDIC cash sweep operations.

01

What technology or operational changes will our bank have to make to participate in your programs?

Reich & Tang offers programs that are fully integrated with most core processors, and our goal is to minimize any tech or ops changes for our clients. We work with you to carefully plan the transition to our program, looking to streamline and promote efficiency wherever possible.

02

How is compliance handled for AML, CIP, and tax reporting?

All sending institutions are responsible for compliance with Anti-Money Laundering and Customer Identification Program requirements on all underlying customer accounts. Our client banks must attest to this fact prior to onboarding with Reich & Tang and annually thereafter. Regarding tax reporting, sending institutions are the “payer” of the interest – and they have the option to handle reporting themselves or engage R&T to produce and mail tax forms and send the files directly to the IRS.

03

Are the deposits obtained by Receive-only/Destination banks through your programs stable?

Yes. The amount of deposits placed at your bank will generally not fluctuate on a day to day basis from the agreed-upon target level. During a typical month, the wire activity will typically be limited to the interest and fee wires at the end of each period.

04

How do the cost of deposits received from your programs compare to FHLB rates?

Deposits from our programs are typically comparable to net costs of Federal Home Loan Bank advances.

05

Can our customers that place balances into your DDM℠ program select the banks that receive their funds?

Yes.  Your customers have the option to exclude any program bank they choose. However, by opting out of one or more banks, it may affect the maximum amount of FDIC insurance your customers may receive.

01

What is the amount of FDIC insurance available through your broker-dealer programs?

Through our broker-dealer programs, our clients’ deposits can be covered by up to $10 million of FDIC insurance.

02

Do you provide FDIC sweep program solutions that satisfy relevant regulatory requirements?

Yes. Our FDIC sweep program solutions are designed to meet all relevant regulatory requirements, including the DOL Fiduciary rules and FINRA guidelines.

03

On average, how many daily wires are processed by a broker-dealer’s back office in connection with placing funds into and getting funds out of your FDIC cash sweep programs?

Typically we process one wire per day for broker-dealer clients in our FDIC cash sweep programs, except at month-end when interest is paid.

04

Can our customers that place balances into your FDIC cash sweep program select the banks that receive their funds?

Yes.  Your customers have the option to exclude any program bank they choose. However, by opting out of one or more banks, it may affect the maximum amount of FDIC insurance your customers may receive.

05

What are the pros and cons of using Reich & Tang Insured Deposits (RTID) versus a money market fund as a customer cash sweep vehicle?

Our RTID program is outside the scope of money market mutual fund reform. This means that the program:

  • Will not be subject to a floating net asset value
  • Does not have potential board of trustee imposed liquidity fees or redemption gates
  • Makes no distinction between retail and institutional clients
  • May decrease overall portfolio risk
01

Do you provide masking solutions that eliminate the need to provide the personal identifiable information of our customers or any other privacy information?

Yes.  Reich & Tang makes masking solutions available as a privacy measure to protect the personal identity information of your customers.

02

What technology or operational changes will our firm have to make to participate in the DDM program?

Reich & Tang offers programs that are fully integrated with most core processors, and our goal is to minimize any technology or operations changes for our clients.  We work with you to carefully plan the transition to our program, looking to streamline and promote efficiency wherever possible.

03

Can we settle transactions into and out of the DDM program on a “same day” basis?

Yes.  For same day trades, the cut-off time is 3:15 PM ET; wire transfers must be received by 3:30 PM ET.

04

How do you determine if a bank is eligible to receive deposits from the DDM program?

To be eligible to receive deposits from our DDM program, a bank must have more than $100 million in deposits and it must satisfy the FDIC’s well-capitalized requirements.

05

What are the pros and cons of using DDM versus a money market fund as a customer cash sweep vehicle?

Our DDM program is outside the scope of money market mutual fund reform. This means that the program:

  • Will not be subject to a floating net asset value
  • Does not have potential board of trustee imposed liquidity fees or redemption gates
  • Makes no distinction between retail and institutional clients
  • May decrease overall portfolio risk
06

Can our customers that place balances into your DDM program select the banks that receive their funds?

Yes. Your customers have the option to exclude any program bank they choose. However, by opting out of one or more banks, it may affect the maximum amount of FDIC insurance your customers may receive.

07

Are you fully integrated with major Trust Accounting Systems?

Yes. Our DDM program is integrated through most trust accounting platforms offering late cut-off times.

08

What is your cut-off time?

For same day trades, the cut-off time is 3:15 PM ET; wire transfers must be received by 3:30 PM ET.