Your RIA wants to start a trust company. But is there enough business to support it?

In this episode of The Advisors Edge, host Chad Ramberg sits down with David Peterson, Founder & President of American Fiduciary Solutions, to examine what it takes to establish and operate a trust company and why the business case should come before the charter.

Drawing on his experience as a former financial institution examiner and trust company consultant, David explains the financial commitment, leadership requirements, and regulatory responsibilities RIAs and family offices need to consider.

The conversation also explores jurisdiction selection, private family versus public or retail trust companies, regulatory examinations, and the differences between trustee and custody services.

WHAT YOU'LL DISCOVER:
✅ Why existing client demand should influence the decision to establish a trust company
✅ What RIAs should understand about initial capitalization, operating reserves, and ongoing expenses
✅ Why dedicated leadership is essential when operating a regulated trust company
✅ How private family trust companies differ from public or retail trust companies
✅ What advisors should evaluate when choosing a state for their trust company charter
✅ Why regulatory examination preparation requires ongoing attention
✅ How trustee services and custody services represent different trust company business models

The central question isn't simply whether your RIA can establish a trust company. It's whether the business case, operational capacity, and long-term responsibilities make sense for your firm.


ABOUT THE GUEST
David Peterson
Founder & President, American Fiduciary Solutions

David Peterson is the Founder and President of American Fiduciary Solutions, a firm that helps clients establish and operate trust companies.

His background includes serving as a financial institution examiner with the South Dakota Division of Banking and working with trust companies on applications, governance, compliance, and regulatory examinations.

Through American Fiduciary Solutions, David supports clients with trust company formation, board responsibilities, ongoing operations, and examination preparation.

Connect with David:
LinkedIn: https://www.linkedin.com/in/david-peterson-3b538851/
Website: http://www.americanfiduciarysolutions.com/


ABOUT THE HOST
Chad Ramberg
Co-Founder & President, Box Professional Insurance

Chad Ramberg works with registered investment advisors on professional insurance and risk considerations.

LinkedIn: https://www.linkedin.com/in/chad-ramberg-71278533/
Website: https://www.boxproinsurance.com


SPONSOR
Special thanks to Box Professional Insurance for supporting The Advisors Edge.

Box Professional helps RIAs understand where operational and risk exposure actually shows up before it becomes a claim.

Learn more: https://www.boxproinsurance.com



CHAPTERS

00:00 — Introduction: What RIAs Should Know About Trust Companies
02:00 — How American Fiduciary Solutions Supports Trust Companies
03:52 — David's Background in Trust Company Regulation
07:00 — When Should an RIA Consider Starting a Trust Company?
10:24 — Why Dedicated Leadership Matters
11:57 — Business Planning and Regulatory Expectations
14:08 — Initial Capital Requirements and Operating Reserves
16:38 — Technology, Staffing, and Office Requirements
19:16 — Private Family Trust Companies vs. RIAs
21:36 — Choosing the Right State for a Trust Company
25:35 — Regulatory Examination Frequency
30:00 — Trustee Services vs. Custody Services
33:11 — Does Starting a Trust Company Make Business Sense?
35:24 — Final Reflections


THE ADVISORS EDGE

The Advisors Edge features practical conversations for RIA owners, fiduciary advisors, and advisory-firm leaders navigating decisions involving firm operations, risk, compliance, client relationships, and long-term growth.


DISCLAIMER

The views shared in this episode reflect the perspectives of the hosts and guest. They are not financial advice or investment recommendations. Always consult a qualified professional regarding your specific situation.