Custody & Banking Relationship | Sunstate Bank Wealth Management

Secure Asset Safekeeping Through Sunstate Bank

Sunstate Wealth Management, LLC (“Sunstate Wealth”) provides investment advisory services, while Sunstate Bank - an affiliated but separate institution - provides custody and certain operational services for clients who choose to hold their assets with the Bank.

This separation allows clients to receive professional advisory guidance while benefiting from the infrastructure and security of a regulated financial institution.

Our Custody Partnership With Sunstate Bank

When you choose to custody assets with Sunstate Bank, you receive:

Secure Safekeeping of Assets

Your investment holdings are maintained in custody at Sunstate Bank, subject to bank regulatory oversight.

Trade Settlement & Account Administration

Trades recommended or executed by your advisor are settled by Sunstate Bank, which manages the operational and administrative processes for your account.

Account Statements & Confirmations

You receive regular statements and transaction confirmations directly from Sunstate Bank, providing transparency and oversight of all account activity.

Digital Access & Reporting

Clients may access account information, balances, and activity through Sunstate Bank’s online systems, as applicable.

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Understanding the Relationship

Although Sunstate Wealth and Sunstate Bank share common ownership under Sunstate Bancshares, Inc., they operate as separate legal entities:

Sunstate Wealth Management, LLC

Provides investment advice
Manages discretionary and non-discretionary portfolios
Acts as a fiduciary
Is regulated by the U.S. Securities and Exchange Commission
Does not provide banking or deposit services

Sunstate Bank

Provides custody, execution, clearance, and settlement
Delivers account statements and operational support
Is regulated as a Florida-chartered bank and FDIC member
Does not provide investment advice
Does not supervise or guarantee advisory services

This separation preserves transparency and ensures clients understand the roles of each entity.

When Custody With Sunstate Bank Is Required

Certain advisory arrangements require custody to be maintained at Sunstate Bank, including:

Wrap Fee Program accounts
As described in the Wrap Fee Brochure (ADV Part 2A Appendix 1), clients must use Sunstate Bank as custodian to participate in the program.
Certain integrated advisory services
Some strategies or products may require custody with the Bank due to operational efficiencies or regulatory structure.

When Custody Is Optional

For standard advisory relationships, clients may be eligible to use a different custodian unless:

The selected solution requires integrated execution
The trading model relies on Bank systems
Regulatory constraints apply
Specific products or account types require Sunstate Bank custody

Your advisor will discuss available custody options during onboarding.

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Costs & Conflicts to Understand

Custody with Sunstate Bank may involve:

Fees for certain operational services
Fund-level expenses within client investments
A share of the Wrap Fee being allocated to Sunstate Bank (where applicable)
Operational charges for wires, transfers, or other services
Potential conflicts arising from affiliate relationships

All conflicts are disclosed in Sunstate Wealth’s Form ADV materials and managed through supervisory oversight.

FDIC & Investment Risk Disclosures

Deposits held at Sunstate Bank are FDIC insured up to applicable limits.

However, investment assets are not FDIC insured, even when custody is provided by Sunstate Bank.

INVESTMENT PRODUCTS ARE:

NOT FDIC INSURED
NOT BANK GUARANTEED
NOT A DEPOSIT
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
MAY LOSE VALUE

Regulatory Documents

For full details about services, fees, risks, and conflicts, please review:

Wealth Management

Secure Asset Safekeeping Through Sunstate Bank